World Bank Appraisal of Kiribati Adaptation Project by InfoDev ApS

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Report No: 35969-IU

PROJECT APPRAISAL DOCUMENT ON A

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ADAPTATION PROJECT - IMPLEMENTATION PHASE (IWP 11) May 4,2006

Rural Development and N a t u r a l Resources Sector Unit East Asia and Pacific Regon

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

CURRENCY EQUIVALENTS (Exchange R a t e E f f e c t i v e a t A p p r a i s a l - D e c e m b e r 12,2005) C u r r e n c y Unit = AUD

1 AUD = US$.075 1 US$ = AUD 1.34

FISCAL YEAR January 1 D e c e m b e r 33 ABBREVIATIONS AND ACRONYMS ADB AMI< APL AusAID CCA CCST

DCC ECD EEZ EU GEF GoI< IC IWP ICANGO ICAP LDC MCIC MCTTD MEA MELAD MEYS

MFAI MFED MFMRD MHMS MISA

MLPID MPWU MOP NAPA NASC NBSAP NDS

NGO NEPO NZAID OB 01 PICCAP

Asian D e v e l o p m e n t B a n k All W o m e n o f I G r i b a t i (national women's association) Adaptable P r o g r a m L o a n Australian Agency for International D e v e l o p m e n t Clunate Change Adaptation Climate Change Study T e a m D e v e l o p m e n t C o o r d m a t i o n Committee E n v i r o n m e n t a l Conservation Division (MELAD) Exclusive E c o n o m i c Z o n e E u r o p e a n Union G l o b a l E n v i r o n m e n t Facility Government of IGribati I s l a n d Council International Waters Program I G r i b a t i Association o f NGOs I G r i b a t i Adaptation P r o g r a m Least D e v e l o p e d Country M i n i s t r y o f Commerce, Industry a n d Cooperatives M i n i s t r y of Communications, T r a n s p o r t a n d Tourism D e v e l o p m e n t Multllateral E n v i r o n m e n t a l Agreements M i n i s t r y o f E n v i r o n m e n t , Lands a n d Agriculture D e v e l o p m e n t M i n i s t r y o f Education, Youth a n d Sports M i n i s t r y o f Foreign A f f a i r s a n d I m m i g r a t i o n M i n i s t r y o f Finance a n d E c o n o m i c D e v e l o p m e n t Ministry o f Fisheries a n d M a r i n e Resources D e v e l o p m e n t M i n i s t r y o f H e a l t h a n d M e d i c a l Services Ministry o f I n t e r n a l a n d Social Affairs W s t r y of L i n e a n d P h o e n i x I s l a n d D e v e l o p m e n t M i n i s t r y o f P u b l i c Works a n d U t h t i e s M i n i s t r y Operational P l a n N a t i o n a l Adaptation P r o g r a m m e of A c t i o n N a t i o n a l Adaptation Steering C o m m i t t e e N a t i o n a l Biodiversity Strategy A c t i o n P l a n N a t i o n a l D e v e l o p m e n t Strategies N o n Governmental Organization National Economic Planning Office N e w Zealand Agency for International D e v e l o p m e n t O f f i c e T e Beretitenti (Office o f the President) Outer Island Pacific Islands Climate Change A d a p t a t i o n P r o g r a m

PMU POPS SAPHE SDGIK

SIL SNPRA SOPAC

SPREP UNCBD UNCCD UNDP UNFCCC

P r o j e c t Management Unit P e r s i s t e n t Organic P o l l u t a n t s Sanitation, Public H e a l t h a n d E n v i r o n m e n t I m p r o v e m e n t P r o j e c t Strengthening Decentralized Governance in K i r i b a t i (UNDP) Sector Investment L o a n Strategic N a t i o n a l Policy a n d Risk Assessment Unit S o u t h Pacific A p p l i e d Geosciences Commission S o u t h Pacific Regional E n v i r o n m e n t Programme U n i t e d N a t i o n s Convention on Biodiversity U n i t e d N a t i o n s Convention to C o m b a t Desertification U n i t e d N a t i o n s D e v e l o p m e n t Programme U n i t e d N a t i o n s F r a m e w o r k Convention on Clunate Change

Acting V i c e President:

Country M a n a g e r / D i r e c t o r :

Sector Manager: T a s k T e a m Leader:

Jeffrey S. Gutman, EAPW X i a n Zhu, EACNF H o o n a e I-, EASRD I d a h P s w a r a y i - R i d d i h o u g h , EASRD

PROJECT.IMPLEMENTATION PHASE(KAP 11)

KIRIBATI ADAPTATION

CONTENTS Page A

STRATEGIC CONTEXT AND RATIONALE

.................................................................

Country a n d Sector Issues (see Annex I$r details) ..................................................................

Rationale for B a n k i n v o l v e me n t

........................................................................................... 3. H i g h e r level objectives to w h l c h the proj ect contributes .......................................................

PROJECT DESCRIPTION (See Annex 4 for further details)

2. 3. 4.

.........................................

3 4

.............................................................................................................. 4 Project development objective ............................................................................................. 5 Project components ............................................................................................................. 6 Lessons learned a n d reflected in the proj ect design .............................................................. 7 Alternatives considered a n d reasons for rejection ................................................................. 7

.........................................................................................................

(if applicable) ...............................................................................

P ar t n e rs h p arrangements

I ns t it u ti o n a l a n d i mp l e m e n ta ti o n arrangements (see also Annex

Monitoring a n d evaluation o f outcomes /results

6)..........................................

................................................................. 4 . Sustainability a n d Replicability............................................................................................ 5 . Critical r i s k s a n d possible controversial aspects .................................................................. 6 . Loan/c re d i t conditions a n d covenants ...............................................................................

L e n d i n g i n s tru m e n t

IMPLEMENTATION

APPRAISAL SUMMARY

...............................................................................................

8 9 12 12

14 15 16

Economic and Financial Analyses ....................................................................................

Technical

............................................................................................................................ 3 . Fiduciary ............................................................................................................................ 4 . Social ................................................................................................................................. 5 . E nv ir o n m e n t., .................................................................................................................... 6 . Safeguard policies ............................................................................................................... 7 . Policy Exceptions a n d Readiness ........................................................................................

17 19

19 20

....................................................

ANNEX 1 COUNTRY. SECTOR AND PROGRAM BACKGROUND

ANNEX 2: MAJOR RELATED PROJECTS FINANCEDBY THE BANKAND/OR OTHER AGENCIES

................................................................ ANNEX 4: DETAILED PROJECT DESCRIPTION ............................................................................ ANNEX 5: PROJECT COSTS........................................................................................................... ANNEX 6: IMPLEMENTATION ARRANGEMENTS.......................................................................... ANNEX 3: RESULTS FRAMEWORK AND MONITORING

............. ANNEX 8: PROCUREMENT ARRANGEMENTS ............................................................................... ANNEX

7: FINANCIAL

MANAGEMENT AND DISBURSEMENT ARRANGEMENTS

........................................................................................ ANNEX 10: PROJECT PREPARATIONAND SUPERVISION ............................................................. ANNEX 11: DOCUMENTS INT H E PROJECT FILE ......................................................................... ANNEX 9: SAFEGUARD POLICY ISSUES

ANNEX 12: STATEMENT OF LOANS AND CREDITS

......................................................................

............................................................................................. ANNEX 14: INCREMENTAL COST AND ECONOMIC ANALYSIS ..................................................... ANNEX 15: STAP ROSTER REVIEW.............................................................................................. ANNEX

13: COUNTRY AT A GLANCE

MAP IBRD #33427

37 43 51

57 63

70 81 83 84 85 87 95

KIRIBATI ADAPTATION PROGRAM P H A S E I1- PILOT IMPLEMENTATION PHASE ( I U P 11) P R O J E C T DOCUMENT

EAST A S I A AND P A C I F I C EASRD Date: April 5, 2006 Country Director: &an Zhu Sector Manager/Director: Hoonae I& Project ID: PO89326 Focal Area: C h a t e change Lendmg Instrument: Specific I n v e s t m e n t Loan

FOR INTERNATIONAL DEVELOPMENT NEW ZEALAND, GOV. OF (EXCEPT FOR MIN. OF FOR. AFFAIRS)

Total:

Responsible Agency:

Ministry o f Finance & Economic Development PO Box 67 B a i r h , Tarawa, IOlibati

Tel: 686 21660

Fax: 686 21307

Team Leader: Idah 2. Pswarayi-kddhough Sectors: General water, sanitation and flood protection sector (60째/o);General public a h s t r a t i o n sector (25%);General agriculture, fishmg and forestry sector (15%) Themes: Vulnerabhty assessment and monitoring (P);Climate change (?);Natural dsaster management (P);Other environment and natural resources management (P) Environmental screenmg category: Partlal Assessment

0.46

0.51

0.97

4.34

2.24

6.58

-w-

Annual Cum ulat iv e

A-

0.02 0.02

0.38 0.40

0.50 0.90

0.65 1.55

Pr ojec t im ple me n ta ti o n period: Start June 1,2006 E x p e c t e d effectiveness date: June 30, 2006 E x p e c t e d closing date: June 30,2009 Does t h e pr o j e c t depart from th e

Ref: PAD A.3

10 -.

0.25 1.80

0 0.00 1.80

End: June 30,2009

CAS in content or other significant respects?

Does t h e pr o j e c t require any exceptions from B a n k policies?

Ref: PAD D.7

H a v e these b e e n approved by B a n k management? I s appr ov al for any p o l i c y exception sought from the B oard? ~~

D o e s t he pr o j e c t include any critical r i s k s rated “substantial” or

Ref: PAD C.5

0 0.00 1.so

“high”?

D o e s t he pr o j e c t me e t th e Regional criteria for readiness for implementation? PAD D...7 -Ref: -- -

[ ]Yes

[ [ [

]Yes

NN o No

]Yes ]Yes

[ IN0

WYes

[ ]No

HYes

[ ]No

Pr ojec t development objective Ref: PAD B.2, Technical Annex 3 T h e k ey objective of th e p ro p o s e d Pilot Impl ementati on Phase o f I(AP (I(AP-11) i s to develop a n d demonstrate t h e systematic diagnosis o f climate-related problems a n d the design of cost-effective adaptation measures, w h i l e c o n ti n u i n g th e integration of climate risk awareness a n d responsiveness into economic a n d operational planning. Lessons learned from I(A P -I1 would b e used to p l a n the long- t er m national response to climate change envisaged for 2008/9 onwards, a n d would also b e relevant to m a n y other small island states around the world. G l o b a l E n v i r o n m e n t objective Ref: PAD B.2’ Technical Annex 3 T h e global environmental objective o f the IL4P I1i s to assist the GoK in enhancing i t s capacity to p l a n a n d im p l e m e n t adaptation measures to the climate-related issues facing t h e country, w h i c h wdl also reduce the detrimental impacts o f climate change on the fragile a t o l l ecosystems o f IGribati. Ths would b e achieved by providing a n essential transitional stage in preparation for the l ong-t erm nat ional response to c h a t e change, i n c l u d m g pilots that wdl generate experience for w ider application in I G i b a t i a n d other small island states. G l o b a l benefits would include i m p r o v e d management, conservation, restoration a n d sustainable use o f biodmersity, such as i m p r o v e d p ro te c tion a n d management o f mangroves a n d coral reefs w h i c h har bor a w i d e variety of fish - on w h i c h I G r i b a t i i s highly dependent. A p a r t from reduced vulnerability to climate change, climate variability a n d sea level rise, national benefits would c o m e from stabilizing ecosystems a n d improving producti ve capacity o f mangroves a n d coral reefs w h i c h affect th e availability of fish catch, thereby reducing economi c vul nerabhty of those dependent on these activities a n d c ontri buti ng to poverty reduction.

Project description [one-sentence szmmary each componeng Ref: PAD B.3.a’ Technical Annex 4 I U P - I 1 aims to change th e way I G r i b a t i handles i t s pl anni ng a n d i mpl ementati on o f regular activities so that they better take account o f climate risks. T h i s requires progressive reinforcement of adaptation-related programs in th e n a ti o nal Government’s budget a n d sectoral plans, in combi nat ion with a process o f participatory adaptation, involving island councils, NGOs, churches, communities,

md indwiduals. T h e priority adaptation investments supported by IUP-I1 will n o t only p r o v i d e m e d i a t e results in terms o f reduced vulnerability, but wdl also h e l p to demonstrate a n d p r o m o t e a Aimate-risk aware approach to planning and design of such activities. A f t e r IUP-11, these activities gill b e expanded as p a r t o f a continued adaptation program, both in scope a n d in terms o f addressing additional sectors. r h e project would have five b r o a d components: Z o m p o n e n t 1: Policy, planning, a n d i n f o r m a t i o n (US$ 1.17 d o n , of w h i c h US$0.81 million i s Gnanced from GEF). This component supports three core elements o f all adaptation efforts in Kiribati. T h e f i r s t element i s awareness raising a n d consultation. T h e second element i s policy coordination a n d planning, including technical assistance for the n e w Strategic N a t i o n a l Policy a n d Risk Assessment Unit in the O f f i c e o f T e Beretitenti; capacity building in Integrated Coastal Z o n e Management a m o n g key government staff; continued mainstreaming into Ministry Operational Plans; a n d integration o f adaptation into government development programs. T h e third element i s to generate scientific climate risk i n f o r m a t i o n a n d refurbish the capacity of the Meteorological O f f i c e with n e w equipment a n d training of staff. C o m p o n e n t 2: L a n d use, physical structures, a n d ecosystems (US$ 2.17 d o n , of w h i c h US$0.40 million i s financed from GEF). This component will contribute to reducing the vulnerability o f t h e c o a s t h e including key public assets a n d ecosystems, shifting t h e coastal management practice from a reactive, single technique approach to repairing damage as i t occurs, to a preventative a n d more technically varied risk mitigation strategy, including m o r e attention for environmental sustainability. M o r e specifically, the component would support technical assistance, workshops, and awareness materials for the development a n d application of i m p r o v e d risk diagnosis a n d response methods! and improvements in planning a n d permitting processes to guide coastal zone activities; finance design a n d construction guidelmes, a n d apply t h e m by i m p l e m e n t i n g protective measures at a sample of public assets that are at risk; as w e l l as finance t h e monitoring a n d pilot activities tc protect a n d restore coastal ecosystems and biodiversity affected by climate change, climate variabiliq a n d sea level rise, including the detrimental effects of current adaptation practices. C o m p o n e n t 3: Freshwater resources (US$ 2.16 million, entirely financed by AUSAID). Th: component includes the development a n d management o f freshwater resources to reduce theh vulnerability to climate variability a n d climate change. I t will p r o v i d e support for technica assistance, awareness materials, a n d workshops to update t h e national water policy, i m p r o v e watei resource management, a n d revise building codes to enhance opportunities for rainwater catchmen] a n d storage. On Tarawa, the component wdl also support the preparation o f a master p l a n for watei resources on Tarawa, as w e l l as the implementation o f pilot projects to identify a n d increase watei resources in freshwater lenses; rainwater collection a n d storage systems a t government anc community buildmgs; a n d a public awareness a n d education campaign to change user attitudes. On the O u t e r Islands, the c o m p o n e n t will support water resource assessments as w e l l as physical improvements in the water supply system in selected locations, a n d technical assistance to review the feasibhty o f non-polluting sanitation systems. Finally, the c o m p o n e n t wdl establish a n O u t e r Island community development grant scheme for roof catchment a n d sanitation. C o m p o n e n t 4: Capacity at island a n d c o m m u n i t y level (US$ 0.55 d o n , o f w h i c h US$0.31 million i s financed from GEF). Ths c o m p o n e n t will p r o v i d e technical assistance to the Ministry o f I n t e r n a l a n d Social Affairs (MISA) to include adaptation in the O u t e r I s l a n d Profiles, a n d training on climate risk management for local governments. Furthermore, i t will finance a pilot p r o g r a m o f small-scale

adaptation investments in two selected Outer Islands, i denti fi ed through participatory pl anni ng a n d im plem ent ed directly by communities.

5: Pro j e c t management (US$ 0.39 million, o f w h i c h US$0.23 million i s financed from GEF). This p ro j e c t c o m p o n e n t will provi de overall support to the project, i ncl udi ng project management, accounting, procurement, a nd running costs of the Project management Unit. I t will also support t h e m i d - t e r m a n d e n d -o f proj ect review o f IUP-I1 in v i e w o f the conti nui ng GoK Component

adaptation efforts. W h c h safeguard policies are triggered, if any? Ref: PAD D.6 Technical Annex 10 T h e E n v i r o n m e n t a l impacts o f th e p ro j e ct are expected to b e small. There m a y b e some small-scale construction associated with th e project, but h s i s not expected to have m a j o r negative environmental consequences. As a result, the proj ect has been rated Category B, requi ri ng a partial EA. However, t h e increasing a n d cumulative effects o f coastal infrastructure developments are hkely to b e important, a n d as such, it will clearly b e advisable to initiate a n environmental management p r o g r a m targeted at th e coastal development sector. An integrated coastal management p r o g r a m would examine th e current extent o f clunate change adaptation options a n d coastal construction activities a n d th e impacts (both beneficial a n d adverse) experienced to date. T h e environmental management p r o g r a m should consider t h e preparation of a N a t i o n a l EIA Trai ning P r o g r a m a n d a series of Codes of E n v i r o n m e n t a l Practice for use during t h e planning, design, construction, a n d operation as w e l l as maintenance o f al l roads a n d coastal works in I G b a t i . T h e two OPs triggered are OP4.01 a n d OP 4.12. D etai l ed studies and mi ti gati on options have been prepared in both cases. Significant, non-standard con&tions,

Ref: PAD C.7

if any, for:

B o a r d presentation: Loan/ c r edit effectiveness: None Covenants applicable to p ro j e c t implementation: None

STRATEGIC CONTEXT A N D RATIONALE

Country and Sector Issues (see Annex I j r details)

T h e Republic of I G r i b a t i i s one of the most isolated Least Developed Countries in the world. With a population o f almost 98,000 (2004 est.), it consists of 33 low-lying atoll islands spread over a vast area o f 3.5 d o n km2of ocean in the central a n d western Pacific. GNI per capita was US$970 in 2004, but has been declining due to a decrease in revenues from fishing licenses in 2002-2004. I G r i b a t i has one o f the hlghest poverty rates in the pacific, a n d only 10 O/o of the population i s formally employed in the cash economy. Nearly h a l f o f the population lives in South Tarawa, a highly dense area with a population growth of 3 percent p e r year. At current rates, the national p o p u l a t i o n will increase by 55 O/o by 2025, placing even greater challenges on the fragile environment. T h e poor atoll soil offers little potential for agricultural development, but the immense area of ocean encompasses some o f the richest fishmg grounds in the world, and, together with revenues from a phosphate-derived t r u s t fund, provides I G r i b a t i with i t s most i m p o r t a n t source o f revenue. I G r i b a t i i s one of the most vulnerable countries in the world to climate change a n d sea level rise. Most o f the l a n d i s less than 3 meters above sea level a n d on average only a f e w h u n d r e d meters wide, rendering retreat options untenable. T h e islands are exposed to periodic storm surges a n d to droughts, a n d are b e c o m i n g increasingly vulnerable due to high population concentration, accelerated coastal development, a n d environmental degradation. T h e 2000 World B a n k Regional E c o n o m i c Report estimated that by 2050 up to 25-54 O/o of areas in Bikenibeu, South Tarawa a n d 55-80 O/o of Buariki, North Tarawa, c o u l d become inundated. Climate change a n d sea level rise c o u l d also severely affect the m a i n Tarawa groundwater lens, increase the epidemic potential for dengue fever, decrease agricultural productivity, a n d &vert critical tuna resources from I G r i b a t i waters. Moreover, climate change i s threatening the marine ecosystems around IGribati, in particular through impacts on the coral reefs surroundmg the islands, with implications for subsistence a n d small-scale commercial near shore fisheries, failure o f the reef to act as a n effective b u f f e r o f wave energy, a n d increased island instabllity as sediment resources decline. Overall, in the absence of adaptation, I G r i b a t i c o u l d face economic damages due to climate change a n d sea level rise o f US$8-$16 d o n a year by 2050, or 17-34 O/o o f i t s

1998 GDP.

T h e G o v e r n m e n t o f I G r i b a t i ratified the UN Framework Convention on C h a t e Change (UNFCCC) in 1995, and continued to prepare a n initial N a t i o n a l C o m m u n i c a t i o n (1999) a n d N a t i o n a l Implementation Strategy (2003), with support from the UNDP-GEF f u n d e d Pacific Island Climate Change Assistance Programme. I G r i b a t i also participates in regional climate change cooperative activities, such as the Pacific Islands F r a m e w o r k for A c t i o n on Climate Change, Climate V a r i a b h t y and Sea-level Rise (2000). T h e I G r i b a t i Adaptation P r o g r a m PUP) started in 2003 under World Bank/Japanese assistance, a n d has been merged with the U N D P - G E F - s u p p o r t e d preparation of a N a t i o n a l Adaptation Programme of A c t i o n (NAPA). T h e 2004-2007 N a t i o n a l D e v e l o p m e n t Strateges identified c h a t e change as a key risk to economic growth, a n d p r o v i d e d the basis for the ongoing mainstreaming of adaptation in a l l relevant M i n i s t r y Operational Plans. T h e G o v e r n m e n t o f IGribati i s also strongly c o m m i t t e d to the other Multilateral E n v i r o n m e n t a l Agreements (MEAs), i n c l u d m g the Convention on Biodiversity a n d the Cartagena P r o t o c o l on Biosafety, the UN C o n v e n t i o n to Combat Desertification, and the S t o c k h o l m C o n v e n t i o n on Persistent Organic Pollutants.

Along with the other c h a t e - r e l a t e d r i s k s facing the country, Kiribati's ecosystems also experience

extreme vulnerability, particularly o f their plant, animal, soil a n d water resources, a n d their cultures as w e l l their traditional resource-use systems to outside h u m a n induced disturbance a n d over-exploitation.

G i v e n dus, successful atoll development requires that the integrated aspects o f the environment a n d social conditions, as w e l l as external conditions - in relation to stabhty of global economic systems are taken into account.

Ecosystems: I G r i b a t i i s h o m e to a number o f globally i m p o r t a n t marine biodrversity, including up to 200 species o f coral; hundreds o f fish species, including threatened species such as the H u m p h e a d wrasse (Cheilinus undulates) a n d Sicklefin L e m o n Shark (Negaprion acutidens); a n d several threatened turtle species, such as the endangered green turtle (Chelonia mydas) a n d critically endangered H a w k s b i l l turtle (Ehetmochelys imbricata). IGribati also provides a nesting area for a variety o f birds, i n c l u d m g vulnerable migratory species such as the Bristle-dughed Curlew (Numenius tahitiensis) a n d endangered species such as Icuhl's Lorikeet (Vini kuhh) a n d Phoenix Petrel (Pterodroma alba). In addition to the effects of climate change, coastal degradation a n d poor mangrove a n d coral reef management are endangering habitats for t h i s i m p o r t a n t biodiversity. In t h e absence o f adaptation, these impacts would translate in the l o s s o f globally important biodiversity, l a n d degradation, l o s s o f marine a n d coastal habitats a n d reduction in overall natural capital.

Status o f threatened ecosystems: Marine resources are generally considered abundant. T h e state o f abundance depends on the health o f the corals, w h i c h i s partly determined by the impacts o f higher temperatures on t h e physical condition o f corals. Coral bleachmg has b e e n observed in several parts o f IGribati, including the G i l b e r t Islands, particularly during El Niiio episodes, w h c h already feature the higher sea surface temperature that are expected to occur m o r e frequently w h e n climate change progresses. However, the extent a n d the severity of current coral bleaching are poorly known. With the assistance o f GEF, through UNDP, I G r i b a t i prepared i t s N a t i o n a l Biodiversity Strategy a n d A c t i o n P l a n (NBSAP) in 1998. I G r i b a t i i s presently also implementing the NBSAP Add-on Project, o f w h i c h extensive consultations with grassroots communities, as w e l l as inter-island the expected outputs are: (i) consultations with all islands o f IGribati (North, Central a n d South islands including the L i n e a n d )n e w NBSAP, for submission to the Conference o f the Parties (COP) to t h e Phoenix Groups); a n d (iia Convention on Biological Diversity (CBD) in early 2006. T h e b a s e h e on the status o f some o f t h e biodrversity i s s t i l l b e i n g established. G i v e n the potential threats of climate change to the biodrversity o f IQibati, IUP-I1 will contribute to biodiversity conservation in various ways, particularly by improving the attention a n d need for environmental sustainabhty as p a r t of coastal p r o t e c t i o n a n d asset management strategies, a n d for activities that reduce beach mining; all of w h c h are supported by strong participatory processes a n d public awareness campaigns. Moreover, I U P - I 1 would assist in building a monitoring system, particularly for the coral reefs, w h i c h can also b e adapted for other ecosystems, to strengthen the country's capacity to reduce the ecosystems' vulnerability; supplemented by enhanced access to n e w technologies in coral a n d ecosystem management (includmg through pilot experiments). T h e monitoring system i s expected to help streamline sustainable integrated systems management into adaptation processes, building on governance aspects that will support the enabling environment needed to make such activities successful, a n d i m p l e m e n t i n g the NBSAP objective o f integrating biodiversity conservation into the national development process.

Target ecosystems: Target ecosystems are primarily coastal a n d near-shore marine habitats,

particularly coral reef a n d mangrove systems, w h i c h h a r b o r valuable biodmersity. Specific target areas a n d ecosystems will b e selected during the f i r s t year o f the project, once MELAD has assessed t h e existing i n f o r m a t i o n i t has, a n d prioritized the ecosystems that are most easily supported by the I U P , a n d that would not b e duplicated by other on-going efforts in the country.

2. Rationale for Bank involvement T h e World B a n k h a s b e e n i n v o l v e d in c h a t e change adaptation in I G r i b a t i since 1999, w h e n i t f u n d e d a major study on vulnerability a n d adaptation for t h e Regional E c o n o m i c R e p o r t 2000. Since that review, a d a p t a t i o n a n d risk management h a v e b e c o m e o n e o f t h e pillars of t h e World B a n k p r o g r a m in t h e Pacific, with s u p p o r t to f i v e country-level projects’ a n d regional strategic assistance. T o g e t h e r with o t h e r donors a n d regional organizations, t h e World B a n k h e l p e d organize two High L e v e l A d a p t a t i o n Consultations in t h e Pacific in 2003-04, w h i c h c o n c l u d e d t h a t adaptation needs to b e mainstreamed into n a t i o n a l d e v e l o p m e n t plans, policies a n d budgets. T h e p r e p a r a t i o n phase o f t h e I G r i b a t i A d a p t a t i o n Program cI(AP-I - see box below), which was t h e f i r s t World B a n k pilot p r o j e c t f d y dedicated to adaptation in t h e E a s t A s i a a n d Pacific Region, put those principles to practice. T h e Bank‘s r o l e in a d a p t i n g e c o n o m i c mainstreaming c o m p l e m e n t s t h e ADB’s p r o g r a m on m a c r o - e c o n o m i c p l a n n i n g a n d w a t e r a n d sanitation, a UNDP p r o j e c t to strengthen decentralized governance, vulnerability m a p p i n g a n d p l a n n i n g activities f u n d e d by t h e E u r o p e a n Commission, a n d G E F - f u n d e d activities to i m p l e m e n t various M u l t i l a t e r a l E n v i r o n m e n t a l Agreements (see i t e m C.1).

Kiribati Adaptation Program

- Preparation Phase (KAP-I)

I U P - I , the preparation phase o f the I U P , had two major objectives: (i) To mainstream adaptation i n t o national economic planning; and (ii) t o prepare a p i l o t Adaptation Project t o reduce IGribati’s overall vulnerability t o climate change, climate variabhty, and sea level rise.

M o r e specifically, the project aimed to: (i) carrv out a National Consultation - w h i c h involved all major stakeholders in IGribati (government, NGOs, private sector, and communities) in reaching a consensus on national adaptation priorities and strategies to b e mainstreamed i n t o national economic planning, budget, and sectoral plans. I t also helped stakeholders discuss their roles in implementingadaptation options; (iiraise ) Public Awareness - summarise and convey reliable information o n adaptation and risk management to (a) hgh-level policy makers; and (b) the general public. This was achieved through simple briefings and seminars for Ministers and Parliamentarians on desirable policy measures, traditional meetings, radlo scripts, and the production of an information video; ( build i ) CaDacitv in Risk Management, introducing SOPAC’s Comprehensive Hazard and Risk Management process to I G i b a t i . C H A R M i s a process o f capacity building and planning that incorporates dlsaster and clunate risk management i n t o national development planning; (iv) mainstream AdaDtation into National Economic Planning - incorporating and institutionalizing the recommended mainstreaming activities into Government planning processes, procedures and regulations. T h i s activity built u p o n the results of the national consultation and capacity building to effectively incorporate adaptation and risk management i n t o economic planning, including the National Development Strategy, sectoral strategies, and public expenditures; and (v) undertake a Social Assessment, to (a) ensure that the national consultation i s fully participatory; (b) produce an assessment o f traditional adaptation options; (c) produce a checkhst of social issues relevant t o the Implementation Phase and ways t o address them. Implementation o f I U P - I has been successful and the project i s expected t o close within t h e f i r s t quarter o f 2006.

G i v e n i t s c o m b i n a t i o n of L D C a n d s m a l l i s l a n d status, extreme v u l n e r a b h t y a n d good progress in mainstreaming, I G r i b a t i i s ideally p o s i t i o n e d to b e c o m e o n e o f t h e f i r s t countries to i m p l e m e n t t h e n e w GEF Strategic Priority rrPilotinga n O p e r a t i o n a l A p p r o a c h to Adaptation”. Lessons learned from h s pilot are expected to b e c o m e i m p o r t a n t for g l o b a l strategies on adaptation investments, a n d h e l p m o v e

’

Kiribati Adaptation Project Preparation, Tonga Cyclone Emergency Recovery Project, Samoa Cyclone Emergency Recovery Project, and Samoa Infrastructure Asset Management Projects Iand 11.

int er nal incentives towards hazard risk prevention. I U P - I 1was accepted to the GEF’s pipeline on July 12,2004 a n d a p p ro v e d by th e GEF C o u nci l on N o v e m b e r 8-10,2005. Recognizing that adaptation i s a long t e r m concern, and as a direct follow-up to several studies a n d initiatives, a n d with support from th e World Bank, the G o v e r n m e n t o f I k i b a t i started the I G r i b a t i A dapt at ion P r o g r a m @UP),with the key goal o f reducing Kiribati’s vulnerabdity to c h a t e change, climate variabllity a n d sea level rise. T h e program i s envisaged to i n v o l v e t h e following phases. Phase I: Preparation (2003-2005; ongoing) - i s intended to mainstream adaptation into national economic planning, prepare a N a t i o n a l Ad a p ta ti on Programme o f A c t i o n a n d design a n intermediate pilot investments phase, IUP-11; Phase 11: Pilot Implementation (2006-2008) i s the focus of the current PAD. I t aims to i m p l e m e n t pilot adaptation measures, a n d consolidate t h e mainstreaming o f adaptation into national economic planning; a n d Phase III: Expansion (2009-2015) would gradually scale up the investments p i l o t e d u n d e r Phase I1 to cover al l maj or islands a n d vulnerable sectors o f IGribati. This phase m a y b e eligible for fundmg u n d e r one or m o r e o f the three gl obal funds for adaptation (LDC, Special C h a t e Change Fund a n d Ad a ptati on Fund), complemented by b a s e h e fmancing from t he GoICs own b u d g e t as w e l l as bilateral contributions. Care would b e taken to ensure that there would b e no duplication of activities fu n d e d u nder the GEF Strategic Priority a n d those funded under t he global funds, should they b e accessed. T h e progression o f I U P phases i s o u h e d in m o r e detail in A n n e x 1.

3. Higher level objectives to which the project contributes

T h e G o v e r n m e n t o f IGribati’s key objective i s to “enhance and ensztre the eqzlitable distribzltion development ben$ts according t o thepn’naples ofgoodgovernance”. T h e 2004-2007 N a t i o n a l D e v e l o p m e n t Strategies (NDS) hlghlight c h a t e change as a k e y risk to economic development, a n d provides for consultation-based measures for climate change adaptation. I t also emphasizes the need to care for the islands’ fragde env ir onm en t a n d for sustainable use o f natural resources. On the other hand, the Bank‘s n e w FourYear Strategy for the Pacific Islands, published in June 2005, identifies i m p r o v e d hazard risk management as o n e of the fi v e pillars contri buti ng to t h e economic growth a n d job creation. Thus, there i s a strong justification for I U P - I 1in both the national a n d World B a n k strategic priorities.

B. PROJECT DESCRIPTION (See Annex 4forfarther details)

1. Lending instrument T h e pr ojec t i s p ro p o s e d as a Sector In v e stment G r a n t (SIL). An Adaptable P r o g r a m L o a n (APL) was considered, but for two reasons i t was judged inappropriate: (i) GEF can no l onger c o m m i t up front to co-finance all th e phases o f a n APL, a n d although t h i s pol i cy does not close the door for subsequent phases, each phase must b e developed independently. So although t h e f i l l p r o g r a m m a y b e articulated, as the adaptation proposals can only justify incremental cost financing for t h e Phase in question; a n d (ii) financing arrangements u n d e r th e Least D evel oped Countries a n d / o r Special Climate Change Fund w h i c h I G r i b a t i hopes to access for Phase I11 o f the P r o g r a m - are s t i l l evolving, i t was better to prepare t h i s distinct phase a n d reconsider the l e n ding i nstrument at a later date.

Project development objective a n d key indicators

Project development objective T h e k e y objective o f the proposed Pilot Implementation Phase of IL4P (IL4P-11) i s to develop a n d demonstrate t h e systematic hagnosis of clunate-related problems a n d the design o f cost-effective adaptation measures, while continuing the integration o f climate risk awareness a n d responsiveness into economic a n d operational planning. Lessons learned from I U P - I 1 would b e used to p l a n the long-term national response to climate change envisaged for 2008/9 onwards, a n d would also b e relevant to m a n y other small island states a r o u n d the world.

Global environment objective T h e global environmental objective o f the I U P - I 1 i s to assist the GoI< in enhancing i t s capacity to p l a n a n d i m p l e m e n t adaptation measures to the climate-related issues facing the country, w h i c h W UI also reduce the detrimental impacts o f climate change on the fragile atoll ecosystems o f IGribati. This would b e achieved by providmg a n essential transitional stage in preparation for the long-term national response to climate change, including pilots that will generate experience for wider application in I G r i b a t i a n d other small island states. G l o b a l benefits would include i m p r o v e d management, conservation, restoration a n d sustainable use of biodiversity, such as i m p r o v e d protection a n d management o f mangroves a n d coral reefs w h i c h harbor a w i d e variety o f f i s h - on w h i c h IGribati i s highly dependent. A p a r t from reduced vulnerability to c h a t e change, climate v a r i a b h t y a n d sea level rise, national benefits would c o m e from stabilizing ecosystems a n d improving productive capacity o f mangroves a n d coral reefs w h i c h affect the availabdity o f fish catch, thereby reducing economic vulnerability o f those dependent on these activities a n d contributing to poverty reduction.

Key indicators include: 0 the establishment o f the Strategic N a t i o n a l Policy a n d R i s k Assessment Unit (SNPRA Unit) as t h e lead agency coordmating climate change adaptation a n d related strategic issues; 0

the percentage of climate-affected programs climate risk management; a n d

in M i n i s t r y Operational Plans that reflect systematic

consistent use of best practice in the application o f risk management, environmental assessment a n d options analysis to public infrastructure a n d vulnerability reduction measures.

T h e m a i n biodiversity outcome would b e the mainstreaming o f biodiversity concerns into the overall G o v e r n m e n t development efforts to reduce vulnerability to clunate change, clunate variability a n d sea level rise, as reflected, particularly, in the third outcome indicator. G i v e n the detrimental impacts o f m a n y o f the ad-hoc coastal protection efforts, such mainstreaming provides m a j o r benefits in terms of biodiversity conservation. T h e environmental assessment process would prominently include attention for biodiversity, includmg, in relation to the a d h t i o n a l threats posed to these biodiversity resources by climate change.

2. Project components IWP-I1 aims to change the way IQribati handles i t s planning and implementation o f regular activities so that they better take account o f climate risks. This requires progressive reinforcement o f adaptation-

related programs in the national Governmentâ&#x20AC;&#x2122;s budget a n d sectoral plans, in combination with a process o f participatory adaptation, involving island councils, NGOs, churches, communities, a n d individuals. T h e priority adaptation investments supported by I U P - I 1 will not only p r o v i d e i m m e d a t e results in terms o f reduced vulnerability, but will also help to demonstrate a n d p r o m o t e a climate risk aware approach to planning a n d design o f such activities. A f t e r IUP-11, these activities w d b e expanded .as p a r t of a continued adaptation program, both in scope a n d in terms o f addressing additional sectors.

Component 1: Polig, pLanning, and infomation (US$ 1.17 million). This c o m p o n e n t supports three core elements o f a l l adaptation efforts in Kiribati. T h e f i r s t element i s awareness raising a n d consultation, including technical assistance to review a n d redesign frameworks a n d processes for participation a n d awareness a t national and local level; two-yearly national consultations; regular adaptation-related participatory events; a newsletter, m e d a releases, educational material; a n d a n annual survey on public attitudes a n d awareness. T h e second element i s policy coordination a n d planning, including technical assistance for t h e n e w Strategic N a t i o n a l Policy a n d Risk Assessment Unit in t h e O f f i c e of T e Beretitenti; capacity building in Integrated Coastal Z o n e Management a m o n g k e y government staff; continued mainstreaming into M u u s t r y Operational Plans; and integration of adaptation into government development programs. T h e third element i s to generate scientific climate risk i n f o r m a t i o n a n d refurbish the capacity o f the Meteorological O f f i c e with n e w equipment a n d training o f staff. Component 2: Land zlse, ph_yscaL stmctzlres, and ecogstems (US$ 2. I7 million). This c o m p o n e n t w d contribute to reducing the vulnerability o f the coastline including key public assets a n d ecosystems, shifting t h e coastal management practice from a reactive, single technique approach to repairing damage as it occurs, to a preventative a n d m o r e technically varied risk mitigation strategy, i n c l u d i n g m o r e attention for environmental sustainability. M o r e specifically, the component would support technical assistance, workshops, a n d awareness materials for the development a n d application o f i m p r o v e d risk diagnosis a n d response methods, a n d improvements in planning a n d permitting processes to guide coastal zone activities, i n c l u d m g regulatory adjustments, awareness raising, a n d economic a n d environmental monitoring. Secondly, the component will produce design a n d construction guidelines, a n d apply t h e m by implementing protective measures at a sample o f p u b l i c assets that are at risk, i n c l u d i n g the national hospital a n d vulnerable coastal areas. Thirdly, the c o m p o n e n t includes monitoring a n d pilot activities to protect a n d restore coastal ecosystems a n d biodiversity affected by clunate change, climate variability a n d sea level rise, including the detrimental effects of current adaptation practices. Component 3: Freshwater resozlrces (US$ 2.16 million). Ths component includes t h e development a n d management o f freshwater resources to reduce their vulnerability to clunate variability a n d climate change. I t will provide support for technical assistance, awareness materials, a n d workshops to update the national water policy, i m p r o v e water resource management, a n d revise building codes to enhance opportunities for rainwater catchment a n d storage. G i v e n that water management problems are most acute on the central island, Tarawa, the c o m p o n e n t will also support t h e preparation o f a master p l a n for water resources on Tarawa, as w e l l as the implementation of pilot projects to identify a n d increase water resources in freshwater lenses; rainwater collection a n d storage systems a t government a n d c o m m u n i t y bddings; a n d a public awareness a n d education campaign to change user attitudes. On the O u t e r Islands, the component will support water resource assessments as w e l l as physical improvements in the water supply system in selected locations, a n d technical assistance to review the

feasibihty o f non-polluting sanitation systems. Finally, the component wdl establish a n Outer Island community development grant scheme for roof catchment a n d sanitation.

Component 4: Capacz9 at island and communi9 level (USJ0.55 million). This c o m p o n e n t w d provide technical assistance to the Ministry o f Internal a n d Social Affairs (MISA) to include adaptation in the O u t e r Island Profdes, a n d training on climate risk management for local governments. Furthermore, it will finance a pilot p r o g r a m o f small-scale adaptation investments in two selected O u t e r Islands, identified through participatory planning a n d implemented directly by communities. Component 5: Pmject management (UJJ0.39 million). This project component will p r o v i d e overall support to the project, i n c l u d m g project management, accounting, procurement, a n d running costs of the Project management Unit. I t will also support the m i d - t e r m a n d end-of project review o f I U P - I 1in view o f the continuing GoI< adaptation efforts.

3. Lessons learned and reflected in the project design

A number o f key lessons are starting to emerge from I U P - I as w e l l as from other hazard management initiatives in the Pacific: C h a t e change a n d sea level rise need to b e treated as a m a j o r economic a n d social risk, a n d not j u s t a long-term environmental problem. Addressing short-term vulnerabilities i s the best strategy to prepare for long-term impacts. Adaptation should preferably focus on no-regrets strategies. Rather t h a n site-specific structural solutions, adaptation should look for soft options, embedded in sustainable natural resources management. Adaptation needs to b e housed within a high level coordinating Ministry, w h i c h needs to effectively coordinate investments across sectoral Ministries a n d influence national development planning. Adaptation needs to b e fully integrated into national economic planning, a n d t h e preparation o f sectoral plans a n d budgets. Adaptation investments need to b e i n f o r m e d by a long-term process t h a t consultation with top-down planning a n d policy.

h k s bottom-up

w e l l crafted, country-specific consultation framework i s critical to ensure that community participation a n d awareness raising result in changes in behavior.

Alternatives considered and reasons for rejection T h e ‘do nothing’ scenario: In the absence o f adaptation, the economic, social a n d environmental

impacts o f climate change in I G i b a t i c o u l d b e severe, with potential economic damages averaging US$8-$16 million a year, equivalent to 17 to 34 percent o f the 1998 GDP (World B a n k 2000 Regional E c o n o m i c Report). G i v e n these enormous impacts; t h e potential for adaptation to reduce them; the fact that most o f the adaptation measures can b e based upon no-regret approaches; a n d the G o v e r n m e n t o f Kiribati’s strong will to act now, the do-nothing scenario was rejected.

T h e “one-off adaptation investments” scenario: A n o t h e r alternative would have been to focus only on a f e w specific adaptation investments, primarily in infrastructure. However, a programmatic approach was strongly preferred given that lessons from experience (in I G r i b a t i a n d elsewhere) show that such one-off adaptation investments are generally not t h e most effective, a n d are o f t e n unsustainable. Using a programmatic approach allows measures to b e integrated in government programs a n d b e h k e d to regulatory changes a n d raising awareness to change public behavior; i t also

allows institutional capacity to b e built; lessons learnt to b e used to refine follow-on activities; a n d successful pilots to b e replicated.

C. IMPLEMENTATION 1. Partnership arrangements (if applicable) T h e I U P - I 1 p r o j e c t would b e co-financed with the Australian Agency for International D e v e l o p m e n t (AusAID) a n d t h e N e w Zealand Agency for International D e v e l o p m e n t (NZAID), w h d e the E u r o p e a n Union wdl p r o v i d e parallel financing. T h e project wdl b e implemented in close collaboration with parallel initiatives being implemented and/or envisaged by UNDP a n d ADB, a n d several GEFsupported programs implemented by UNDP a n d UNEP.

Australian Agency for International Development (AusAID) and N e w Zealand Agency for International Development (NZAID): AusAID has released AUD$2 million into a Bank-managed t r u s t fund to finance South Tarawa water planning, remedial ac&ons a n d pilot projects, as w e l l as O u t e r Islands assessments a n d systems upgrades for Clunate Change Adaptation. NZAID i s planning to contribute NZ$ 1.5 million to IUP-11, primarily for activities relating to coastal infrastructure. T h e Australian Bureau of Meteorology a n d N e w Zealand Meteorological O f f i c e will b e closely i n v o l v e d in the upgrading o f clunate monitoring systems. T h e European U n i o n (EU): T h e EU would p r o v i d e I G r i b a t i a grant of Euro 2 million (implemented

by SOPAC) to establish a environmentally sustainable source o f aggregate from a naturally replenished site inside the lagoon, a necessary condition for the prohibition o f t h e opportunistic beach mining that i s severely increasing coastal vulnerability. IUP-I1 provides policy a n d planning support for the EU project, including environmental monitoring. T h e EU i s also supporting a SOPAC-led p r o g r a m for Water Governance in IQribati, w h i c h started in June 2005, a n d i s b e i n g closely coordinated with the freshwater management component of IUP-11. United Nations Development Programme ( U N D P ) : UNDP i s implementing a U S $ 1 million p r o g r a m to Strengthen Decentralized Governance in I G r i b a t i (SDGIK). IUP-I1 wdl benefit from the capacity building activities under t h i s project, a n d duplication will b e avoided through coordination by the Ministry o f I n t e r n a l a n d Social Affairs (MISA) a n d close collaboration with UNDP. Asian Development Bank (ADB): T h e ADB has been financing the Sanitation, Public H e a l t h a n d E n v i r o n m e n t I m p r o v e m e n t Project (SAPHE), composed of a US$10.24 d o n l o a n a n d U S $ 1.5 million grant. SAPHE, w h i c h i s drawing to a n end, w h i c h comprises a sustained p r o g r a m o f

improvements in water supply, sewerage, solid waste management a n d environment conservation. T h e freshwater management activities in I U P - I 1 will b e closely coordmated with the remaining work under SAPHE, a n d take account o f lessons learned. C o o r d i n a t i o n wdl primarily b e through the Ministry o f Public Works a n d Utilities. T h e ADB i s also providing technical assistance to develop O u t e r I s l a n d Growth Centers in the G i l b e r t a n d Phoenix islands. T h e r e are clear linkages to adaptation to climate change, a n d the ADB has indicated it wants to coordinate closely with I(AP to ensure o p t i m a l mutual benefits.

Global Environment Facility United Nations Development Programme 8z U n i t e d Nations Environment Programme (UNDP-GEF and UNEP-GEF): I h b a t i i s also undertakmg several

initiatives, supported by the GEF a n d implemented by UNDP a n d UNEP, to strengthen i t s capacity to implement various multilateral environmental agreements. G i v e n t h e close interrelationships between

adaptation to climate change and proper environmental management o f the fragde a t o l l environment, these initiatives closely fit the objectives a n d activities o f IUP-11. Besides the preparation of a NAPA, w h i c h has been closely integrated with I U P - I , UNDP-GEF i s also supporting a n add-on project to the N a t i o n a l Biodlversity Strategy A c t i o n P l a n (NBSAP) will help to i m p l e m e n t a country driven Clearing H o u s e Mechanism for the UN C o n v e n t i o n on Biodiversity (UNCBD), a n d identify capacity building needs for protection o f national biodiversity. UNDP-GEF i s also preparing a N a t i o n a l Capacity Self-Assessment (NCSA) project, w h i c h consists of a self-assessment of t h e current capacity constraints to b e able to address global a n d local environmental issues. As p a r t o f a regional UNDP-GEF supported International Waters Program (IW),executed through SPREP, K i r i b a t i established requirements for marine protected areas, sustainable coastal fisheries, and p r o t e c t i o n o f freshwater resources; a n d undertook several community-based waste management pilots. UNEP-GEF i s supporting I(iribati to prepare a N a t i o n a l Biosafety F r a m e w o r k (NBF) under the Cartagena P r o t o c o l on Biosafety, a n d a N a t i o n a l Implementation P l a n (NIP) for the Stockholm C o n v e n t i o n on Persistent Organic Pollutants (POPS). Close coordination, complementarily and derivation o f m u t u a l benefits between I U P - I 1 a n d these other G E F - f u n d e d projects will b e ensured through the E n v i r o n m e n t a l Conservation Division (ECD) in MELAD, w h i c h i s responsible for the implementation of all M E A s a n d related projects, but also provides technical support for interdepartmental climate change issues under IUP-11,. Furthermore, MELAD/ECD will b e responsible for a l l I U P - I 1 activities that i n v o l v e environmental regulations a n d monitoring. T h e projects m e n t i o n e d above primarily focus on analysis, awareness raising, a n d policy development. I U P 11â&#x20AC;&#x2122;s focus on implementation a n d close linkages to national economic p l a n n i n g wdl p r o v i d e excellent opportunities for mainstreaming of global environmental issues through t h e coordinating mechanisms set up for adaptation to climate change.

2. Institutional and implementation arrangements (see also A n n e x 6) O v e r a l l du-ection a n d coordination o f the project will b e p r o v i d e d by the O f f i c e o f T e Beretitenti (Office o f the President, OB) through t h e Strategic N a t i o n a l Policy a n d &sk Assessment Unit (SNPRA Unit), w h c h i s b e i n g established within the OB. T h e Secretary o f the OB wdl h e a d the SNPRA Unit, a n d act as Project D i r e c t o r for IUP-11. In addition, the 2006 budget provides for two senior (Director or D e p u t y Secretary Level) policy positions within the SNPRA Unit. T h i s capacity will b e strengthened by IUP-11, w h i c h will provide for a third senior position (long-term consultant), responsible for coordination o f adaptation a n d climate risk management throughout t h e government, a n d also act as the I U P - I 1Project Coordinator. T h e Project management Unit (PMU), w h i c h wdl carry out a l l day-doday project management, i s headed by the Project Manager, who reports to t h e Project Coordinator, a n d also includes a Finance/Accountant, a Procurement Officer, a m o r e general Project Officer, a n d a Project Assistant. T h e quality o f project implementation will b e ensured by the attention a n d capacity built during I U P â&#x20AC;&#x2122; s preparation phase. I U P - I project management i s currently carried out by a n a l l IK i r i b a t i team, w h i c h has substantial experience in World B a n k financial management, r e p o r t i n g a n d procurement procedures. Both the Project Manager a n d the F i n a n c e l A c c o u n t a n t are expected, to continue in the PMU for IUP-11, t h u s ensuring continuity a n d retention o f capacity. Specific components o f I U P - I 1 will b e managed by k e y line ministries, in particular the M i n i s t r y o f Environment, Lands a n d Agriculture (MELAD), t h e M i n i s t r y o f P u b l i c Works a n d Utilities (MPWU), the M i n i s t r y o f Internal a n d Social Affairs (MISA), t h e M i n i s t r y of Fisheries a n d M a r i n e Resources D e v e l o p m e n t (MFMRD), a n d the M i n i s t r y of Communications, Transport, a n d Tourism D e v e l o p m e n t

(MCTTD) .

Project activityplanningfor implementation: At the higher level, activity planning would b e at the level o f the Ministry Operational Plans (MOPs), specifically to ensure that there i s mainstreaming o f adaptation at the operational level. T h e MOPs are a key planning tool for a l l G o v e r n m e n t Ministries a n d public enterprises; a n d b e n e f i t from outputs of the N a t i o n a l Consultations. T h e MOPs, will incorporate the add-on investments of IUP-11. T h e enhanced MOPs to b e implemented from 2006 represent t h e f i r s t generation of MOPs with comprehensive mainstreaming o f adaptation priorities across all climate relevant programs

in the key ministries.

E v e r y year, a P r o g r a m o f Activities to b e fmanced by the project will b e prepared prior to implementation. T h e Program o f Activities would b e prepared by the PMU; a n d submitted to the OB/MFED a n d t h e B a n k for concurrence, a n d shared with AusAID a n d NZAID for comments and suggestions. T h e P r o g r a m of Activities must take into account t h e relevant Procurement Plan, w h i c h becomes a n appendix. Ths one-time up-front non-objection should m i n i m i z e delays in implementation. Exceptions that m a y require a n additional step relate to large investment packages for w h c h m o r e complex economic analyses requiring a comparative cost-benefit analysis would b e done; for example, the r e h a b h a t i o n of the hospital a n d the causeway. Although t h e TA to b e h i r e d would b e expected to carry out the required analyses, it i s i m p o r t a n t that t h e N a t i o n a l E c o n o m i c a n d Planning O f f i c e (NEPO) in MFED, who routinely carry out such analyses, are consulted from the activitiesâ&#x20AC;&#x2122; inception stage. T h e National Adaptation Steering Committee (NASC), w h i c h was established during IUP-I, i s responsible for promoting a n d monitoring coordination a m o n g project activities across t h e implementing agencies, including the utihzation a n d sharing o f technical expertise. T h e NASC i s chaired by the Secretary (S) o f the OB, a n d includes higher level officials from all key Ministries, as w e l l as representatives o f the K i r i b a t i C o u n c i l o f Churches, the I G r i b a t i Association o f NGOs (IUNGO), t h e national womenâ&#x20AC;&#x2122;s organization All W o m e n o f I G r i b a t i (AMI<), a n d the I G r i b a t i Chamber o f Commerce. T h e NASC will continue to p r o v i d e overall policy analysis, quality c o n t r o l a n d advice to the GoK on matters related to climate risk management, covering both NAPA a n d I U P - I 1 issues a n d activities. T h e Climate Change Sta& Team (CCST), also established during IUP-I, contains technical officers from a l l key departments affected by climate risks. T h e CCST will continue to p r o v i d e expert analysis a n d technical advice to the GoI< on climate-related matters, as w e l l as coordmate scientific activities relevant to the planning and execution of the NAPA a n d IUP-11. O v e r the course of I(AP 11, the detailed institutional a n d implementation arrangements m a y evolve for various reasons, such as, the need to take account o f n e w mechanisms for increasing consultation w i h various ministries in the GOK; the need to enhance coordmation between stakeholders in general; a n d for other reasons that m a y require changes to b e made to the existing coordination framework. For example, I U P I1 calls for the recruitment o f a Project Coordinator, reporting directly to the Secretary of the Office of T e Beretitenti, who wdl monitor t h e implementation of I U P I1 and ensure regular consultation on a continuing basis with a l l key stakeholders, i n c l u d i n g OB, other GOK ministries and international donors.

In addition, the GOI< recently established a n O u t e r Island Project Coordinating Committee (OIPCC), chaired by the Secretary, M i n i s t r y o f I n t e r n a l a n d Social A f f a i r s (MISA), a n d comprised also o f the Secretaries o f other Mmistries delivering government services to outer islands. U n d e r i t s terms o f reference, the OIPCC meets monthly to review the status o f projects in the outer islands; recommends follow-up actions as m a y b e required on each project; ensures cost effective a n d efficient implementation of project related activities; ensures compliance o f a l l projects with G o v e r n m e n t policies; and reports monthly to Cabinet on the status o f all outer island projects.

In v i e w of t h e foregoing arrangements, over the course o f the proj ect OB m a y review t h e scope, tasks a n d m em be rs h i p of existing coordinating mechanisms that support I(AP 11, to ensure t h a t these mechanisms r e m a i n relevant a n d effective. T h e ins t it ut i o n a l re l a ti o n s h p s are illustrated in the following diagram:

SNPRA: Strategic National Policy and Risk Assessment U n i t

Fzmz'sflow: On receipt o f funds, th e Ministry o f Finance a n d E c o n o m i c D e v e l o p m e n t (MFED) will warrant financial provision to the OB from the D e v e l o p m e n t Fund in accordance with p u b l i c finance law. T h e OB (through th e PMU) will allocate resources to proj ect components to fund specific pr oject activities to b e carried out in accordance with the annual Ministry Operational Plans (MOPs) of h e ministries. These activities will appear in MOPs u n d e r the appropriate &visional programmes o f ministries in substantially th e same form as they appear in t h e P roj ect I m p l e m e n t a t i o n Plan. T h e Ministry o f Finance a n d E c o n o m i c D e v e l o p m e n t (MFED), a n d particularly the N a t i o n a l E c o n o m i c P lanning O f f i c e (NEPO), will play a n i m p o r t a n t r o l e in the conti nued mainstreaming o f adaptation into MOPs a n d th e 2008-2011 NDS, MOPs monitoring, as w e l l as in economic appraisal o f adaptation options.

Regarding disbursement, project funds w d flow through the Governmentâ&#x20AC;&#x2122;s b u d g e t a n d accounting processes. T h e G o v e r n m e n t N u m b e r 4 Development Project B a n k A c c o u n t will b e used to receive advance funds from the World B a n k in AUD. Government A c c o u n t i n g systems w d account for the advance a t a n aggregate level but detailed reporting will b e p r o v i d e d through a parallel management i n f o r m a t i o n system maintained by the project implementation unit. There i s also a need to ensure that adequate accountability mechanisms are established for pilot small-scale O u t e r Island adaptation investments a n d t h e proposed O u t e r Island grant scheme for c o m m u n i t y development for water and sanitation. As such, disbursements for these activities would take place only once Procedures Manuals for t h e implementation o f these activities have been developed, a n d are o f a quality satisfactory to the

Two disbursement categories will be used for the project; one that will be followed by a l l the project, with the exception o f the O u t e r Island community development grant scheme for roof catchment a n d sanitation (in support o f the revolving fund for the 0 1 s household scheme for roof catchment a n d sanitation), for which no disbursements would b e allowed from t h e grant prior to the development a n d approval of a n Procedures Manual, w h i c h demonstrates how t h e funds would b e used a n d accounted for. Expenditure reporting will be against agreed annual activities which will determine eligibility. Bank.

3. Monitoring and evaluation of outcomes/results O v e r a l l project monitoring a n d reporting will b e t h e responsibhty o f the OB, w h d e the day to day monitoring a n d evaluation activities would b e carried out by the PMU in t h e SNPRA Unit. As almost

all project activities will b e integrated a n d reflected in regular Ministry Operational Plans (MOPS), project monitoring will primarily b e based upon MOP progress reports with financial i n f o r m a t i o n p r o v i d e d by the PMU, complemented by project-specific results monitoring (see A n n e x 3). MOP progress reports are normally required at the e n d of 4 2 (mid-year) a n d 4 4 (end year), but for IUP-11funded activities additional progress reports will b e required at the e n d o f Q1 a n d 43. T h e h a l f yearly a n d yearly reports would contain i n f o r m a t i o n on the projectâ&#x20AC;&#x2122;s progress; financial a n d physical, with an explanatory write-up. Quarterly reports from line ministries would b e mainly on fund usage a n d will b e collated by the PMU. A consolidated quarterly IUP-I1 progress r e p o r t will b e submitted to t h e NASC, Cabinet, MFED a n d the WB. T h e reports would b e shared with AusAID a n d NZAID through the Bank. Quarterly reports will also contain implementation a n d work plans for t h e c o m i n g 6 months. H a l f w a y a n d at the e n d o f the project, a n evaluation o f the project will b e conducted, primarily aimed at identifying lessons learned from t h e pilot implementation phase, w h c h c o u l d b e applied to the expansion o f the I G i b a t i A d a p t a t i o n Program. Both the PMU a n d t h e I s l a n d D e v e l o p m e n t Committees w d regularly monitor progress in t h e implementation o f t h e small scale adaptation investments. Implementation review m i s s i o n s w d b e carried out, at least twice a year, a n d they would p r o v i d e an opportunity for the donors a n d the G o v e r n m e n t to review project progress; develop recommendations a n d a n A c t i o n Plan based on w h c h issues identified would b e addressed. T h e World B a n k would invite AusAID a n d NZAID to participate in t h e implementation review m i s s i o n s . Prior to commencing the m i s s i o n s the government a n d the donors would agree on the implementation aspects to b e reviewed.

4. Sustainability and Replicability Sustainability: There are three k e y factors that increase the potential for sustainability o f t h e pilot adaptation investments. First, the national consultation a n d mainstreaming are directly l i n k e d to the national planning process. In I U P - I , t h e national consultation was used not only to derive inputs for

adaptation investment, but also to produce inputs to the 2004-2007 N a t i o n a l D evel opment Strategy a n d t he Ministry Operational Plans. T h e national awareness a n d o w n e r s h p o f the concepts of vulnerability a n d adaptation obtained through the two N a t i o n a l Consultations will also increase t h e lik ehhood o f sustainability of activities implemented under the project. This close link i s expected to continue in IUP-11: biennial N a t i o n a l Consultations w d bring key stakeholder groups together to share their experiences, refine priorities, a n d encourage policymakers to attend to adaptation issues. As bottom up p l a n n i n g a n d top down p ro gram formul ati on becomes progressively institutionahzed within the national p l a n n i n g process (and given that m a n y of the concerns o f the O u t e r Islands relate h e c t l y to vulnerabllity reduction) adaptation investments a n d concerns are expected to flow naturally from t h i s process. Second, t he p ro p o s e d placement of I(AP within the N a t i o n a l Strategc k s k Management Unit under t he umbrella o f t h e O f f i c e o f T e Beretitenti i s expected to give i t a permanent institutional â&#x20AC;&#x2DC;homeâ&#x20AC;&#x2122; with direct access to the D e v e l o p me n t Coordination C ommi ttee (composed o f Secretaries o f all G o v e r n m e n t Ministries) a n d with h e c t responsibility for risk management. T h e access a n d linkage to high level p o l i c y makers i s a n i m p o r t a n t asset if the Unit i s to f u n c t i o n at t h e level of coordination envisaged, in particular driving the preparation a n d monitoring o f t h e MOPs a n d coordmating broader adaptation activities w h i c h transcend IUP-11, i ncl udi ng donor a n d stakeholder efforts for adaptation.

Thu-d, a n d with th e exception of the island pilots, only adaptation investments w h i c h are clearly identified as n a ti o n a l priorities in th e Ministry Operational Plans will b e funded. T h i s , a n d the fact that t he G o v e r n m e n t will b e c o n tri b u ti n g a substantial proportion o f the funding for these investments, ensures that the programs are fully institutionalized within the respective Ministries.

As earlier discussed, w h d e th e G o v e r n m e n t i s expected to cover a substantial proportion o f the costs o f av oidm g maladaptation (under th e baseline scenario), the alternate scenario assumes that a m o r e complete treatment of these options wdl b e carried out. T h e expectation i s therefore that, the absolute G o v e r n m e n t c o n tri b u ti o n to sectoral investments i s likely to b e higher in I U P - I 1 than in the future, given that m u c h o f th e i n i ti a l investment will focus on current vulnerabilities a n d avoidance of maladaptation. And ifclimate change impacts intensify, the need for incremental financing m a y also b e higher in t h e future. However, th e process o f mainstreaming adaptation w h i c h was p i l o t e d under I U P - I would h e l p ensure that baseline investments would concurrently increase to cover current-day mal-adaptation, thereby increasing th e overall sustainability o f the program. Moreover, the priority investments p ro p o s e d for financing will b e activities that entail significant incremental development costs in hel p i n g I e i b a t i adapt to the long-term effects of climate change a n d sea level rise t hat fit w i h a coherent p ro j e c t that will also deliver gl obal envi ronmental benefits. ImDortance of technical assistance to i m d e m e n t a t i o n a n d sustainabllitv: T h e proj ect contains a relatively high share of technical assistance, w h i c h i s unavoidable gi ven t h e current l i m i t e d technical capacity to address climate change. I U P - I p r o v i d e d the building blocks for engagement with t he communities a n d p ri o ri ti z a ti o n of adaptation strategies. I U P - I 1 will build on t h i s base to increase capacity for i m p l e me n ti n g th e strategies i denti fi ed in IUP-I, i n c l u d i n g i ntegrati on into regular work in t he key line ministries. Furthermore, the awareness a n d behavior change activities that were started under I U P - I need to b e expanded a n d approached m o r e systematically to address the issues i dent if ied under the scoping consultations u n d e r IUP-I, to generate a real behavioral change (partly co-aligned with better provision o f alternative solutions to adaptation-related problems, such as beach mining). O n c e all o f these processes are in place, and government staff has i m p l e m e n t e d adaptation-related programs as p a r t o f their regular responsibilities within their Ministriesâ&#x20AC;&#x2122; MOPs, they should b e able to continue to apply these i m p r o v e d standards in their work. Furthermore, 85% o f the total TA t i m e i s

allocated to n a t i o n a l consultants, coupled t o k t e d inputs o f international TA for i n i t i a l training of these national consultants and their government counterparts. In t h i s way, t h e capacity built in national consultants will r e m a i n available to t h e government.

Through the I U P , K i r i b a t i would b e one o f the f i r s t countries in the world to pilot adaptation implementation. Hence, lessons learned from I U P (some of w h i c h are listed in section B.3) will b e hlghly relevant for other Least Developed Countries a n d small island economies. T h e proposed project, the soon to close IUP-I, t h e NAPA preparation, a n d various pieces o f World Replicability:

B a n k supported sector work have included m a n y provisions for the sharing o f lessons learned. In the past years, t h e G o v e r n m e n t o f I h i b a t i has been i n v i t e d to present the project at t h e UNFCCC COP in Buenos Aires a n d a t the p r e - U N F C C C SBI L D C consultations about the L D C fund. Lessons learned have also been incorporated in a World Bank supported Risk Management Policy N o t e prepared for t h e Pacific region, targeting high level decision makers in the Pacific and the donor community. As p a r t o f t h e d m e m i n a t i o n o f the Policy Note, participatory country level profiles will b e prepared and discussed with interested countries, the results of w h i c h should enrich the NAPA preparation process, and/or adaptation in the countries selected.

At the national level, lessons learned from I U P - I a n d the NAPA have already contributed significantly to the preparation of the Climate Change Adaptation (CCA) strategy that was recently adopted by the

Cabinet, a n d will now b e used as a planning tool for future adaptation activities in t h e country, including mainstreaming into the MOPS. These lessons will certainly also contribute to the AusAID/NZAID country assistance strategy that i s being prepared; a n d i s expected to p a y ample attention to p o p u l a t i o n policies a n d u r b a n renewal issues (both‘ o f w h i c h are closely l i n k e d to IG-ibati’s adaptive capacity in the face of climate change). I U P - I 1 also includes provisions for periodic evaluations to inform the expansion phase of the adaptation program, as w e l l as other pilot adaptation initiatives in the region a n d beyond. I U P - I 1 would also include substantial domestic replicabdity, as i t would provide the foundation for scaling up a n d expanding t h e pilot adaptation investments to t h e national level under the expansion phase (KAP-

III).

5. Critical risks and possible controversial aspects’ Risks Faihre or del9 in establishing SNPRA Unit the OB, MFED a n d PSO. As specified in GoKs 2005 CCA strategy statement, adaptation depends on strong, politically-supported, focused and effective coordination by the newly-established SNPRA Unit under the umbrella o f the OB for i t s success

Failure to secure support and collaboration Of&y CCA Ministties and the communz~.A n unambiguous spokesperson or standard-bearer for C C A (and so f o r KAP-11) within the political government does not as yet exist.

Risk M i t i g a t i o n Measures A clear recognition and commitment from the

responsible agencies to the importance o f a timely creation a n d staffing of the SNPRA Unit. O n c e established, the SNPRA Unit should provide continued advocacy to s u s t a i n p u b l i c a n d political support for systematic CCA. T h e OB i s responsible for the creation o f the SNPRA Unit. Continue to advocate a n d b d d on the widespread concern about possible effects of climate change. Capacity budding a n d advocacy work to create a whole-of-government- and indeed, whole-of-community-collective will t o adaptation. T h e OB, through the SNPRA Unit would lead the policy dialogue; and the

Risk Rating with Mitigation

Failure to strengthen the capah& motivation andfunding of localgovernment - an i m p o r t a n t issue, given that m u c h o f the physical response needed t o adapt t o climate change lies within the ambit o f face-to-face contact o f households, communities and enterprises with agencies o f government

T h a t serious storm damage orprolonged drought during the p e r i o d of KAP-I1 m a y force GoK to take short-term r e m e l a l action for humanitarian and political reasons, that would divert resources and public support away from the longer-term a n d ultimately m o r e cost-effective ways o f reducing vulnerability b e i n g developed under t h i s CCA-based K A P - I 1

Ministries through their MOPSwould contribute to coordinated CCA activities. Develop effective, responsive local government capacity to manage CCA across the country, by budding the necessary capacities in local government - activities w h i c h have already began with the assistance of UNDP and MISA through their long-term program, to w h i c h a d d t i o n a l resources will b e allocated under KAP-I1 to reinforce and assist t h i s process.

Build capacity o f the agencies to b e mentally a n d physically prepared to respond promptly to

deal with immediate catastrophes, even while developing and p r o v i n g longer-term solutions-using appropriate technical designs in the immediate response that enable integration of the necessary short-term repairs into the longer-term climate-proof upgrade process.

6. Grant conditions and covenants Effectiveness condtions: T h e GEF G r a n t wdl include as a condi ti on o f effectiveness:

FY06 budget

that the DCC would approve the p roje ct a n d ensures i t s i ncorporati on into t h e

adopt io n o f th e Project Imp l e m e n tat ion P l a n acceptable to the B a n k by t h e government

adopt io n o f th e draft Operations M a n u a l for the project a n d the pilot small scale 01 adaptation investments schemes procedures m anu al acceptable to the B a n k by the government.

Financial covenants: 0

T h e PMU shall m a i n ta i n a management i n f o r m a t i o n system acceptable to t h e B a n k as a supplement to t he Governmentâ&#x20AC;&#x2122;s accounting system T h e pr oj e c t financial statements shall b e a u h t e d by auditors acceptable to t h e B a n k a n d on terms of reference acceptable to the B a n k T h e audits shall b e conducted in accordance with International Standards on issued by the IFAC a n d on terms o f reference acceptable to the B a n k

Auhting (ISA) as

T h e annual audited statements a n d audit r e p o r t shall b e p r o v i d e d to t h e B a n k withm s i x months of the e n d o f each fiscal year a n d a t th e closing o f the proj ect

N o disbursements in support of th e revol vi ng fund for t h e O u t e r I s l a n d community development grant scheme for roof catchment a n d sanitation would b e allowed from t h e grant prior to the development a n d approval o f a Procedures Manual, w h i c h demonstrates how the funds would b e used a n d accounted for.

Other covenants: 0 0

Prepare a n d submit a r e p o r t of th e monitoring a n d evaluation results at m i d - t e r m Take all measures necessary to ensure that t h e Project i s i mpl emented in full compliance with the provisions of the Strategic E n v i r o n m e n t a l Assessment a n d the P roj ect I m p l e m e n t a t i o n P l a n a n d Operations M a n u a l in a timely manner.

D. APPRAISAL SUMMARY 1.

Economic and financial analyses

Economic bent@ will derive from i m p r o v e d environmental management, i n c l u d m g the reduct ion in coastal zone degradation, i m p r o v e d water resources management; a n d a reducti on in l o s s of biodiversity, habitats, a n d f i s h resources. In addition, the i ntended o u t c o m e i s that K i r i b a t i wdl b e equipped with t h e field-tested engineering designs, information, analytical capacity a n d technical k n o w how needed to adapt successfully to climate change in the years ahead. Through the use o f these better technologies, p u b l i c investments should require less maintenance as they become better able to withstand climate variability, climate change, a n d sea l evel rise. There are also additional benefits expected from t h e development a n d implementation o f alternative livellhoods by the communities, w h i c h should eventually result in a better standard o f living for t h e beneficiaries. A m o r e comprehensive economic analysis can b e found in A n n e x 14. Fiscal impact: because th e ma j o ri ty o f the activities to b e f u n d e d are already i ncl uded as p a r t of the MOPS,t he p r o j e c t would not represent a significant additional fiscal b u r d e n for the country. Instead, the pr ojec t simply provides th e additional financing that allows the government to expand a n d reorient t he existing programs to reduce vulnerability to climate change. T h e G o v e r n m e n t has already identified provisions in th e b u d g e t for th e existing programs at a n estimated cost o f US$ 2.3 milhon, w h i c h represents 35% o f th e to ta l p ro j e c t cost of US$ 6.6 million (including contributions by GEF, AusAID a n d NZAID). M e d m m t e r m fiscal i m p a ct o f the proj ect i s likely positive as lessons learned are applied in design standards a n d coastal p ro te c ti on a n d building practices, as w e l l as the priority national investments themselves. T h e use of i m p r o v e d methodologies should result in better adaptation to climate variability, clunate change, a n d sea level rise, t h u s reduci ng costs to respond to those impacts. With respect to coastal l a n d use, t h i s should result in l onger l i f e spans a n d l o w e r maintenance for key public assets. Furthermore, th e priority national investments in t h e water sector should reduce the disease b u r d e n a n d associated health service costs related to poor water quality.

2. Technical IUP-I1 will b d d upon technical guidance developed during I U P - I , i ncl udi ng state-of-the-art

assessments o f adaptation options for coastal management a n d t h e water sector. In addition, the pr oject will c om pile a comprehensive c h a t e risk profile, w h i c h will budd upon t h e current set o f climate scenarios f o r.IGri b a ti . T h e upgradmg of the Meteorol ogi cal O f f i c e will i ncl ude the purchase a n d upgrading o f m e t e o r o l o g c a l measurement instruments w h i c h will b e used to gather key data needed for monitoring a n d early warning. For coastal management, t h e i n i t i a l phase o f the proj ect wdl p r o v i d e additional resources to refine approaches for preventative rather t h a n responsive coastal management, based upon well-established methodologies for integrated coastal zone management a n d integrated assessment o f adaptation options. Climate-proofing of p u b l i c assets will in particular i ncl ude analysis o f soft, i.e., non-engineering solutions. D e s i g n parameters for protecti ve works will b e based upon f ield work a n d study o f oceanographic data. T h e sustainable lagoon-based aggregate extraction i s p a r t o f a n associated EU-SOPAC project, w h c h will p r o v i d e the appropriate TA to update a 1998 feasibility study, inc ludi n g extensive technical a n d environmental assessments before any physical investments are undertaken. In the water sector, most investments will b e based upon well-established technologes while m o r e experimental pilot activities - particularly the groundwater recharge a n d the feasibility study for a n artificial water lens, w h c h were based on successful examples in other atolls - will require further technical inputs a n d evaluation for application in IGribati. The small-scale adaptation activities at the c o m m u n i t y level are g w d e d by a clear Procedures M a n u a l for t h e pilot small-scale adaptation

investments, w h i c h describes the participatory planning that should result in activities that are technically robust a n d can b e implemented largely on t h e basis of local knowledge. Lessons learned from the island adaptation pilot activities will b e used to update the Procedures Manual, w h c h c o u l d subsequently b e used for all the islands of IGribati. Such updates might include changes in positive and negative l i s t s that define the scope of the potential investments, or specific technical guidance on the implementation o f particular activities. All pilot investments in I U P - I 1 wiU b e closely m o n i t o r e d and lessons learned will b e documented a n d taken into account in the design o f expanded adaptation investments after IUP-11.

3. Fiduciary Accredited senior specialists assessed the governmentâ&#x20AC;&#x2122;s financial management capacity during p r o g r a m preparation a n d found that satisfactory a n d acceptable systems are in place to ensure smooth implementation o f the project. T h e core financial management arrangements for t h e p r o j e c t will make use o f the G o v e r n m e n t of Kiribatiâ&#x20AC;&#x2122;s financial management a n d budget systems supplemented by a parallel i n f o r m a t i o n system to provide the necessary level o f detailed reporting. In order to maintain the Parallel i n f o r m a t i o n system the PMU will require one additional staff m e m b e r shortly after the commencement o f the project. With regards to procurement, the general p r o c u r e m e n t assessment shows that additional procurement capacity i s needed. In particular, it was n o t e d t h a t t h e N a t i o n a l Procurement A c t i s quite recent (October 2002), a n d the implementing agency has no dedicated procurement staff. And although capacity has been built in the I U P office under t h e ongoing I U P - I project, t h i s has been lunited to recruitment o f individual consultants a n d p r o c u r e m e n t o f goods. U n d e r the proposed project, the procurement scope db e significantly expanded, as dt h e level of interaction with other government agencies. Briefly, the following activities to strengthen implementation have been agreed: (a) planning ahead for procurement activities; @) contracting of a Procurement O f f i c e r in the PMU; a n d (c) contracting o f a Procurement Specialist (to assist in capacity development).

4. Social Key social issues relevant to the project objectives and social development outcomes

Improving the a b f i t y o f the I-IGribati to adapt to the stresses presented by changes as a result o f

climate change i s the key social outcome expected under the project. T h e m a i n strategy for achieving t h i s i s to i m p r o v e the a b h t y of people at the l o c a l level to interact with officials at island a n d national level in ways that allow integration of local level concerns a n d strategies with island a n d national level responses. In t h i s respect, IUP-I1 i s building upon a series of N a t i o n a l Consultations a n d a Social Assessment (SA) that examined traditional I G r i b a t i society, l a n d tenure patterns, social a n d cultural organization, political organization a n d patterns o f social a n d cultural adaptation over time, including in-depth case studies of five islands.

Participatory Approach T h e key stakeholders are the people o f IGribati, local level groups, i n s t i t u t i o n s a n d organizations, the Island level political a n d adrmnistrative structures and officials, national level institutions, c i v i l society a n d donor agencies. T h e people o f IGribati at the local level have been i n v o l v e d in the design o f I U P I1 through national consultations and a social assessment during ICAP-I (see above). T h e N a t i o n a l Consultations brought together C h i e f Councilors, council clerks, government staff on the islands, unimwane representatives (traditional elders), w o m e n a n d youth from each o f t h e islands of IGribati. T h e f i r s t round o f consultations resulted in a catalogue o f the kinds o f changes experienced over the last 20-40 years, traditional coping mechanisms; a preluninary assessment o f areas where assistance would b e needed; a strategy for further local level consultations; a n d a shared d e h t i o n o f vulnerabllity a n d adaptation. T h e second round o f consultations resulted in prioritization o f vulnerabilities; identification o f adaptation strategies; a n d a classification o f those strategies by level o f urgency. Some urgent strategies c o u l d b e undertaken by communities themselves, for t h e others the consultations designated responsibility to specific government ministries.

Consultations and collaborations with NGOs and other civil society orgamzations

T h e N a t i o n a l Adaptation Steering Committee includes representatives from t h e I G r i b a t i Association of N o n - G o v e r n m e n t a l Organizations (IUNGO), the national womenâ&#x20AC;&#x2122;s organization - All W o m e n o f K i r i b a t i (AMAK), the I G r i b a t i C o u n c i l o f Churches, a n d the I G r i b a t i Chamber o f Commerce. I(ANG0 has participated in several v i s i t s to O u t e r Islands in order to consult with village level II(iribati to elicit their views a n d concerns with respect to climate change. NGOs a n d churches, w h i c h occupy a central social position in I G r i b a t i society, are expected to play a n i m p o r t a n t r o l e in the design a n d implementation of the pilot small-scale O u t e r Island adaptation investments, as w e l l as in the awareness raising a n d public consultation.

Institutional arrangements

Although

it i s unlikely there wdl b e any substantial resettlement, t h e institutional arrangements for resettlement activities are described in the Resettlement Policy Framework. I n s t i h t i o n a l arrangements for the pilot small-scale O u t e r Island adaptation investments are described in a detailed Procedures M a n u a l for that subcomponent, including the participatory process by w h i c h vdlages a n d communities will come to consensus through a n inclusive process o f local level discussion a n d debate concerning the most pressing concerns facing the c o m m u n i t y a n d means by w h i c h those concerns will b e addressed. With the assistance of c i v i l society organizations a n d the Island Project Officer, proposals for smallscale adaptation investment grants wdl b e formulated a n d passed on to t h e D e v e l o p m e n t Committee at the island level and, from there, to the PMU a t the national level.

Both the PMU and the I s l a n d D e v e l o p m e n t Committees will regularly monitor progress in t h e implementation of the small scale adaptation investments. T h e i m p l e m e n t a t i o n o f the MOPSwill b e m o n i t o r e d by each m i n i s t r y on a n ongoing basis. T h e M&E system for t h e resettlement a n d l a n d acquisition aspects of the project i s described in the Resettlement P o l i c y Framework. A social assessment will b e conducted towards the e n d of the implementation phase to determine the social development outcomes achieved under the project, a n d to identify lessons learned for further adaptation planning.

5. Environment

A Strategic E n v i r o n m e n t a l Assessment (SEA) has examined the environmental issues that are likely to arise u n d e r IUP-11. As specific investments to b e undertaken under IUP-I1 have yet to b e designed, the SEA pr o vi d e s a general methodology for environmental screening o f policies a n d plans; t he preparation o f e n v i ro n me n ta l i m p a c t assessments for various kmds o f potenti al activities, i nc luding how best to m i ti g a te any possible negative consequences; a n d the monitoring o f the i mpl ementa tio n o f t he recommendations o f those EIAs.

T h e pr ojec t will h a v e some environmental impacts, but in most cases these impacts are not k e l y to b e substantial. In a l m o s t all cases th e impacts are expected to b e positive over the longer term. Th er e i s a n established regulatory environment in K i r i b a t i that mandates certain actions in the case o f negative environmental impacts. T h e E n v i r o n m e n t A c t of 1999 establishes a n integrated system o f development control, environmental i mpact assessment a n d pollution control. T h e Mi ni st er of E nv ir onm ent , L a n d s a n d Agricultural D evel opment i s responsible for the due administration a n d im plem ent a ti o n o f the Ac t. All development proposals o f government ministries, island councils, private developers a n d non-government organizations must undergo the environmental screening procedures o f t h e E n v i r o n m e n t a n d Conservation Division (ECD) as stipulated in the E n v i r o n m e n t Regulations 2001. T h e screening procedure requires al l proj ect proponents to apply for a p e r m i t to carry out a prescribed development. T h e application form will b e reviewed by E C D to determine whether t he p ro p o s a l requires a n i n i ti a l environmental examination (IEE) or a n EIS (a comprehensive EIA study). T h e EIA procedure allows for the proj ect p r o p o n e n t to conduct i t s own EL4 study a n d im plem ent th e ECD approved environmental management p l a n o f proj ect activities. T h e ECD would also p r o v i d e monitoring measures for the p r o p o n e n t to i m p l e m e n t a n d for w h c h N a t i o n a l E n v i r o n m e n t Inspectors would closely monitor environmental compliance of the project. Project activities in a n O u t e r Is l a n d would undergo the same environmental screening system. T h e implementation, management a n d monitoring o f the l ocal proj ect would b e supervised by the I sland Council, with possible assistance from ECD.

All subprojects u n d e r the Pilot Is l a n d A daptati on c o m p o n e n t a n d any m a j o r activity under the MOPS will undergo environmental screening to determine the likely l evel o f environmental impact. wdl b e categorized in a way consistent with B a n k OD4.01.

Activities

6. Safeguard policies Safeguard Policies Triggered by the Project

Yes

K nv ir onme n ta l Assessment (Ol’/I31’/Gl’ 4.01) N a t u r a l Habitats (OP/BP 4.04) Pest Management (01’ 4.09) Cultural P ro p e rty (OPN 11.03, b e i n g revised as OP

[XI

4.11)

I nv olunt ary Resettlement ((Il’/BP 4.12) I n d g e n o u s Peoples (OD 4.20, b e i n g revised as OP 4.10)

(W/m

Forests 4.36) Safety o f D a m s (OP/HI’ 4.37) Projects in D i s p u t e d Areas (Ol’/l31’/Gl’ 7.60)’ Projects on International Waterways (OP/BP/C;P

7.50)

[I [I [I

[XI

[I [I [I [I 11

[XI [XI [XI

1x1 [XI

[XI [XI [XI

* By supporting the proposed project, the Bank does not intend to prejudice the final determination of the parties‘ claims on the disputed areas

T h e E n v i r o n m e n t a l impacts o f th e project are expected to b e small. There m a y b e some small-scale c ons t r uc t ion associated with the project, but t h i s i s not expected to have m a j o r negative environmental consequences. As a result, the project has been rated Category B, requiring a parti al E nvi ronm ent al However, th e increasing and cumulative effects o f coastal infrastructure Assessment (EA). developments are likely to b e important, a n d as such, i t wdl clearly b e advisable to initiate a n env ir onm ent a l management p ro g ra m targeted at the coastal development sector. An integrated coastal management p r o g r a m would examine the current extent o f climate change adaptation options and coastal c ons t ru c ti o n activities a n d the impacts (both beneficial a n d adverse) experienced to date. T h e env ir onm ent a l management p ro g ra m should consider the preparation of a N a t i o n a l EIA Training P r o g r a m a n d a series o f Codes o f Envi ronmental Practice for use during the planning, design, construction, a n d operation as w e l l as maintenance o f al l roads a n d coastal works in K i ri bati .

7. Policy Exceptions and Readiness None.

ANNEX

1: COUNTRY, SECTOR AND PROGRAM BACKGROUND

KIRIBATI ADAPTATION

PROJECT - IMPLEMENTATION PHASE(KAP 11)

Country background IGi-ibati i s o n e o f th e most isolated a n d vulnerable countries in the world. I t consists o f 33 low-lying atolls a n d small reef islands spread over a vast sea area o f 3.5 million km2in t h e Western a n d Central Pacific. In t o ta l sea area, from East to West, IGri bati i s nearly as w i d e as the continental U n i t e d States, extendmg over 4,000 km a n d three island groups (Gilbert, Phoenix a n d L i n e Islands). T h e total l a n d area, however, i s only 726 km2,supporting a popul ati on o f almost 98,000 (2004 estimate). H a l f of t he populat ion lives in the capital a t o l l island of Tarawa (in the G i l b e r t Isl and Group), a densely populated area with a p o p u l a t i o n growth rate o f 3 Yo per year. T h e popul ati on shares a c o m m o n cultural heritage a n d speaks o n e n a ti o n a l language.

F&. 1. Map OfKzribati, showing the extent ofsea area and remoteness ofthe Outer Islands

Source: http://www.infoplease.com/atlas/county/k,itibati.html

T h e poor a to l l soil offers l i ttl e p o te n ti al for agricultural development apart from a f e w commodities such as copra. At the same time, the vast fishing area provides I Q r i b a t i with i t s most i m p o r t a n t source

o f revenue in the form of fishing licenses, w h c h amounted to about 23 O/O o f GNP in 2001-02. T h e t ot al GDP o f I G r i b a t i was US$54.6 million equivalent in 2003 or about U S $ 567 p e r capita. However, because seamen’s remittances a n d fishing license revenues i s a s i p f i c a n t contri butor to IGribati’s economy, GNI i s a m o r e relevant measure o f i n c o m e t h a n GDP. T h e GNI p e r capita declined from US$1,040 in 1999 to US$970 in 2004, reflecting the contraction in GNI in 2002-04 due to a decline in fishing license revenues. O f f i c i a l grants a n d loans a mo u n te d to US$58 million equivalent in the 2000-02 period, or 30 YOo f the Government’s annual budget expendtures. Though fishing revenues v a r y from year to year, the I Q r i b a t i economy i s stabdized by i t s Revenue Equalization Reserve Fund (RERF) derived primarily from phosphate revenues, w h i c h i s used to balance the budget a n d was val ued a t US$335.7 d o n in end-2003. O f f i c i a l external reserves are equivalent to 8 times the annual imports.

T h e m a i n challenge facing I h i b a t i at present i s the high popul ati on growth, averaging 2.1 O/o a year in 1998-04. By 2025, at current rates, the popul ati on of I h i b a t i wdl grow to 140-145,000, with Tarawa already densely p o p u l a te d - supporting at least 70,000 o f t h i s population. Thus would place tremendous added pressure on th e already fragile a tol l environment. T h e concentration of p o p u l a t i o n in Tarawa i s largely due to e m p l o y m e n t a n d l i v e l i h o o d opportunities. Currently, only about 10 O/o o f the popu lat ion i s formally e mp l o y e d in the cash economy, and two-thirds o f the jobs are p r o v i d e d by t h e publ i c sector. Ths high reliance on th e p u b l i c sector for job security has been at the core o f t h e Governmentâ&#x20AC;&#x2122;s reluctance to privatize m a n y o f the 28 publ i c enterprises. T h e G o v e r n m e n t i s currently studying voluntary incentives to attract mi g ra ti on into I G i t i m a t i (Christmas Island) in the L i n e Isl and Group (3,500 km east o f Tarawa), w h i c h i s under Government land. Though I G i t i m a t i - the largest at oll in the world - comprises h a l f o f the l a n d area of I G i b a t i , i t lacks direct air links with Tarawa, a n d suffers from periodic droughts a n d poorly developed infrastructure.

Vulnerability K i r i b a t i i s o n e o f th e most vulnerable countries in the world to the effects o f clunate change a n d sea level rise. Although it lies outside the cyclone path, most o f the l a n d i s less t h a n 3 meters above sea level a n d lies a l o n g a n a rro w strip surrounded by sea on both sides. T h e average width o f u r b a n Tarawa, for example, i s j u s t 450 meters (see Table 1).

Table 1 Kiribati Main Atolls - Population and Island Width A t o l l s and island Makin Butantan Marakei Abaiang North Tarawa

Population

Widest widths (m)

(2000) 1,691 3,464 2,544 5,794 4,477

1700 1200 2100 800 1400

Average

widths (m) 600 350 500 300 500

Maiana 2,048 1100 400 Kuna 961 3700 1,700 Aranuka 966 1600 770 Abemama 3,142 1200 710 Nonouti 3,176 900 400 Tabiteuea Nth 3,365 2300 700 Tabiteuea S t h 1,217 2000 650 Onotoa 1,668 940 420 2,732 Bern 1800 800 Nikunau 2600 1,733 1,300 Tamana 962 1100 900 Arorae 1,225 1100 800 30 O r o n a (Hull) N/A N/A Teraina (Washington) 1,087 N/A N/A Tabuaeran (Fanning) 1,757 N/A N/A 3,431 39,000 7,245** K i n t i m a t i (Christmas) Sources: L a n d and Stlruy Division (original); Government Kiribati; IGCI (1999). wu.w.woildtravclcruide.iict/d:itd/ kir/kii.:isp ** Minimum width of ChristmasIsland (wivw.woi~kcr~foiicsus.c(,in/3 1-rnci.htm)

T h e islands are exposed to periodic storm surges with a r e t u r n p e r i o d o f 14 years a n d to droughts during L a NGia years (about once every 3-4 years). Rainfall above 3,000 mm p e r year (leading to floods) occurs once every 6-7 years. A d d e d to natural vulnerability there i s also considerable socioeconomic vulnerability due to high p o p ul ati on growth rates a n d i n-mi grati on into Tarawa, where semi-

per m anent settlements, rate o f development, a n d environmental degradation are already pronounced, a n d expected to accelerate in the near future. T h e im pac t s o f climate change are expected to b e severe. In 1999-2000, the World B a n k fun ded a study of v ul n e ra b i l i ty a n d adaptation in Tarawa, conducted by experts from t h e Internati onal G l o b a l Change Institute, t h e Go v e rn m e n t o f IGribati, the University of Otago, a n d E co-w i se E nvi ron m ent . T h e study found th a t climate change a nd sea level rise are likely to lead to severe incremental impacts, disrupting m a j o r economic a n d social sectors (Table 2). By 2050, in the absence o f adaptation, IG r ibat i c o u l d experience p o te n ti a l economic damages of US$8-16 million a year, equivalent to 17-34 percent of t h e 1998 GDP.

Table 2. Potential Impacts o f Climate Change, Variability and Sea Level Rise in Kiribati, 2050 Tjp ojlmpact Impact on coastal areas: L o s s of land to erosion Buariki (North Tarawa) Bikenibeu (South Tarawa) Loss of land a n d infrastructure to inundation Buariki (North Tarawa) Bikenibeu (South Tarawa) Loss of coral reefs

PhysicalImpact

0.3 to 0.7% 0.6 to 1.3%

Annual Damages (in millions o j 1998

US#)

L v e l oj

Certain0

0.1-0.3

Low

18 to 80% 0 to 54 Yo 10 to 40%

7-12

Low

0.2-0.5

Very Low

Impact on water resources: Change in groundwater thickness (Bonriki lense)

19 to 38%

1-3

Low

Impact on agriculture: Agriculture Output Loss

Depends on rainfall scenarios; sea level rise would have negative impact

Low

Impact on public health: Increased incidence o f diarrheal disease Increased epidemic potential o f dengue fever Increased incidence o f ciguatera poisoning I m p a c t on public safety and the poor Potential increase in fatalities due to inundation and water-borne or vector-borne diseases

Expected to increase 22 to 33% 4.6 to 6.1 fold Substantial impact on subsistence crops/fisheries, increased crowding Expected to increase

++ + +

Low Low Low

+ +

Very Low

Low

>8-1/;+ .-

Total Estimated Damages

Furthermore, the study suggested that 18 to 80 Yo of t h e l a n d in Buariki, North Tarawa, a n d up to 54% of l a n d in Blkenibeu, South Tarawa, c o u l d become i nundated by 2050, though t h e effects o f erosion are expected to b e relatively small. T h e c o m b i n e d effect o f sea level rise, changes in rainfall, a n d changes in evapotranspiration due to h g h e r temperatures c o u l d result in a 19-38 Yo decline in t h e thickness of t he m a i n groundwater lens in Tarawa. Agriculture p r o d u c t i v i t y - particularly for taro a n d pandanus - c o u l d d e c h e due to storm i n d u c e d saltwater intrusion into groundwater. H i g h e r temperatures c o u l d also increase t he epidemic p o te n ti a l for dengue fever by 22-33 Yo, increase the incidence o f ciguatera poisoning a n d degradation o f coral reefs, a n d di vert critical tuna resources away from I h b a t i waters.

Fig. 2 - Projected

-.-_ -- _ _ _ _ _ _ _----

*_ _ - e -

Reef Edge

m ,m

--. --.

[ B 1.0m abavsMHWS

Inundation o f Bikenibeu Island (South Tarawa) under Worst-case Scenario

Key A: Present status

B: Residual island under a worst case scenario, 2 100; C: Residual island under worst case scenario and storm surge, 2 IO0 Source: World Bank (2000).

Climate change scenarios T h e I G r i b a t i Climate Change Study T e a m recently adopted a n updated set o f climate change scenarios (see Table 3). However, a l l p o l i c y documents also recognizes that t h e main impacts o f c h a t e change will not b e felt through changes in th e annual mean temperature or rainfall, but through i t s effects on t he variabhty, i n c l u d mg r e t u r n periods o f particular storm surges, intense rainfall, or drought. Hence, c h a t e change adaptation should b e managed by addressing the full range o f climate-related hazards, r anging from weather extremes to creeping hazards a n d l ong-term trends. IQiP-11 will provi de for TA to prepare risk i n f o r m a t i o n that includes the w h o l e spectrum o f c h a t e variability a n d climate change, inc luding current r e t u r n periods o f various c h a t e extremes (droughts, extreme rainfall, storm surges, etc), a n d projected trends therein. Table 3. Initial planning assumption for climate change o n Tarawa

2025

M e a n sea level rise relative to the level in year 2000 Change in annual mean air temperature relative to year 2000 Change in annual mean rainfall relative to year 2000

62?: : : : (

+0.4 O C (+0.3 to +0.5) +3% (+I% to +70/0)

2050

cm)

+LO

O C

(+0.8 to +1.4)

+7%

(+2% to +170/0)

2100

+39 c m (+12 to +83 cm) +2.3 OC (+1.3 to +3.5)

+15% (+4% to +46%)

Country Strategy T h e G o v e r n m e n t of IGribati has shown nearly a decade o f c o m m i t m e n t to clunate change adaptation. A national Climate Change T e a m was established in 1995 under the U S Country Studies Program. T h e team continued i t s work under the G E F - f u n d e d Pacific Islands Climate Change Assistance Programme (PICCAP, u n d e r UNDP assistance), w h i c h supported the preparation o f I e i b a t i ’ s initial N a t i o n a l C o m m u n i c a t i o n to the UNFCCC (submitted at the 5th Conference o f the Parties in 1999), as w e l l as a C h a t e Change N a t i o n a l Implementation Strategy P I S ) , issued in January 2003. In subsequent years, preparation phase o f the I G r i b a t i Adaptation Program, a n d the preparatory activities for the N a t i o n a l Adaptation Programme of Action, p r o v i d e d further consultations a n d analyses that are currently guiding IGribati’s response to adaptation. In June 2005, the Government o f Kiribati adopted the following formal Policy o n Adaptation to Climate Change: “Warning of the earth 5- climate, with an associated rise in sea level and an increase in the frequeny and seven3 of extreme weather conditions, is current4 occumng and is like4 t o continue through this century. The principal cause of these changes is the efect on the earth’s atmosphere of emissions from economic activities in industrialixed countries. International recognition ofthis has led wealthy nations to set up arrangements to help developing countries with the design andjinancing of nationalprogrammes of adaptation to climate change. Kiribati is particular4 vulnerable t o the impacts of climate change, which constitute a mqor strategic risk to the economy and national well-being. The nature ofthe risk has to be specz$ed and appropriate responses developed at national and local levels, Successive Governments of Kiribati have been active in global and regional consultations about the climatic changes taking place and how t o deal with them. National expertise has developed and links have been established with the relevant regional and internationalinstitutions.

A s Kzribati cannot escape climate change it must adqbt t o it. The adaptation process needs t o give people the best possible chance ofliving decent lives during and byond the period of climate change nowforeseen. A s the impacts of climate change

reach into all aspects of/$ in Kiri‘bati, broad public consultation and particzpation in planning and implementation are neededfor sustainable responses. M a 9 departments ofgovernment are involved, requiring both centralpoliy co-ordination future climate change is and clear delegation of responsibiliij for action. A n d as the precise speed and extent unknowable, adqbtive responses themselves need t o be risk-minimi@ng,flexible andprogressive.

The current statement $National Development Strategies (NDS) 2004-7 identzj?es climate change as a mqor area of developmental concern. I n Ky Poliy Area 1, Economic Growth, Issue 3 states %limate change bringspotentialh cost4 r i d s to economic growth ’, and calls for the development of partinpatory and cost-efective way of minimieng and managing risk of lossfrom climate change-related events The Government’spoliy aims in respect of climate change are thergore that: Kzribati should be mental’, physical4 and jinancialh wellprepared t o deal with whatever climatic trends and events thefuture m y hold,. this should be achieved through a coordinated,particzpation-based adaptation programme carried out Ly oflcial andprivate agenczes; and externaljinancialassistance should be obtained t o meet the costs ofthe national adaptationprogramme. ”

with t h s Policy Statement, the government adopted a m o r e elaborate C h a t e Change A d a s a t i o n Strategy, w h c h i s implemented, a m o n g others, through the I G n b a t i Adaptation Program. T h e following sections hghlight the background o f the Policy Statement, C h a t e Change Strategy, the I G r i b a t i Adaptation Program, as w e l l as the current I U P - I 1 project.

Regional context T h a t approach to adaptation taken in IGribati, i ncl udi ng the mainstreaming o f adaptation into economic planning, i s fully consistent with the Framework for Action on Climate Change, Climate Variabilig and Sea Level Rzse in the Pacific Island R e g o n (2000). U n d e r the adaptation objective statement, the F r a m e w o r k l i s t s t h e following key o u t p u t s : 0

M a i n s t r e a m effective a n d efficient c h a t e change related risk management in n a t i o n a l d e v e l o p m e n t plans, budgets, sectoral plans, policies a n d projects I m p l e m e n t integrated adaptation measures a n d policies a t the n a t i o n a l a n d / o r c o m m u n i t y level Strengthen national capacity to deal with a n d r e s p o n d to c h a t e related issues a n d m a i n s t r e a m adaptation in national p l a n n i n g Disseminate i n f o r m a t i o n a b o u t clunate related issues related e c o n o m i c a n d social i m p l i c a t i o n s to high-level p o l i c y makers as w e l l as t h e general public.

E n h a n c e t h e m e t h o d s to h e l p ensure a m o r e effective linkage between i d e n t i f i e d vulnerabiltties a n d p r o p o s e d adaptation measures.

T h e Government’s approach i s also consistent with the recommendations o f t h e f u s t a n d second Pacific Islands High L e v e l Ad a p ta ti o n Consultations (2002 a n d 2003). T h e 2002 N a d i Communiqui, endorsed by th e Pacific Is l a n d Forum, stated that “climate change, climate variabdi~,and sea level rise is notjust an environmental, but also an economic, social, and political issue for Pacz$c Island countries”. T h e Communiqui r ec om m ende d th e following m a j o r principles in mainstreaming adaptation: Integrate risk management in t h e n a t i o n a l development p l a n n i n g a n d b u d g e t i n g process Strengthen capacity for risk assessment a n d risk management Strengthen capacity of the ministries o f e n v i r o n m e n t to p e r f o r m m a c r o e c o n o m i c a n d cost/benefit analyses Strengthen the capacity of t h e ministries of p l a n n i n g a n d fulance to internalize the implications o f environmental issues a n d i n c o r p o r a t e adaptation a n d disaster management concerns into the b u d g e t a n d p l a n n i n g processes Strengthen institutional arrangements for high-level national c o o r d i n a t i o n a n d t h e f o r m u l a t i o n of n a t i o n a l policies, strategies a n d strategic plans Disseminate i n f o r m a t i o n a b o u t climate change a n d adaptation a n d related e c o n o m i c a n d social implications to high-level p o l i c y makers as w e l l as t h e w i d e r p u b l i c I n c l u d e risk assessment a n d risk management in t h e f o r m u l a t i o n of projects, p r o g r a m s a n d the development p l a n i t s e l f

The Kiribati Adaptation Program (KAP) In 2003, as a direc’t follow-up of the 2000 World B a n k Study and the r e g o n a l developments m e n t i o n e d above, t he Go v e rn me n t of IGribati, with support from t h e World Bank, started t h e I G r i b a t i A da pt at ion P r o g r a m QUP), with t h e k e y goal o f reduci ng IGribati’s vulnerability to climate change, climate

variability a n d sea level rise. T h e p r o g r a m i s envisaged to i nvol ve the following phases:

P Phase I: Preparation (2003-2005). This

phase ai med to mainstream adaptation into n at ional economic planning, prepare a N a t i o n a l A d a p t a t i o n P r o g r a m o f A c t i o n a n d design a n i n t e r m e d a t e pilot implementation phase, IUP-11. All o f these activities were based upon a n extensive consultation a n d process, as w e l l as several technical studies in key affected sectors. I t i s b e i n g

f unded u n d e r a Japan PHRD Climate Change Initiative &JS$645,580), a N a t i o n a l A dapt at ion Programme o f A c t i o n grant u n d e r the L D C fund (US$200,000), G o v e r n m e n t contributions &JS$25,000), a n d a GEF PDF-B G r a n t (US$99,100).

Phase II;.Pdot Implementation (2006-2008) i s the focus o f the current PAD. I t aims to develop a n d demonstrate th e systematic diagnosis o f climate-related probl ems a n d the design of costeffective adaptation measures, w h i l e continuing the integration o f awareness a n d responsiveness into economic a n d operational planning. This will b e achieved through conti nued consultation a n d awareness raising; consolidation o f the mainstreaming o f adaptation into national economic planning; a n d implementation of pilot adaptation measures to address pressing adaptation issues while building capacity in key government ministries, local government a n d communities. Besides the G o v e r n m e n t o f IGi-ibati’s own contribution, it wdl b e financed by t h e GEF’s Strategic Priority “Piloting an Operational Appmach t o Adaptation”, with cofinancing from AusAID a n d NZAID a n d parallel financing from th e EU. Phase III: Expansion (2009-2015)would gradually scale up t h e investments pi l oted under Phase I1 to cover a l l m a j o r islands a n d vulnerable sectors o f K i ri bati . This phase m a y b e eligible for funding u n d e r one or m o r e of th e three global funds for adaptation (LDC, Special Climate Change Fund a n d A d a p ta ti o n Fund), complemented by b a s e h e financing from t h e GoISs own budget as w e l l as bilateral contributions. Care would b e taken to ensure that there would b e no duplication of

activities fu n d e d u n d e r th e GEF Strategic Priority a n d those f u n d e d u n d e r the global funds, should they b e accessed. T h e progression of I U P phases i s outl i ned schematically below.

Phase I: Preparation

Phase III: Expansion

Phase II: Pilot Implementation

Previous4 GEFfunded: National Communication

Adaptation Investments

2003

2005

Phase I

IGEF Funding: NAPA Baseline: Japan CC Funds I

2007

201 1

2009

Phase II

2013

Phase IIl

SPA Government AusAID, NZAID, EU

LDCF / Special Climate Change Fund/Adaptation Fund Government

bilateral contributions

I t i s expected that external financing for mainstreaming wdl progressively decline as i t i s institutionalized into Kiribati’s n a ti o n a l economic planning, whdst financing for adaptation investments would b e expanded to cover a l l critical islands and sectors. Successful mainstreaming would not imply that no further investment costs are required, only that adaptation response i s integrated into regular

polic y a n d implementation. Vulnerable countries &e I Q r i b a t i are quite likely to see rising impacts and inc r ement al development costs due to climate change, almost regardless of the effectiveness and sustainability o f early adaptation measures. Mainstreaming i s the best way to: (a) ensure that m a n y lowcost adaptation measures are integrated into government pol i cy a n d thereby become sustainable; and (b) ensure t h a t t h e incremental investments needed to adapt to climate change are as effective and efficient as possible. For these investments, the G o v e r n m e n t of IQribati hopes to gain support from the inter nati o n a l c o m m u n i ty .

Results from KAP-I: Mainstreaming Adaptation into National Economic Planning

I(AP-I has b e e n closely l i n k e d with th e preparation o f the 2004-07 N a t i o n a l D evel opment Strategy and t he Ministriesâ&#x20AC;&#x2122; 2-3 years Operational Plans (funded partially through ADB assistance). I t i s also being c oor dmat ed with t h e preparation of the N a t i o n a l A daptati on Programme of A c t i o n PAPA) f u n d e d by GEF u n d e r UNDP execution. T h e process fol l ow ed in mainstreaming i s shown below: National Implementation Strategy (2003)

First National Consultation: Assessment o f Island Vulnerabilities fcombleted)

Second National Consultation:

Prioritization of Coping Strategies

fcombleted)

Integration of Adaptation into 2004-07 National Development Strategy

. fcombleted)

Initial Technical, Social and Economic Analysis of Adaptation Options fcombleted)

Climate Change Adaptation (CCA) Strategy (adopted bJi Cabinet - June 2005)

Adaptation Mainstreaming into Ministry Operational Plans fon-~oin~)

Pilot investments under RAP-I1 (this PAD)

National Adaptation Programme of Action (NAP4 /to be combleted in second half o f 2006)

National Consztltations. Using established risk management tools (Comprehensive H azard and Risk Management) developed by the South Pacific A p p l i e d Geosciences Commission (SOPAC), I U P - I h e l d two m a j o r n a ti o n a l consultations, w h i c h gradually built awareness a n d c o m m i t m e n t for adaptation and climate change. T h e First National Consztltation, h e l d in the Gi l bert a n d L i n e I s l a n d Groups from' 23 of June to 15 August 2003, brought together C h i e f Councilors, government staff, clerks, zlnimwane representatives (tra d ti o n a l elders), w o m e n a n d youth from each of the islands o f ISiribati. K e y results included: 0 Awareness that the changes they faced were not unique to their islands, but shared across t h e islands 0

catalogue o f kinds of changes experienced over the last c o p i n g mechanisms used to deal with those changes

20-40 years, a n d t r a d t i o n a l

preliminary assessment o f areas where people felt they needed additional assistance in c o p i n g with their vulnerabilities

A strategy to take results b a c k to their islands for further l ocal level consultations A shared a n d distinctively I-ISiribati defi ni ti on o f w h a t i s vztlnerabilig a n d adaptation

T h e Second National Conszlltation (November-December 2003) i ncl uded most of t h e same stakeholders from the F i r s t Consultation, but also Is l and Project Officers. K e y results included:

by the island stakeholders

Prioritization o f vulnerabilities identified

I d e n ti fi c a ti o n of adaptation (coping) strategies for the i denti fi ed vulnerabilities

A classification of adaptation strategies into (a) those w h i c h w ere urgent a n d c o u l d b e undertaken by communities themselves; @) those w h i c h were urgent a n d would require outside help, a n d (c) those w h c h were less urgent a n d did not need to b e addressed immediately

Participants t h e n assigned u r gent adaptation strategies for w h c h outside h e l p was required to specific ministries for i n c l usi on in their operational plans

Mainstreaming into National Development Strateg. T h e N a t i o n a l Consultations w ere closely coordinated with t he f or m u l a ti o n of th e 2004-2007 N a t i o n a l D e v e l o p m e n t Strategy. Meetings on adaptation wer e immediately fo l l o w e d by discussions on the NDS, involving m a n y o f the same stakeholders. As a consequence, adaptation issues are w e l l integrated into the NDS, a n d climate change i s recognized as o n e o f t he key issues potentially affecting economic growth.

In order to i mp l e m e n t the NDS mandate to address that vulnerabhty, the I - K i r i b a t i Cabinet recently also adopted t h e Climate Change Ad a p tati on (CCA) P ol i cy Statement a n d Strategy (see above),

With respect to the responsibilities o f t h e national government, the CCA Strategy adopts a perspective o f mainstreaming adaptation into n a ti o n al economic planning, as reflected in the structure of IUP-11. Furthermore, I U P - I 1 provides th e resources a n d technical assistance to establish the participatory planning process envisaged in th e CCA strategy, a n d delivers the external financial resources to address, on a pilot basis, the additional cost o f some o f t h e priority adaptation investments i denti fi ed u n d e r IUP-I.

Mainstreaming into Ministy Operational Plans. Mainstreaming at the operational level i s b e i n g enhanced by using t he outputs of th e N a t i o n a l Consultations to inform the f o r m u l a t i o n o f t h e annual M u i s t r y Operational Plans (MOPS).MOPS,w h c h were i n t r o d u c e d in 2004, are t h e key p l a n n i n g tool for a l l G o v e r n m e n t Ministries a n d p u b l i c enterprises. T h e y are coupled to the government's p r o g r a m budget

(which in t h i s context includes all sources, i.e. recurrent plus development, in kind and cash), and subject to biannual progress re p o rti n g to monitor M h s t r y performance. W h i l e in 2004, only a f ew MOPSreflected adaptation priorities, the 2005 MOPSshowed considerable attention for adaptation in m a n y key programs. T h e 2006 MOPs, w h i c h will incorporate the add-on investments o f IU P -11, will b e t he f i r s t generation o f MOPs with comprehensive mainstreaming of adaptation priorities across all climate relevant programs in the key ministries. During I U P - 1 1 , t h l s mainstreaming process will continue, a n d adaptation priorities in the key MOPs will b e fine-tuned on the basis o f further consultations a n d technical inputs. W h i l e specific pilot investment activities that are p a r t o f I U P - I 1wlll only appear in th e MOPSfor the years in w h i c h they are implemented, most o f the mainstreaming of adaptation in MOPSprograms wlll b e based on recurrent budget resources, a n d are expected t o become continuous components o f relevant MOPs, fully sustainable after t h e e n d o f IUP-I1 (although future specific adaptation investments in the expansion phase would again b e added to the regular level o f activity in t h e MOPSo f affected Ministries).

Social, Technical and Economic Assessments. U n d e r complementary I U P a n d NAPA funding, adaptation investments have b e e n assessed a n d prioritized based on technical, social a n d economic merits (as summarized in A n n e x 4). In response to the concerns expressed by the nati onal consultations, key technical a n d economic assessments focused on strategic options for coastal management a n d freshwater resources. As p a r t of th e coastal vul nerabhty analysis, I U P - I also supported a comparison o f old (post World W a r 11) maps to determine historical rates o f island erosion. A comprehensive social assessment “The Sun is Coming Closer to my Island” was conducted based partially on fieldwork in f iv e islands (Butaritari, Abemana, I(iritimati, Tamana, a n d Onotoa). As p a r t o f the GEF-PDF B preparation grant, a n environmental analysis, regulatory review, l a n d acquisition framework, fuvther technical assessments, a n d preparation o f a Procedures M a n u a l for island investments have been carried out. T h e NAPA process i s expected to result in a N a t i o n a l A d a p t a t i o n P r o g r a m o f A c t i o n in early

2006.

T h e basis for the design of KAP-11’s pilot investments

IUP-I1 c o mp o n e n t includes a n u m b e r o f priority publ i c sector adaptation investments in key vulnerable sectors, as i d e n ti fi e d a n d p ri ori ti zed in the Ministries Operati onal Plans (MOP). By adding pr ojec t funds to th e G o v e r n m e n t b u d g et for these investments, the proj ect provides a n incentive for a gradual uptake o f adaptation-friendly investments a n d policies across the development pl anning o f K ir ibat i. I U P - I came at a n o p p o rtu n e time, since 2004 m a r k e d the f i r s t year that MOPs were i ntroduced in K ir ibat i. E a c h priority p r o g r a m in sectoral Ministries a n d publ i c enterprises will have specific p r o g r a m indicators, a n d should b e supported by the Ministry’s p r o g r a m budget. These indicators, once developed, will also b e c o m e th e output in&cators for IUP-11, t h u s ensuring that proj ect monitoring i s closely l i n k e d to th e national budget. T h e process for p ri o ri ti z a ti o n o f adaptation investments i s explained bri efl y below:

1. Identification o f Coping Strategies During the f i r s t n a ti o n a l consultation, representatives from each o f the islands i denti fi ed t he key changes (hazards) experienced o v e r th e past 20-40 years, a n d the c o p i n g mechanisms proposed to deal with these changes. An example i s shown below:

Hazards

Impact

Coping Strategies

High storm surge

Inundation : water becomes brackish Erosion: reduction o f land area

Construct wood embankment Plant mangroves; limit removal o f aggregates

2. Adaptation Prioritization and Responsibility Allocation During t he second national consultation, island representatives rated the adaptation options a n d classified t h e m into four categories:

A = U r g e n t adaptation options w h i c h can b e done by communities themselves (“things that we can do nght away’) B = U r g e n t adaptation options for w h i c h communities need assistance from the G o v e r n m e n t (“things that we want t o do nght awy, b u t j r which we need assistance”) C = A dapt a t i o n option that are less important/urgent (“things that are somewhat less importantlurgent”) D = A d a p t a t i o n options for w h i c h there i s s t i l l no need or willingness to i m p l e m e n t (“things that we do notyet need or want t o do”). Only B category options were considered in the process o f mainstreaming into the MOPS. Adaptation Option

I Awareness raising

I Priority Category I R a n k

I Category

I Lead Ministry

I General

1 MELAD

Water Resources: -Protect water wells -Assess available water -Water pumps and pipes

MCTI’D/MEYS

Water resources

B B B

3 4 2

MPWU MPWU MPWU

3. Assessment o f Potential Global Environmental Benefits and Incremental Development costs

T h e priority adaptation options were t h e n assessed on a preliminary basis against their potenti al global environmental benefits, a n d incremental development costs due to climate change. Not surprisingly, t h i s analysis found that m a n y adaptation investments with significant incremental development costs &d not have s i p f i c a n t global environmental benefits:

Priority Category

Option Yes (High)

7 Rank

Lead Ministry

General

MELAD MCTTD/MEYS

Water Resources: -Protect water wells -Assess available water -Water pumps and pipes

Category

No Yes (Low)

Yes (Med) Yes p e d ) No

B B B

3 4 2

MPWU MPWU MPWU

4. Assessment o f T 9 e o f Response Required T h e adaptation options were then divided into five categories according to the nature o f the response:

(1) (2) (3) (4)

(5)

Changes to government policies a n d strategies Changes to laws and regulations, with appropriate mechanisms to i m p r o v e compliance Interaction o f extension a n d i n f o r m a t i o n services with communities a n d households F o r m a l engineering a n d construction works by Government, island councils and contractors I n f o r m a l engineering and construction works by households a n d communities

5. Mainstreaming into the Ministry Operational Plans T h e adaptation options were circulated to all relevant W s t r i e s during the process of formulation o f their Operational Plans, a n d facilitated by a team o f consultants. T h e investments were checked against the Ministries key programs to ensure that they h a d a ‘home’. T h e results are summarized in Table 4. T h e 5 m a j o r sectoral Ministries that would b e most i n v o l v e d in implementing adaptation include: 0 0 0 0

W s t r y of Environment, Lands a n d Agriculture Development (MELAD)

Ministry of Public Works a n d Utilities (MPWU) M i n i s t r y of Internal a n d Social Affairs (MISA) Ministry of Fisheries a n d M a r i n e Resources Development (MFMRD) Ministry o f Communication, Transport a n d Tourism D e v e l o p m e n t (MLPID)

T h e Ministry o f H e a l t h a n d Medical Services i s closely i n v o l v e d in I(AP, but will not b e implementing specific investments during IUP-11. M o r e in general, i t i s i m p o r t a n t to emphasize that I(AP-I1 has been selective, a n d that a future expansion o f the adaptation p r o g r a m will probably not only i n v o l v e a scalmg up o f I(AP-11’s pilot investments, but also a n expansion to other sectors. Examples include health (includmg vector-borne disease management) a n d agriculture - both sectors have clear adaptation issues, but were deemed less i m p o r t a n t w a n t water a n d coastal p r o t e c t i o n (also because improvements in water and sanitation a n d coastal l a n d use also address some o f t h e key health a n d agriculture issues that were identified by t h e national consultations).

To date, the adaptation options emerging from the national consultation have b e e n treated with respect a m o n g G o v e r n m e n t Ministries. Sectoral Ministries have raised no objections to t h e sharpening a n d intensifying of their response to the challenges of climate change. However, t h e prioritization of adaptation options has not yet penetrated very far down to the operational level. P a r t o f the p r o b l e m m a y b e I(AP’s focus on “no regrets” options, rather t h a n expensive, attention-catching solutions to c h a t e change w h i c h can excite public imagination. I(AP’s approach i s in effect a n all-pervading but incremental, low-key process, eventually affecting all k e y aspects o f the N a t i o n a l D e v e l o p m e n t Strategy. I t i s expected that t h i s will b e ultimately m o r e effective t h a n investing large fundmg in only a f e w highprofile investments.

15.

Priorithhg and SpeciFng the Investments

T h e n e x t steps in project preparation have been to prioritize specific adaptation investment, based upon the following criteria:

1. 2.

3. 4. 5. 6. 7. 8. 9. 10. 11.

Degre e o f adverse effects/vulnerability bei ng addressed (ue y high/ h&b/medium/low/ vey low) (based upon hsk/ vulnerabiLi9 anahsis) I m p o r t a n c e attached by the national consultations (uey high/ h&b/medium/low/ uey low) (based upon rankingsfrom national consukations) Cost relative to benefits (uey high/high/medium/low/uey low) T im i n g /u rg e n c y (immediatelcan waitlunknown) No-regrets lyeslno) E n v i r o n m e n t a l impacts lyes/ some/ no/ unknown) Culturally acceptable? lyes/probab&/ma_ybe/no- htpotentialproblems) L e v e l of i mp l e m e n ta ti o n (genetic/ sector-speazclsite-speaJc/ sector-and-site-speaz~ Participatory (bottom-upltop-down/ both) Synergy with p o v e rty reduction lyeslsomelno) Synergy with other multilateral environmental agreements lyeslsomelno)

T h e out c ome o f h s p ri o ri ti z a ti o n was used as a n i m p o r t a n t input for the fi nal design o f IUP-11, w h i c h was based upon solid technical a n d economic assessments o f the priority options. Finally, the nature o f IUP-11â&#x20AC;&#x2122;s design added another, crucial criterion, namely that the investments h a d to fit within a MOP p r o g r a m ide n ti fi e d by th e leadmg Ministry, i ncl udi ng allocation of resources from the governmentâ&#x20AC;&#x2122;s recurrent budget. Furthermore, in a d d iti on to the priority investments, IUP-I1 includes support for continued participatory mainstreaming o f adaptation, w h i c h will not only support the achievement a n d sustainabhty o f t h e sectoral investments under I U P - 1 1 , but also i n v o l v e a m u c h w i der set o f actors in the adaptation process, a n d set the stage for the expansion of the adaptation efforts,in I G - i b a t i during

IUP-111.

Furthermore, as can b e seen in Table 4 below, m a n y of the priority adaptation options identified by the national consultation i n v o l v e regulatory r e f o r m or i m p r o v e d compliance to existing regulations. T h e legislative a n d regulatory review (funded by the GEF PDF-B) has recommended several changes to existing regulations a n d policies. All sectoral investments u n d e r I U P - I 1 also include elements of regulatory reform, supported by provision o f alternatives for destructive activities (such as beach mining) a n d awareness raising to foster behavioral change.

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ANNEX 2: MAJOR RELATED PROJECTSFINANCED BY THE BANK AND/OR OTHER

AGENCIES KIRIBATI ADAPTATION PROJECT - IMPLEMENTATION PHASE(KAP 11)

T h e IOribati Adaptation Program i s the f E s t World Bank investment operation in IGribati. Project

Sector Issue Addressed

World Bank-managed: Kiribati Adaptation Project ) I Preparation - â&#x20AC;&#x2122; l l i K(

Adaptation Mainstreaming and Preparation o f U P - I 1

Other DevelopmentAgencies:

ADB: Water Sector Technical Assistance (ongoing)

E U / S O P A C : Reducing Vulnerabrlity in Pacific A C P States (ongoing)

E U / S O P A C : Pacific Program for Water Governance

UNDP: Outer Island Governance Assistance (In preparation)

ADB S A P H E project UNDP/GEF, add-on project for Biodiversity Strategy

Action Plan

UNDP/GEF, National Capacity Self Assessment UNDP/GEF, through SPREP: International Waters project UNEP/GEF, Persistent Organic Pollutants (POPS) UNEP/GEF, Biosafety Framework ADB: TA related to potential development o f Outer Islands Growth Centers

Water sector policy and possible follow-up i n v e s t m e n t

Vulnerability mapping;

Possible future investment in coastal protection (under EDF) Assistance to improve freshwater resources management, including participatory planning Assistance to improve Outer Island governance Sanitation, Public Health and Environment Improvement Biodiversity conservation

Capacity to implement MEAs

International Waters Persistent Organic Pollutants

Biosafety Feasibility of population

resettlement (particularly to Kiritimati)

Latest Saperuision Ratings Implementation Development Objective Progress

ANNEX

3: RESULTS FRAMEWORK AND M O N I T O R I N G

KIRIBATI ADAPTATION PROJECT IMPLEMENTATION PHASE (KAP 11)

Results Framework tco T o develop a n d demonstrate the systematic diagnosis o f climate-related problems and the design of costeffective adaptation measures, while continuing the integration o f awareness and responsiveness i n t o economic and operational planning.

SNPRA Unit established within f i r s t year o f implementation as lead agency coordmating C C A and related strategies Percentage o f clunate-affected MOP programs that reflect systematic climate risk management Consistent use o f best practice 111 the application o f risk management, e n w o n m e n t a l assessment a n d options analysis, consistent with relevant defined strategic a i m s and policies, t o pubhc infrastructure a n d CCA vulnerabhty reduction measures

I m p r o v e d consultation, planning and coordmatlon mechanisms to support

YR 1 gauge institutional progress YR 2 assess effectiveness a n d

determine whether components need t o b e adjusted

YR 3 feed results and lessons learned into design o f continued GoK adaptation program

Component One:

P r o p o r t i o n o f the adult population o n Tarawa that i s aware o f CCA

YR1/2/3: assess adjustments to b e made to awareness raising a n d

N u m b e r o f NASC meetings with participation o f Director/Senior Assistant Secretary or higher level officials o f at least 4 key ministries

consultation activities

N u m b e r o f CCST meetings attended by technical officers o f at least 6 key departments

YR3: assess evidence that awareness messages are resulting in the intended behavioral changes

Yr3 : l o w incorporation o f CCA

N u m b e r o f schools that have incorporated climate risk management in their curriculum

messages or impact m a y indicate need to change the awareness message dissemination or incentives in the project

N u m b e r o f church events that incorporate CCA messages

YR2 : large n u m b e r o f Steering

Consultation a n d awareness raising activities reflect clear role for NGOs and w o m e n Climate risk profile p r o d u c e d and used in at least three m a j o r infrastructure investments

Committee meetings without the intended participants m a y indicate waning interest in topic or l i m i t e d understanding on particular m i n i s t r y â&#x20AC;&#x2122; s role in the C C agenda

Component Two:

Component Two :

Component Two:

I m p r o v e d management of climaterelated hazards to coasts, public assets a n d ecosystems

Pilot investments are based o n rigorous analysis o f risk treatment options, including economic analysis, environmental and social assessment

YRI/YR2 assess awareness o f the

Frequency of flooding causing disruption o f hospital services reduced to an acceptable r e t u r n period N u m b e r o f reports o f coastal a n d marine ecosystem m o n i t o r i n g

communities to the need t o reduce and or b a n coastal aggregate mining

YR2/3 develop acceptable and costeffective options for climate p r o o f i n g public assets

YR2-3 compile lessons learnt f r o m the various activities a n d use t o i m p r o v e design o f n e w works, but also f o r use in the expanded climate p r o o f i n g activities

YR2/3 assess detail o f coral monitoring f o r linkage to overall climate change agenda, but also t o i m p r o v e d integrated ecosystem management

Component Three:

1m;proved sustainability o f freshwater resources

N a t i o n a l Water Strategy (NWS) adopted and reflected in MPWU MOP and PUB business p l a n

YR1/2 a n d 3 gauge adequacy in

Master Plan for water o n Tarawa produced a n d reflected in MPWU MOP and PUB business p l a n N u m b e r o f rainwater collection/storage facilities at government/community buildings

linkages in the preparation o f the NWS, MP f o r Tarawa a n d ongoing consultations to ensure subsequent acceptability by all stakeholders

YR 2/3 Assess whether the rainwater tanks are m a k i n g a difference in increasing water availability

YR 2/3 Gauge whether reduction in

Building code includes freshwater

leakage i s increasing water availability f o r families in target areas

Percentage reduction in water leakage in target area o n B e t i o islet

YR 2/3 Gauge capacity o f local authorities in the use o f building

collection and storage as a n objective

N u m b e r o f water locations assessed and supply improvements implemented

codes

Component Four:

I m p r o v e d capacity f o r C C A at island government and community level

N u m b e r o f O u t e r Island Profiles that contain climate risk i n f o r m a t i o n

YR 1/2/3 Gauge understanding o f C C A in the OIs, a n d intensify awareness campaign if inadequate

N u m b e r o f Island Councils trained o n CCA roles a n d responses N u m b e r o f small scale adaptation investment grants awarded It grants awarded f o r soft solutions

YR 2/3 Assess whether criteria to

accessing the small scale adaptation investments are w e l l understood a n d adjust as needed

Support f o r implementation o f project activities

KAP-I1 Project management integrated i n t o SNPRA Unit in OB

YR 1/2/3 Gauge adequacy o f facilities f o r the U P - I 1 office:

Percentage o f project progress reports that are timely and reflect a g o o d understanding o f progress, critical issues, corrective actions, accountability f o r actions and timing.

h u m a n and equipment t o support a robust M&E reporting system

Lessons learned compiled f o r future adaptation program design

YR 1/2/3 Assess adequacy o f the

reporting system for the project in response to the various donor requirements

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ANNEX

4: DETAILED PROJECTDESCRIPTION

KIRIBATI ADAPTATION PROJECT- IMPLEMENTATION PHASE(KAP 11) T h e objective o f ICAP-I1 i s to develop and demonstrate the systematic diagnosis o f climate-related problems a n d t h e design o f cost-effective adaptation measures, whde continuing the integration o f CCA awareness a n d responsiveness into economic and operational planning. Ths objective i s derived from a n d governed by the national CCA strategy of June 2005. T h e objective does not require any a d h t i o n a l m a j o r functions to b e p e r f o r m e d by GoK agencies b e y o n d those already established or committed, but i t requires performance o f those tasks to b e substantially expanded a n d improved. ICAP-11â&#x20AC;&#x2122;s efforts will b e directed towards changing how existing functions are carried out, by modifying the attitudes, skdls a n d practices that govern how people interact with the c h a t e , and strengthening technical and financial capacity for planning and implementing CCA measures.

ICAP-I1 t h u s provides a n essential transitional stage in working out t h e content o f the long-term national response to climate change. I t will form a developmental bridge in 2006-8 between the initial NAPA a n d ICAP-I-sponsored national consultations and assessments o f v u l n e r a b h t y a n d adaptation options, w h i c h have run through 2003-5, a n d the longer-term countrywide a n d u n i f i e d application of CCA responses envisaged for 2008/9 onwards.

ICAP-11â&#x20AC;&#x2122;s outputs will consist o f changes to CCA-related institutional a n d operational arrangements, a n d the development and feasibility-proving of financial assistance schemes, design processes a n d physical works. T h e intended outcome i s that I h i b a t i wd,have the information, analytical capacity a n d technical know-how needed to adapt successfully to climate change in the years ahead. T h e project i s designed to p r o v i d e coordinated, mutually reinforcing a n d progress-monitored action to: strengthen the foundation for continued application o f CCA-based approaches to development at national a n d local levels nurture long-term public support for a n d participation in CCA p r o m o t e whole-of-government co-ordination in planning a n d operation o f critical programs develop mutually supportive linkages between CCA a n d other key national development strateges

prohbit l a n d uses a n d activities that destabhze coastal zones a n d assist those that i m p r o v e stability throughout I h i b a t i

re-establish nation-wide weather monitoring a n d reporting implement the f i r s t phase o f a long-term, CCA-inclusive, p r o g r a m o f freshwater resource development a n d supply management develop cost-effective climate-proofing o f public a n d private assets a n d apply the techniques to public assets at risk collaborate with other externally-funded interventions in CCA-related areas, eg, r i s k management, water strategy a n d building national planning capacity. T h e project addresses those aims through activities in five components, namely: 1: Policy, planning a n d i n f o r m a t i o n 2 : L a n d use, physical structures a n d ecosystems 3: Freshwater resources 4: Capacity at island a n d c o m m u n i t y level 5: Project management

T h e components are described below. T h e project design emphasizes the need for careful study o f pr oblem s be f o re u n d e rta k m g solutions, and for analysis of the perceptions a n d attitudes governing people’s behavior b e fo re designing interventions to change that behavior. O v e r the l i f e o f the project the balance o f activities s h f t s progressively from surveys a n d analysis towards implementation of physical improvements.

1. Policv. DlanninP a n d i n f o r m a t i o n 1.l. Frameworks and processes for particzpation and awareness. M u c h o f CCA a n d I(AP I1 are about changing people’s attitudes a n d understanding about the climate a n d the environment in w h i c h social a n d economic activity takes place. D i f f i c u l t a n d potentially unpopul ar choices l i e ahead for governments a n d communities. T h e process by w h i c h i m p o r t a n t a n d sometimes complex issues are canvassed a n d decided needs to b e carefully designed, so that the process itself builds t r u s t a n d increases understanding a mo n g those involved.

This sub-component comprises the analytical review, a n d redesign if necessary, of the consultation a n d participation process in use in I G r i b a t i to mobilise publ i c support for m a j o r p olicy initiatives such as CCA. I t i s to b e done as early as possible in the project, as it i s i ntended to shape

a n d inform several i m p o r t a n t consultative activities under t h i s a n d other components. Provision i s made for a c o m b i n a ti o n o f national a n d international expertise to review the current practice of consultative a n d participatory p l a n n i n g in IGri bati a n d propose changes where these appear necessary to i m p r o v e i t s effectiveness.

National consultation, particzpation and awareness. O n e of the strengths of I(AP I1 a n d i t s 1.2. c om panion programme, NAPA, i s the social a n d pol i ti cal foundati on p r o v i d e d by two rounds o f national consultations in 2002 a n d 2003. Insights gained there have hel ped to shape the I(AP I1 pr ogr am m e here described. This sub-component a i m s to sustain a n d b d d on that foundation, creating greater a n d m o r e competent awareness o f climate change a n d variabllity, a n d appropriate responses, throughout th e country. T h e activities wdl b e pl anned a n d coordinated by the PMU within OB’S SNPRA Unit, with close i n v o l v e ment from other members o f t h e NASC, i ncl udi ng IUNGO, AMAK, a n d th e C o u n c i l o f Churches. T h e design o f the activities wdl b e guided by the outputs of t he preceding sub-component.

Four specific consultation-related activities have been i denti fi ed during proj ect design. These are:

1.2.1. Twoyearly national consaltations. F u rther national consultations, with themes a n d content a bout aspects o f CCA to b e decided nearer the time, are provisionally scheduled for the thrd quarters o f 2006 a n d 2008. Ths roughly straddles the expected 2007 national parliamentary election a n d fouryearly review a n d ro l l -fo n v a rd o f N a t i o n a l D e v e l o p m e n t Strategies. 1.2.2. Regalar CCA-basedpartzczpatoy events. As the GoICs CCA strategy emerges in 2005-6 through I U P 11, NAPA a n d th e i n c l u s i o n o f CCA-related activities in MOPS, regular p r o m o t i o n a l a n d inf or m at ion a l events will b e organised with sporting, cultural a n d educational content a n d a clear CCA message. These will keep CCA in th e p u bl i c mind a n d convey useful i n f o r m a t i o n at several technical

a n d political levels. A p p ro p ri a te specialist advisers a n d trainers will b e obtained as national a n d international consultants to OB’S SNPRA Unit to work with t h e I U P I1 a n d NAPA office in preparing an d i mp l e m e n ti n g these events.

1.2.3. Newsletter, media releases, and educational material. I t i s expected that a regular CCA newsletter wdl b e established, carrying global, regional and l ocal CCA news a n d views. Interesting periodic a n d adhoc m e d a releases wdl keep CCA in the p u b li c mind, a n d collaboration with MEYS’s curri cul um unit will lead to t he in c l u s i o n of substantial a n d interesting CCA material in school curriculums. N a t i o n a l and r egional TA wdl b e m o b l l i z e d to assist in t h i s activity. 1.2.4. Annual suwy ofpublic attitudes and awareness. T h e general level of CCA-awareness a n d attitudes to t h e prospect o f changing life-styles a nd habits in order to adapt to CC wdl b e surveyed annually, f i r s t to establish a baseline for measurement of change, a n d later to assess the i m p a c t both of I(AP I1 a n d ot her deliberate interventions, a n d o f climatic a n d other events. N a t i o n a l a n d regional TA will b e c o m b i n e d to design a n d execute t h i s activity. T h e survey results will inform the design o f campaigns a n d consultative/participatory activities for the overall adaptation efforts a n d at the specific c om ponent / a c ti v i ty level, e.g., management of freshwater resources in South Tarawa. 1.3. Poliv coordination andpianning. As GoISs CCA strategy points out, i f CCA i s to succeed it must reach into almost a l l parts o f the p u b l i c a n d private sectors, a n d actions across a w i d e fi el d must b e coordinated s o as to complement a n d support each other. NDS2004-7 a n d the CCA pol i cy a n d strategy also m a k e clear that climate change i s a key area o f strategic risk for IQribati. For these reasons GoK has decided to place responsibility for pl anni ng a n d co-ordmating CCA in the portfolio o f OB a n d i t s SNPRA Unit. Similar strategic a n d risk-management considerations apply to populat ion policy, with w h i c h CCA has a close intellectual a n d practical connection. At the same ti me the c ont inued development, u n d e r th e guidance of MFED’s NEPO, o f the M O P - b a s e d government s t i l l requires further attention -is necessary for operational p l a n n i n g a n d monitoring system-which t he effective direction a n d c o n t r o l of GoICs m a n i f o l d activities.

Four activities have also been i d e n ti fi e d in &us sub-component, as follows:

1.3.1. Support NJRMin OB with overall responsibilipfor CCA . T h e SNPRA Unit has b e e n established by Cabinet decision in 2005, a n d will b ec ome operational in early 2006. Pressure on the n e w of fice will b e immediate, as i t has to take on ‘strategic risk management’ responsi bhty for CCA, population polic y a n d disaster management, a l l o f w h c h are waiting for i t s establishment to p r o v i d e t h e m with a n overseeing h e c t o r a t e . Integration o f i t s own a n d other ministries’ CCA responsibilities into the 2006 MOPSwill b e a priority concern o f OB/SNPRA Unit, in coordmati on with the NEPO in MFED. Technical assistance i s b e i n g p r o v i d e d to OB by AusAID. As IL4P I1 funds become available a n d t he SNPRA Unit gets into i t s stride th e coordination, monitoring and reporti ng o f CCA a n d I(AP I1 progress will become a key activity.

1.3.2. Development ofdsk diagnosis and response process. Earlier in the design process t h i s sub-component was perceived as ma i n l y applicable to coastal zone management a n d climate-proofing of structures at risk. I t i s now g i v e n wider significance u n d e r C o m p o n e n t 1, comprising the application o f risk management techniques a n d disciplmes to CCA issues generally, under the supervision o f the SNPRA Unit. This involves changing th e perceptions a n d attitudes o f practical, technical persons to t he p r o b l e m o f coastal zone management a n d asset p r o t e c t i o n under CC c o n d t i o n s . T h e required s h i f t i s from a reactive, single-technique strategy o f repairing damage as i t occurs, to a preventive a n d m o r e technically varied risk-mitigation strategy. Trai ni ng a n d workshop activities for MELAD a n d MPWU technical s ta ff u nde r t h i s sub-component should deliver t h e development a n d application o f i m p r o v e d me th o d s o f CC-related risk diagnosis a n d response design. By linkmg t h i s process to other sub-components o f IL4P I1 engaged with publ i c consultation a n d parti ci pation i t

should b e possible to reach m a n y m o r e people, and influence attitudes about the application o f CCA to m a n y parts o f n a ti o n a l a n d c o mmu n i ty life.

1.3.3. Support population and resettlement programmes. T h e strong link betw een CCA and population polic y i s stressed in the CCA Strategy. I(AP I1will provi de support to t h e i mpl ementati on o f GoISs p o p u l a t i o n policy, w h i c h i s also to b e located in the OB/NSRM portfolio. T h e proj ect will provide fundmg for l o n g -te rm national a n d short-term international consultant personnel in 2006-8 to work with GoK staff a n d the national consultative a n d coordinating institutions concerned with popul at ion policy.

1.3.4. Support NASC a n d CCST. T h e two-tier structure o f coordmati ng committees (NASC a n d CCST) has p r o v e n valuable in overseeing I U P Iand ensuring that proj ect design activities I(AP Iand NAPA do not b e c o me dsconnected. I t i s i m p o r t a n t that t h i s machmery i s k e p t in good workmg order. I(AP I1makes provision for th e costs o f regular meetings o f both NASC a n d CCST during the l i f e o f I U P 11. 1.4. Infomation for climate risk management. I(AP I1 aims to prepare peopl e to adapt to climate change. To do this, good-quality i n f o r m a t i o n on the nature of climate change must b e regularly made available in understandable form a n d gi ven w i de distribution in t h e context of consultative a n d participatory activities. I Q r i b a t i lacks base-line climatic data in suitable form for publ i c education and use, a n d has no established process for producing, updati ng a n d disseminating such i nformati on. Ths sub-component will p ro v i d e short-term international TA to work alongside MELAD s t a f f to set up a n appropriate system, a n d p ro d u c e the base-line data in usable a n d up-datable form. '

Climate monitoring systems. This small but i m p o r t a n t activity i s to restore the national m et eor ologc a l re p o rti n g system to operational effectiveness. I t wdl take about s i x months to complete. I(AP I1 provides funds for purchase o f equipment a n d costs o f training/retraining staff in i t s use. T h e p ro j e c t will b e i m p l e me n te d by the G o K - f u n d e d Meteorological Division o f MCTTD, assisted by TA organised in liaison with the World Meteorological Organisation under a r e g o n a l pr ogr am m e to support n a ti o n a l m e te o ro lo gcal offices.

1.5.

2. L a n d use. Dhvsical structures a n d ecosvstems This c om pon e n t i s crucial to th e l o n g -te rm success of GoISs CCA strategy. I t involves bringing about

substantial changes in p u b l i c understanding a n d attitudes to l a n d use in coastal zones-effectively most of the l a n d area of IQribati. Activities in t h i s component will m a k e changes to the way GoK a n d loc al governments intervene to modify or prohibit behavior that threatens coastal stability a n d t he security o f p u b l i c a n d private structures a n d other assets. T h e y wdl include systematic analysis of coastal r i s k s a n d causes of actual damage, leading to establishment o f i m p r o v e d design parameters for coastal-zone construction a n d m o r e cost-effective physical or behavioral responses to perceived risks. T h e c om pon e n t will include m o r e focused a n d coordinated assessment o f emerging risks to marine a n d land-based ecosystems, a n d i d e n ti fi c ati on o f ways of enhancing their abillty to adapt to climate change. T h e sub-components a n d k e y activities i denti fi ed during p r o j e c t design are as follows:

2.1. Integrating Climate Change Adaptation into Land Use Policzes 2.1.l. Raise awareness, strengthen rgulation and pemitting. T h e effectiveness o f GoICs permit t ing operations, overseen by the Foreshore Management Committee, i s i denti fi ed as a cause for concern in t h e CCA Strategy. 46

Immediately, m o r e intensive monitoring a n d measurement o f existing beach mining activities, w h c h collectively are r e m o v i n g substantial amounts of aggregate from South Tarawa beaches (while providmg a n i m p o r t a n t source o f income for a significant number o f households) i s required to establish a b a s e h e for change and enable the careful planning of tighter a n d m o r e effective restrictions a n d eventual prohibition.

N o t m u c h later, t h e planned prohibition of beach mining in all but a very f e w situations (envisaged for mid-2007) will require stronger implementation a n d probably some revision of existing legislation, together with m o r e effective co-ordination between national a n d local governments in South Tarawa.

Strong political coherence a n d commitment, assisted by public education a n d attitude-changing activities u n d e r C o m p o n e n t 1, will b e needed to m o b h e public support a n d carry through t h l s crucial reform. For t h l s activity I(AP I1 will provide national a n d regional TA to h e l p MELAD revise, expand a n d carry out i t s p l a n n i n g a n d regulating tasks.

2.1.2. Monitor environmental and economic impacts of a p g a t e mining project: As the lagoon mining o f aggregate (planned for late 2006) comes on stream i t s environmental i m p a c t will require close monitoring, a n d prompt feedback to enable any adjustments necessary to keep that i m p a c t at a n acceptable level. This activity will provide a combination o f international a n d locally recruited TA to set up effective monitoring a n d assist MELAD to carry i t out. 2.2. Improvingprotection ofpublic assets. This sub-component i s aimed at increasing MPWTJâ&#x20AC;&#x2122;s capacity a n d versaulity in c o n f r o n t i n g the i m p a c t of clunate change a n d the existing exposure to risk of damage from severe weather) in respect of public structures-seawalls, port facilities, roads, airfields, schools, hospitals/clinics, houses a n d workplaces-and m a k i n g t h i s enhanced capability avadable to the public through the established permitting a n d public-advisory process. Two m a i n activities are identified in t h i s sub-component: 2.2.1. Develop a ystematic risk, analysis/design response process and revised design parameters for coastal haxard protection. Specific training activities are envisaged for MPWU professional a n d technical staff, conducted by international TA. Exercises a n d feasibility studies will demonstrate use of systematic risk analysis, a n d the costs a n d benefits o f alternative design responses, including soft, i e nonstructural, solutions. F i e l d investigations a n d study of oceanographic a n d other climatic data (see sub-component 1.4, above) will p r o v i d e specific design parameters, eg for wave heights under storm conditions, t h a t can b e adjusted for changing climatic scenarios to help shape I G r i b a t i engineering, structure-sitting a n d soft-solution designs a n d CCA strateges.

2.2.2. Improve protection ofkypublic assets at ?irk.As design parameters for protective works emerge they will b e applied to selected p u b l i c assets in South Tarawa. Sufficient proving in a n 0 1 environment will also b e carried out to demonstrate feasibhty in m o r e r e m o t e a n d less developed settings. Reduction o f flooding risk at t h e national hospital at Blkenibeu, incorporation o f CCA factors in the design o f the South Tarawa r o a d upgrade project in 2006-7, the i m p r o v e d protection o f one or m o r e of the South Tarawa causeways, a n d the use of n e w seawall designs in economically signtficant locations, would all b e covered in h s activity.

T h e activity embodies sufficient flexibility o f funding allocations to enable it to function as a contingency resource in case of damage from severe weather requiring urgent attention during the p e r i o d o f IL4P 11. Monitoring and sustaining coastal ecoytems. Climate change i s putting coastal ecosystems under pressure, but there i s little specific i n f o r m a t i o n available on coastal ecosystems in IGribati, nor on whether any changes are mainly attributable to CC, including shoreline movement, or to other factors such as increased pressure from h u m a n activity. Tks sub-component will enable the E n v i r o n m e n t a n d Conservation Division o f MELAD a n d the Fisheries Division of MFMRD to undertake wider a n d m o r e effective monitoring operations. I t will combine international a n d national expertise to draw together i n f o r m a t i o n on the impact o f c h a t e change on coastal ecosystems a n d shorelines, set up monitoring systems a n d develop ways to analyse data a n d p l a n systematic responses to identified threats. Lump-sum provision i s made for small investments in pilot schemes to protect endangered ecosystems identified during the monitoring activity.

2.3.

Freshwater resources.

This component combines the n o r m a l operational commitments of MPWU a n d t h e water division of PUB with additional external inputs. These are to b e fmanced by Australian aid through a t r u s t fund established with the World Bank. T h i s i s expected to become operational at t h e start o f 2006, several months before GEF funds become available. A d d i t i o n a l inputs to b e financed include national, regional a n d international TA a n d the purchase o f equipment a n d services, i n c l u d m g contracting o f unskilled labour on water supply projects.

3.1. Update waterpdiy, standards and capabilities to indude CCA. This sub-component i s duected to the w h o l e country. Activities include development o f a N a t i o n a l Water Policy to p r o v i d e a 20-30 year framework for freshwater resource planning; building capacity in MPWU a n d PUB to adopt a systematic, medium-term approach to water resource development a n d management incorporating i n f o r m a t i o n on clunate variability a n d climate change; revision of national building codes to strengthen aspects relating to freshwater management (including rainwater) a n d sanitation; a n d development a n d promotion o f guidelines on rainwater catchment, storage a n d use. IL4P I1activities supporting development o f the N a t i o n a l Water Policy a n d other related activities are b e i n g defined in cooperation with the I G r i b a t i component o f the EU-funded, SOPAC-executed

Pacific Programme for Water Governance

3.2. Soutb Tarawa water plannin& remedial actions and pilot projects. Pressure on t h e water resources a n d supply systems of IQribatiâ&#x20AC;&#x2122;s m a i n island i s expected to increase under conditions o f p o p u l a t i o n growth, greater climate variability a n d continuing climate change. T h i s sub-component will assist MPWU a n d PUB to prepare a master p l a n for water in Tarawa atoll, carry out assessments a n d pilot projects a n d studies to identify a n d increase available resources.

Funds w d b e provided to carry out intensive repairs a n d other measures to reduce losses from the installed systems. Activities aimed a t increasing future availability of freshwater will include n e w approaches to obtaining access to known additional water reserves, pilot projects in rainwater collection a n d storage, a n d study of the feasibility o f creating a d d t i o n a l freshwater lens capacity by reclamation o f land.

3.3. Outer Islands assessments and public and private y t e m upgrades. O u t e r Islands freshwater systems are widely in need o f repair a n d upgrading. Assessment, prioritization a n d design n e e d to b e promptly 48

followed by systematic improvement. This sub-component wdl enable t h i s work to b e undertaken incorporating climate variability a n d change factors. A grant scheme based on the success o f a somewhat sirmlar scheme in South Tarawa, to assist 01 households to invest in rainwater catchment possibly to install water-saving sanitation systems-wdl b e piloted, a n d if a n d storage-and successfd, extended. As t h s sub-component develops m o m e n t u m there will b e scope for allocation a n d use of addition external funding from other donors who are interested in assisting 01 development a n d welfare. CaDacitv at island a n d communitv level 4. This component targets administrative and planning capacity a t the sub-national level, w h i c h i s critically i m p o r t a n t to the sustainability o f CCA. With the help o f a m a j o r UNDP project2, MISA i s currently initiating m a j o r efforts to i m p r o v e island-level administration a n d community participation in governance. U n d e r that project ‘island profiles’ are being updated a n d expanded, spatial a n d statistical i n f o r m a t i o n i s being put onto a GIS data base; a n d funds are being sought for 0 1 ‘growth centre’ planning and investment. I t i s very i m p o r t a n t that these developments are all fully CCA-conscious a n d that islandlevel CCA design responses are w e l l coordmated. T h e fullest possible development and use of GISbased i n f o r m a t i o n on t h e physical condition o f each island i s potentially o f tremendous CCA value.

At national level OB through i t s SNPRA Unit has oversight o f the concern for coordination, sharing o f i n f o r m a t i o n a n d collaboration in project planning a n d implementation. At island a n d local

government level-including, very importantly, the u r b a n governance o f South Tarawaresponsibility will rest with MISA, assisted by I(AP I1 funding a n d h e l p with participatory planning and inscollaboration with MELAD on coastal zone management.

Four sub-components identified in project design are briefly described below.

4.1. Local consultations and particz3atoy ksk assessments. Increased efforts at national level to i m p r o v e public understanding of, a n d participation in, CCA will need to b e backed up by similar efforts at island a n d c o m m u n i t y level. Provision i s made for short-term international a n d longer P term/periodic national TA to assist in design a n d conduct o f these efforts a n d for the cost o f 5-10 meetings to support development a n d implementation of i m p r o v e d participatory methods in 0 1 s a n d South Tarawa.

4.2. Training in localgovernment CCA roles and reqonses. Councilors a n d staff wdl benefit from specific training in how to analyse situations arising from CC, a n d how best to use resources available to t h e m in response. Provision i s made for design a n d implementation o f a training programme in selected 0 1 s and South Tarawa. Programme content will also reflect activities taking place under other components o f I U P 11. 4.3. Include CC vulnerabilio in Olprojles. Provision i s made for national a n d international TA to ensure that CCA-related information i s captured a n d presented usably in the GIs-based 01 profiles. 4.4. Pilot small scale O I adaptation investments scheme. This activity will test the feasibility of a grant scheme to assist small-scale CCA-related investments by communities in O u t e r Islands. Rules for e l i g i b h t y a n d adrmnistration have been developed with WB guidance during I(AP I1 project design, a n d are Strengthening Decentralized Governance in Kiribati, a US$lmproject over three years

described in a Procedures M a n u a l for t h l s activity. Two O u t e r Islands are bei ng selected for the pilot scheme, chosen to b e representative o f larger, m o r e developed and smaller m o r e remote locations. T h e scheme w d b e managed by MISA in accordance with the Procedures Manual.

P r o m a m manapement

5.1. Operation ofprogram management #nit witbin OB. I t i s i ntended to keep the I(AP Ip r o g r a m office in operation a n d h a v e i t seamlessly assume responsibility for I(AP I1 (including the current project manager a n d th e p ro j e c t accountant). I t will b e particularly i m p o rta n t to observe the procurement a n d reporti ng requirements of both GoK

a n d WB, t h e latter acting on behalf o f GEF, AusAID a n d NZAID. Provision i s made for special training in pro c u re me n t procedures a n d for the addi ti on o f a procurement officer a n d a general pr ojec t of f ic e r to th e p r o g r a m office staff from the start o f 2006 for the l i f e o f IC4P 11.

5.2. Program ofactimxies. A P ro g ra m of Activities to b e financed from the proj ect wlll b e prepared prior to im plem en ta ti o n at the beginning o f each year. Worlung on the basis o f a P rogram o f Activities should: (i) a l l o w for the operationalization o f a simplified reporti ng system; a n d (ii)speed-up im plem ent a ti o n as activities for funding are planned for up-front a n d pre-approved by the B a n k / O B a n d MFED a n d shared with AusAID a n d NZAID for comments a n d suggestions. T h e P r o g r a m of Activities would b e prepared by the PMU no later t h a n mid-January o f each i mpl ementati on year. T h e P r o g r a m o f Activities must take into account the relevant Procurement Plan, w h i c h becomes a n appenh. Economic assessmentsfor larger investmentpachugex For some larger investments to b e funded u n d e r IC4P 11, comparative cost-benefit analyses are required; for example for the rehabhtati on o f t h e hospital a n d t he causeway.

Although the TA to b e h i r e d would b e expected to carry out the required analysis, (NEPO) in MFED, who routinely

it i s i m p o r t a n t that the N a t i o n a l E c o n o m i c a n d P l anni ng O f f i c e

carry out such analyses, are consulted from the activitiesâ&#x20AC;&#x2122; inception.

5.3. Review o f U P 11.Financial provision i s made for m i d - t e r m a n d end-of-project reviews o f I(AP 11.

ANNEX

5: P R O J E C T COSTS

KIRIBATIADAPTATIONPROJECT

- IMPLEMENTATION PHASE(KAP 11)

Project Cost by Component Local

Project Cost By Component

US $million

Foreign US $million

Total

US $million

Policy, p l a n n i n g a n d i n f o r m a t i o n L a n d use, physical structures, a n d ecosystems Freshwater resources Capacity a t i s l a n d a n d c o m m u n i t y level P r o j e c t Management

0.68 1.52 1.31 0.46 0.29

0.49 0.66 0.86 0.10 0.10

1.17 2.17 2.16 0.55 0.39

Total Baseline Cost

4.26 0.08

2.20 0.04

6.46 0.12

4.34

2.24

6.58

Physical Contingencies P r i c e Contingencies

Total Project Costs

Total Financing Required

Project Cost by Financier (estimated)

Policy, planning and information Land use, physical structures, and

0.81 0.40

0.00 0.00

0.00 0.76

0.37 1.05

1.17 2.17

Total Project Costs (Jhtimated)

1.80

1.49

0.97

2.31

6.58

A N N E X 6: IMPLEMENTATION ARRANGEMENTS

KIRIBATI ADAPTATION PROJECT - IMPLEMENTATION PHASE(KAP 11) Stakeholder Involvement K e y stakeholders in the project are all key actors who have a p a r t to play in the long t e r m mainstreaming o f adaptation in national and local planning a n d policies. Strength of the I U P - I process has been t h e early mobilization o f these stakeholders in a cooperative a n d coordinated process o f awareness, consultation a n d strategy formulation. This coordination i s expected to b e a central element o f all future phases of I U P as well.

At the island level stakeholders include village populations a n d subgroups that are actually

experiencing the consequences a n d impacts of changes in their environment a n d quality o f life, resulting from climate events. This includes households, extended household groups (kainga), traditional vdlage i n s t i t u t i o n s (such as the unimwane or traditional elder male decision m a k m g body), church groups (especially the I G r i b a t i Protestant C h u r c h a n d t h e Catholic Church), womenâ&#x20AC;&#x2122;s a n d youth groups, a n d t h e village population as a whole, w h i c h congregates at the traditional village meeting houses, or maneaba. T h e social assessment a n d local level consultations mobilized these key groups in a n i n i t i a l assessment o f vulnerabilities a n d possible c o p i n g mechanisms. Representatives from the unimwane, womenâ&#x20AC;&#x2122;s groups, a n d youth from key populated O u t e r Islands were present at the two N a t i o n a l Consultations h e l d in Tarawa (for G i l b e r t Island representatives) a n d IQritimati (for L i n e Island Group representatives), where their concerns a n d recommendations were both shared with one another a n d communicated to the national level. O t h e r key stakeholders at the Island L e v e l include the Island Council, island level church organizations, key subcommittees o f the Island C o u n c i l (particularly the Development Committee), a n d locally seconded representatives o f central government (such as the head nurse o f the island c h i c , the Island Project Officer, agricultural officers a n d others). M a n y o f these - a n d notably the C h e f Councilor (elected head o f the Island Council) a n d C h i e f Clerk - were participants at the N a t i o n a l Consultations.

At the national level key stakeholders include: 0

T h e N a t i o n a l G o v e r n m e n t as a whole, as represented by the O f f i c e of T e Beretitenti, or Beretitenti, w h i c h also chairs the Cabinet. N a t i o n a l Ministries, particularly those germane to c h a t e change issues, includmg:

MFED - Ministry o f Finance a n d E c o n o m i c D e v e l o p m e n t MELAD - M L n i s t r y o f Environment, L a n d a n d Agriculture D e v e l o p m e n t MPWU - Ministry of Public Works a n d Utillties MISA - Ministry o f I n t e r n a l a n d Social Affairs MFMRD - w s t r y o f Fisheries a n d M a r i n e Resources D e v e l o p m e n t MLPID - Ministry o f L i n e a n d Phoenix Islands D e v e l o p m e n t MHMS - M i n i s t r y o f H e a l t h a n d M e d i c a l Services MCTTD - W s t r y o f Communications, Transport a n d Tourism D e v e l o p m e n t 0

O t h e r Ministries with indirect links to climate change adaptation:

o M CIC - Ministry o f Commerce, Industry a n d Cooperatives o MEYS - Ministry o f Education, Youth a n d Sports o 0

MFAI - Ministry of Foreign Affairs a n d I m m i g r a t i o n

Civil Society, notably the IQribati Association o f NGOs (IUNGO) members, t h e women's organization Churches

a n d i t s constituent

All W o m e n o f I h b a t i (AMAK) a n d the C o u n c i l o f

T h e private sector, as represented by the I Q r i b a t i Chamber of Commerce

These stakeholders have also been ongoing participants in the consultation a n d planning process, a n d have h a d several opportunities (as at the N a t i o n a l Consultations) to interact with village a n d islandw i d e stakeholders from the Outer Islands. O n e o f the key strengths o f I U P - I has b e e n i t s direct support for the N a t i o n a l Development Strategy and MOPSas key tools for mainstreaming - the I U P consultants responsible for mainstreaming were also those assisting MFED with NDS and MOP development. T h e processes o f local and national consultation, as initiated in IUP-I, p r o v i d e a unique opportunity in I G r i b a t i for the development o f a n adaptation process based on actual needs as expressed from the lowest levels, communicated to a n d through island-wide bodies a n d institutions a n d incorporated at the national level through both policy a n d Ministerial Operating Plans. Ultimately each m a j o r island i s expected to develop mechanisms by w h i c h decisions are made concerning adaptation priorities, a n d a n assessment made concerning w h c h measures can b e implemented by people at t h e local level, w h i c h require assistance at the island-wide level (through, e.g., the Island C o u n c i l or I s l a n d C h u r c h Councils) a n d w h c h need to b e communicated to the national level for inclusion in annual budgets. As such, the ICAP process would go h a n d in h a n d with a strengthening of local governance a n d participatory planning processes, w h i c h i s also expected to b e assisted by a UNDP governance operation. Finally, GEF, AusAID, NZAID, the World B a n k and, by extension, other donors are i m p o r t a n t stakeholders both with respect to providmg support for these processes, as w e l l as by gaining experience on the modalities by w h c h adaptation to climate change can b e effectively mainstreamed into national development processes. T h e I G r i b a t i experience i s providing i m p o r t a n t lessons w h c h are instrumental in t h e approach taken by global funding facilities with respect to such issues as incremental funding, a n d modalities o f cooperation in addressing local a n d global issues related to climate change.

Coordination between NAPA and KAP and GEF Implementing Agencies T h e preparation o f IGribati's N a t i o n a l Adaptation Programme o f A c t i o n (NAPA), supported by a Least D e v e l o p m e n t Country Fund grant o f US$200,000 has been closely l i n k e d to t h e preparatory work under I U P - I . T h e merger o f I U P a n d NAPA processes, though desirable from both t h e i m p l e m e n t i n g agencies (World B a n k a n d UNDP) as w e l l as the Government, has not been a n easy process. NAPA i s sponsored by UNDP a n d executed by MELAD. ICAP-Is sponsored by the World B a n k a n d executed by MFED. Ths dual arrangement arose from both national a n d global forces.

Historically, climate change issues in IGribati have been the mandate o f MELAD (and i t s predecessor, the Ministry o f E n v i r o n m e n t a n d Social Development). MELAD headed t h e national team under the Pacific Islands Climate Change Assistance Programme (PICCAP) a n d was responsible for preparing both the N a t i o n a l Communications (1999) as w e l l as the Climate Change N a t i o n a l Implementation Strategy (2003). G l o b a l negotiations also favored UNDP as the GEF implementation agency for the N a t i o n a l Adaptation Program o f A c t i o n (NAPAs), a n d MELAD secured a NAPA grant in early 2004.

Whilst MELAD included the bulk of the technical expertise on climate change,

it lacked the

institutional leverage to influence the programs o f other vital sectoral Ministries, such as Public Works, Internal Affairs, or Fisheries and N a t u r a l Resources. This was recognized both within in IGribati, as w e l l as regionally. During early consultations on IUP-I, i t was therefore decided that the O f f i c e o f T e Beretitenti would chair the IL4I"s Adaptation Steering Committee, a n d the M i n i s t r y o f Finance and E c o n o m i c Development would execute the project. This arrangement w o r k e d w e l l in mainstreaming adaptation into economic planning, but it w o r k e d less w e l l in m o b i l i z i n g the technical experts necessary to prioritize MOP adaptation investments. In parallel, the NAPA team has m o b i l i z e d t o prepare a NAPA in accordance with strict UNFCCC g u i d e h e s . T h e process o f merging of the two teams has been approved by Cabinet as follows: T h e NAPA a n d I U P programs are merged a n d will result in a single national adaptation strategy covering a full range of responses at government, community a n d household levels; as w e l l as a NAPA to communicate the most urgent a n d immediate needs to the UNFCCC. T h e I(AP Steering Committee has been reestablished under a n e w name, N a t i o n a l Adaptation Steering Committee (NASC), under the O f f i c e of T e Beretitenti. T h e IL4P Project Management Unit will b e the Secretariat for the Steering Committee. T h e NASC oversees the joint work p r o g r a m for the NAPA a n d IL4P. T h e existing NAPA T e a m has become the Clunate Change Study T e a m (CCST), the technical team for the u n i f i e d program, reporting to the Steering Committee. T h e NAPA Management Unit has been acting as the Secretariat for the CCST.

Two separate project management u n i t s have continued to exist to execute I U P - I funds (under

MFED) a n d NAPA funds (under MELAD).

T h e O f f i c e o f T e Beretitenti i s responsible for overall supervision of t h e u n i f i e d climate change program. These arrangements wdl need to b e closely m o n i t o r e d with a v i e w o f ensuring a fully u n i f i e d institutional arrangement for IL4P-I1 a n d b e y o n d (see n e x t section). O t h e r G E F - f u n d e d projects in I G r i b a t i include e n a b h g activities for t h e S t o c k h o l m Convention on Persistent Organic Pollutants (POPS),in order to prepare a N a t i o n a l I m p l e m e n t a t i o n Plan, as w e l l as enabling activities for the UN C o n v e n t i o n on Biodiversity, in order to prepare a N a t i o n a l Biodiversity Strategy and A c t i o n Plan, a n d Country R e p o r t to the UNCBD (managed by UNEP a n d UNDP respectively, and implemented by the Ministry o f Environment, Lands, a n d Agriculture Development, MELAD). IGribati i s also participating in the regional Pacific Invasive Species Management Project (managed by UNDP). Wherever overlaps between these projects a n d IL4P c o u l d occur (for instance in the case of investments related to biodiversity conservation), close coordination would b e sought by the continuous involvement o f MELAD officials in the program.

ImplementationArrangements for KAP-I1 T h e f inal im p l e me n ta ti o n arrangements for

ICAP-I1are as follows (see also the figure below):

Overall Coordination. T h e O f f i c e o f T e Beretitenti (President) has overall coordinating responsibilities for ICAP-11. P r o j e c t management functions will b e housed under t h e Strategic N a t i o n a l P ol i cy a n d hsk Assessment Unit (SNPRAU). T h e Secretary to the O f f i c e o f T e Beretitenti, who also heads the SNPRA Unit, wdl act as Project D i re c to r. Besides her, t h e SNPRA Unit will have two senior p olicy officers (at D i r e c t o r level). The project will be contributing two additional senior policy level

positions in the S N P R A Unit: a Senior Strategic Risk Management Officer (at Director level) who would act as Project Coordinator, and whose primary responsibilities would be policy and coordination matters related to KAP I1 and implementation o f adaptation strategy; and a senior policy position to coordinate and plan action on population issues. The Project Coordinator would liaise with the PMU, which would consist o f a project manager, a project accountant, a procurement officer, a general project officer, mainly charged with monitoring and reporting, and a project assistant. An Ad@tation/Risk Management Steering Committee (derived from the ICAP-I N a t i o n a l A daptat ion Steering Committee, NASC) i s responsible for promoting a n d monitoring coordi nati on a m o n g

pr ojec t activities across t h e i mp l e m e n ti ng agencies, i ncl udi ng the utilization a n d sharing of technical expertise. T h e Steering C o m m i tte e wdl b e chaired by t h e Secretary for the O f f i c e of T e Beretitenti, a n d consist of senior officials from th e m a i n i mpl ementi ng agencies, a n d representatives o f ICANGO, A M I < , t he C o u n c i l of Churches, a n d the Chamber of Commmerce. T h e Steering Cormnittee will r epor t to t h e D e v e l o p m e n t C o o rd m a ting C ommi ttee (DCC), a permanent body composed o f Secretaries of a l l th e Ministries, chaired by the Secretary to the Cabinet (based at the O f f i c e of T e Beretitenti). T h e Steering C o m m i tte e will b e assisted by a n inter-sectoral Technical Team, responsible for day-to-day technical coordination, a n d derived from the Climate Change Study T e a m (CCST). T h e Steering Com m it t ee a n d Technical T e a m would b e expected to assisting the Strategic fisk Management Division not only in managing ICAP, but also other hazard risk management initiatives in K i ri bati . T h e O f f i c e o f T e Beretitenti, through the PMU, would b e responsible for overall proj ect financial management (following existing Go v e rn ment accounting a n d budget procedures), i ncl udi ng audits, financial r ep o rti n g a n d allocation of funds to components a n d activities i denti fi ed in the MOPS. T h e implementing agencies will b e th e key ministries/departments i n v o l v e d in activities related to climate change a n d adaptation to c h a t e change. Ths i s expected to i ncl ude pri mari l y t h e M i n i s t r y o f E nv ir onm en t, L a n d s a n d Agriculture (MELAD), the Ministry of P ubl i c Works a n d Utilities (MPWU), the Ministry o f Fisheries a n d M a r i n e Resources D e v e l o p m e n t (MFMRD), the M i t l l s t r y o f I n t e r n a l a n d Social A f f ai rs (MISA), a n d th e M i n i s t r y o f Commerce, Transport a n d Tourism D e v e l o p m e n t (MCTTD). E a c h o f these agencies will b e responsible for i mpl ementati on of activities contained in their Ministry Operational Plans fu n d e d by the project. T h e PMU would support the h e ministries by providing procurement, fmancial management, a n d proj ect management services. T h e m a i n im plem ent in g agencies would coordinate their activities through the Steering C ommi ttee a n d Technical Team, a n d would share a n d exchange technical expertise in any instance in w h l c h activities undertaken by o n e agency are likely to affect, or b e affected by, areas addressed by another agency. MISA will b e th e leading agency for th e Pilot Isl and A d a p t a t i o n C omponent. I(ANG0 and/o r t h e C o u n c i l o f Churches wdl play a n active r o l e in facilitation a n d awareness. Mainstreaming into t h e

MOPSa n d the 2008-2011 NDS will b e the joint responsibility o f the SNPRA Unit a n d the N a t i o n a l E c o n o m i c P l a n n i n g O f f i c e in the M i n i s t r y o f Finance and E c o n o m i c Development. Furthermore, the N a t i o n a l E c o n o m i c Planning O f f i c e (NEPO) wdl also play a n i m p o r t a n t r o l e in the provision of economic analysis for specific components of IUP-11, in particular the options analysis for adaptation investments. T h e quality o f project implementation will b e ensured by the attention a n d capacity built during IUPâ&#x20AC;&#x2122;s preparation. I U P - I project management i s currently carried out by a n a l l I - I G i b a t i team a n d they are experienced in B a n k financial management, reporting a n d initial p r o c u r e m e n t procedures. This team i s expected to continue in IUP-11, t h u s ensuring continuity a n d capacity retention. Technical oversight will b e done at three levels: First, through the national Technical T e a m (currently CCST) a n d Steering Committee (currently NASC) under the O f f i c e o f T e Beretitenti, w h c h reports directly to the Secretary to the Cabinet. Second, the project includes a budget for m i d - t e r m a n d endof-project review to assess the progress o f implementation in the pilot islands a n d sites chosen by the national adaptation investments. Results o f t h i s technical audit would b e used to adjust a n d i m p r o v e subsequent implementation. Finally, the World B a n k will exercise close oversight o f the national investment. In order to do so, the World B a n k will evaluate options to minimize travel costs to pilot island sites, includmg, inter alia, contracting out detailed supervision in advance o f regular biannual supervision m i s s i o n s .

Institutional Arrangements for KAP-I1

ANNEX 7: FINANCIAL MANAGEMENT AND DISBURSEMENT ARRANGEMENTS

KIRIBATIADAPTATION PROJECT- IMPLEMENTATION PHASE(KAP 11)

T h e desired outcome/result o f project financial management (FM) arrangements i s that project funds, including counterpart funds where applicable, wdl b e used for t h e purposes intended. T h e identified fmancial management risk, i s of the t r u s t fund proceeds not b e i n g used for the purposes intended, a n d i s a result of a combination o f country, sector a n d project specific risk factors. T a k i n g into account t h e risk mitigation measures proposed the FM risk r a t i w for this Droject i s

moderate.

T h e G o v e r n m e n t of I G r i b a t i (Go10 has expressed a strong preference for the project to follow the n o r m a l GoI< processes for D e v e l o p m e n t projects. T h e core FM arrangements for the project will m a k e use of the GoK financial management a n d budget systems w h i c h have been assessed as reliable and robust but w h c h cannot provide management reporting in sufficient detail for project monitoring purposes. A parallel i n f o r m a t i o n system wdl therefore b e maintained to provide management information. Project funds wdl flow through the Governmentâ&#x20AC;&#x2122;s budget a n d accounting processes a n d b e disbursed against a project code in the Development Budget. Advances wdl b e made directly to the Governmentâ&#x20AC;&#x2122;s N u m b e r 4 B a n k A c c o u n t (the development project b a n k account) a n d b e accounted for as a virtual Special Account. T h e Government uses a warrant system to ensure that funds received are used for the purposes intended. Although the N u m b e r 4 B a n k A c c o u n t forms p a r t of t h e overall G o v e r n m e n t cash position, the risk of advances being used to finance other short t e r m needs o f G o v e r n m e n t i s low (GoK has reserves in excess of 5 times annual recurrent expenditures). There i s a need to ensure that adequate accountability mechanisms are established for both the O u t e r Island G r a n t scheme a n d the O u t e r Island community development grant scheme for roof catchment a n d sanitation. T h e procedures for the O u t e r Island grant scheme have been established, while those for the O u t e r Island community development grant scheme for roof catchment a n d sanitation are to b e developed during the f x s t year o f implementation. I t i s therefore recommended that no disbursements for t h e O u t e r Island community development grant scheme for roof catchment a n d sanitation b e made until the project has submitted to the B a n k a satisfactory Procedures Manual.

A single disbursement category WU I b e used in each legal agreement w h i c h will significantly reduce

t h e b u r d e n o f reporting for the G o v e r n m e n t without negatively i m p a c t i n g on t h e Bank; however a n additional hsbursement category relating to the O u t e r Island c o m m u n i t y development grant scheme for roof catchment a n d sanitation d b e required so as to a l l o w monitoring o f the proposed disbursement condition. Initially, disbursement on the project will b e transaction based, however the legal agreements will contain provisions for the adoption of r e p o r t based disbursement as i t i s expected that the implementing agency will reach the necessary standards o f reporting a n d accounting rapidly.

Summary Project Description T h e primary activities of the Project are: (i) to fund priority adaptation measures mainstreamed into t h e Ministerial Operating Plans o f K e y Sectoral Ministries; (ii)to fund pilot c o m m u n i t y based to fund adaptation investments in two pilot islands according to a whole-island approach; (iii) periodic national consultations, awareness, a n d consultation in islands targeted for the expansion phase; a n d (iv) to fund training, priority stuhes, a n d project management.

Implementins En tity T h e pr ojec t will b e implemented by the O f f i c e of t he Beretenti w h i c h i s in the process of establishing a N a t i o n a l Strategic Risk Management Unit. To reduce the incremental b u r d e n on th e OB, a pr ojec t management unit will b e established (a feature carried over from the f i r s t phase o f th e project). T h e PMU will b e responsible for processing o f payments / budgets through t h e G o v e r n m e n t systems, maintenance of a parallel i n f o r m a t i o n system and ensuring that the two systems are reconciled. In addition, the OB m a y issue departmental warrants to the M i n i s t r y o f Works for it em s t h a t are to b e procured using â&#x20AC;&#x153;Force Accountâ&#x20AC;?. T h e PMU will assist the Ministry o f Works in t he p r o p e r acquittal o f warrants issued. T h e PMU loc a te d within the I(AP1 project has a senior accountant responsible for the preparation o f reports a n d t h e processing of payments - i t has been agreed that t h i s person will also b e employed u n d e r IUP-11. G i v e n the expected increase in t he v o l u m e o f transactions, a further m em ber of s ta ff will b e added to the PMU to assist in general pr oj ect implementation, i ncl uding frnancial management.

Kisk Analysis T h e table b e l o w summarizes the risk analysis. With t he appropriate risk m i ti gat i on measures as o u h e d t he o v e ra l l risk assessment i s moderate.

%r:

-0

4 W

A Y

.-x E: a

Budgeting

Prior to pr o j e c t effectiveness the GoK will approve t h e proj ect through the D evel opment Coor dinat io n C o d t t e e for i n c o rp o ra tio n into the FY06 budget document. D evel opment projects

are not subject to Parliamentary appropriation per se but once incorporated into the Budget Doc um ent , th e M i n i s t e r of Finance m ay issue warrants on receipt o f funds from the D evel opm ent partner.

On a n annual basis there wdl b e a n agreed set of activities derived from the project would l s b u r s e .

MOPS,against w h i c h the

Funds FIow and Disbursement Arrangements T h e d a g r a m b e l o w summarizes the

fund flow arrangements.

T h e B a n k will advance funds in AUD sufficient to meet 4 months of expenditure to a vi rtual Special A c c o u n t h e l d in t h e GoK N u m b e r 4 D eve l opment Budget B a n k A ccount. As there will b e m o r e than one legal agreement the authorized allocations will need to b e determined for each agreement, but the aggregate should not exceed AUD 500,000. On receipt o f funds, the G o K will issue the necessary warrants to the O f f i c e o f the Beretenti who wdl t h e n have t h e legal authority to expend the funds. T h e PMU will, in th e f i r s t place, prepare monthly w i thdraw al applications on a transaction basis in order to replenish funds expended triggering another cycle of warrants etc. T h e legal agreements would pr ov i d e for the transition o f the proj ect into r e p o r t based disbursement - t h i s would b e expected to h a p p e n within th e f i r s t year o f the proj ect l i f e once reconcdiation procedures between t he G o v e r n m e n t accounting a n d p ro j e c t i n f o r m a t i o n system has shown t h e m to b e robust.

Country F in a n c i n g Parameters have not been prepared for IGribati. T h e disbursement percentage will b e set at 100% but th e legal agreements will specify that expenditure on certain items (Tax, insurance a n d i n l a n d freight) will not b e eligible for financing from t h e Trust Funds. Moreover, t h e government will also b e specifically endorsing to the B a n k that they will not b e chargmg these costs to the grants. A special case will b e made in respect o f the reasonable share o f the safeguard costs i ncurred in m a k i n g materials available on O u t e r Islands. T h e B a n k recognizes that the use o f commercial shipping lines by suppliers exposes both the supplier a n d the DoW to a n unacceptably high level of risk of misappropriation (which cannot b e insured against). In order to mitigate against t h i s risk t he B a n k agrees that th e DoW should assume responsibdity for the supply chain to the O u t e r Islands through charter operations th e costs o f w h i c h would b e covered u n d e r incremental operating costs.

A single disbursement category will b e used in each legal agreement plus additional disbursement

categories required for th e monitoring of disbursement conditions - the need for addltional l s b u r s e m e n t categories was considered but in t h i s case i s not justified. T h e key in determining e x p e n l t u r e eligibllity wdl b e th e annual activities l i s t derived from the MOPSo f L i n e Ministries.

T ICI

Financial Reporting T h e OB will b e t h e implementing agency for the project a n d i t i s expected that the current project management unit w d transfer to t h i s office and operate under the SNPRA Unit. G i v e n the increased v o l u m e o f transactions a n d the requirement to adrmtllster the Small Grants Scheme it i s recommended t h a t a n additional two staff members b e recruited for the PMU (one who would b e an experienced junior accounts person a n d the other acting in support o f procurement). T h e PMU will therefore require a d d t i o n a l workmg space and additional equipment (includmg access to the MFED Attach6 accounting system - h s c o u l d b e through the existing OB link). Consideration was given t o utillzing the existing resources available w i h the GoK accounts cadre to undertake the FM work. Tks would have placed an undue b u r d e n on the h t e d resources available w h i c h are already over stretched (and m a y b e a cause o f processing delays). T h e Department o f Works (DoW) will play a n important r o l e in the acquittal o f activities on Outer Islands w h i c h will b e managed through the issue o f Departmental Warrants (DW) by the OB. T h e DW will b e restricted to those items w h i c h are requked to b e p r o c u r e d u n d e r â&#x20AC;&#x153;Force Accountâ&#x20AC;? arrangements on O u t e r Islands w h c h would typically include labor; l o c a l materials; local plant and equipment; a n d accommodation costs o f supervisors. T h e PMU will need to b e prepared to support the DoW in the process o f acquitting these warrants as expenditures wdl not b e eligible for inclusion on a WA until acquittal has been received. T h e DoW will also receive materials procured on their behalf a n d will b e required to account for the use of these materials (a stock c o n t r o l system i s already in place w h i c h i s capable o f accounting for materials at a Job level) - i t will b e a requirement that the DoW provides stock reports a n d a n o t e wdl b e included in the project financial statements indicating the levels o f stock held. T h e PMU will adapt the systems currently in place for I(AP1 for use in IUP-I1 (a manual cash book supported by Quick Books accounts software) a n d t h i s will p r o v i d e the necessary financial information. Reports will b e prepared on a quarterly basis a n d submitted to t h e B a n k within 45 days o f the quarter end. An a d d t i o n a l requirement will b e to show reconciliation as between the project i n f o r m a t i o n systems a n d the accounting records o f G o v e r n m e n t (includmg r e c o n c h a t i o n o f the V i r t u a l Special A c c o u n t as represented by the Project Code within the D e v e l o p m e n t Budget). T h e expendture reports would b e against the agreed l i s t o f activities for the financial year.

Accounting Policies and Standards - T h e accounting standard to b e used will b e Financial Reporting under the Cash Basis of A c c o u n t i n g as set out in t h e International P u b l i c Sector A c c o u n t i n g Standards (IPSAS). Auditing

T h e O f f i c e of the Auditor General under the relevant legislation i s mandated to audit the financial accounts of Government. I(AP-I1 audited annual reports db e available to donors not later than 6 months after the e n d o f each GoK financial year. T h e audit reports wdl b e subject to the same scrutiny process as f o l l o w e d for other reports issued by the O f f i c e o f Auditor General which includes tabling the reports in Parliament.

Supervision Plan

T h e overall ratinp for the proiect i s moderate a n d it i s envisaged that after t h e f i r s t year o f operation FM supervision m i s s i o n s would b e required at most on a n annual basis.

ANNEX 8: PROCUREMENT ARRANGEMENTS

KIRIBATI ADAPTATION PROJECT - IMPLEMENTATION PHASE(KAP 11) A) General P r oc ur e me n t for th e p ro p o s e d Project would b e carried out in accordance with the World Bank‘s “ G u i d e h e s : Procurement under IBRD Loans a n d IDA Credits” dated M a y 2004; a n d “Guidelines: Selection a n d E m p l o y m e n t of Consultants by World B a n k Borrowers” dated M a y 2004, a n d t he provisions stipulated in the G l o b a l E n v i r o n m e n t Facllity Trust Fund G r a n t Agreement a n d t he Australian G r a n t for Cofinancing IGr ib ati A daptati on P roj ect Phase 11. T h e general description of various items u n d e r different expenditure category i s described below. For each contract to b e financed by t h e Grant, the different procurement methods or consultant selection methods, estimated costs, prior r e v i e w requirements, a n d ti me frame are to b e agreed between the Recipient a n d the B a n k pr ojec t team in t h e Procurement Plan. T h e Procurement P l a n wdl b e updated at least annually or as required to reflect th e actual Project implementation needs a n d improvements in institutional capacity.

Procurement of Works (US$0.6 million)

International Competitive Bidding: ICB procedures shall b e used for procurement o f (a) works estimated to cost US$lOO,OOO or m o r e per contract. Works pl anned for procurement through

ICB include beach n o u ri s h m e n t at national hospital, clunate proofing causeway structure a n d climate proofing vulnerable infrastructure. T h e estimated cost o f w o r k e d goods to b e procured through t h i s m e t h o d i s less t h a n US$700,000.

(b) National Competitive Bidding (NCB): Works estimated to cost m o r e than US$50,000 but less t han US$lOO,OOO p e r contract m a y b e procured through NCB. T h e current legislation forms a sound basis for NCB a n d a d d t i o n a l criteria for acceptabhty o f NCB procedures are not considered necessary. (c)

Shopping (Small Works): T h e Project would finance a n u m b e r of small works for rainwater collection/storage facilities at c o m m u n i t y buildings a n d rainwater collection for groundwater recharge. These works are estimated to cost less t h a n U S $ 50,000 each. Procurement of such sm all works shall b e u n d e r lump-sum a n d /o r fi xed pri ce contracts awarded on the basis o f quotations obtained from at least three qualified domestic contractors in response to w r i t t e n invitations. T h e invitations for q u o ta ti o n shall include a detailed description o f the works i ncl udi ng basic specifications, t h e required c o mp l e ti o n date, a n d a form o f agreement acceptable to the Bank, a n d relevant drawings where applicable. T h e award shall b e made to the contractor offeri ng the l owest price quotation for th e work a n d who has experience a n d t h e resources to complete the contract successfully.

(d) Force Account: C o n s tru c ti o n by the use o f t h e Recipient’s own personnel a n d equipment will b e used for activities that are u d k e l y to attract any bidders, in particular those in the O u t e r Islands (mainly physical i mp ro v e m e n ts in the water supply system in selected locations u n d e r C o m p o n e n t 3: Freshwater resources). Refer to I t e m B b e l o w for further details.

11.

Procurement of Goods (US$ 0.G million)

International Competitive Bidding (ICB): ICB procedures shall b e used for procurement o f goods estimated to cost US$lOO,OOO or m o r e p e r contract. Goods pl anned for procurement through ICB i n c l u d e pipes a n d fittings for rehabilitation of B eti o distribution a n d household plumbing system a n d solar pumps, pipes for water supply improvements. T h e estimated cost o f goods to b e p r o c u r e d through t h i s m e t h o d i s less t h a n US$400,000.

(a)

(b) National Competitive Bidding (NCB): Goods estimated to cost m o r e than US$50,000 but less t h a n US$lOO,OOO p e r contract m a y b e procured through NCB a n d i ncl ude rainwater collection/storage facihties. T h e estimated cost of goods to b e procured through t h i s m e t h o d i s less t h a n US$lOO,OOO. T h e current legislation forms a sound basis for NCB a n d additional criteria for acceptabllity o f NCB procedures are not considered necessary. Shopping: Goods estimated to cost less than US$50,000 per contract m a y b e procur ed (c) through Shopping. T h e estimated cost o f goods to b e procured through t h i s m e t h o d i s less t han US$150,000. Direct Contracting: Procurement of standardized of equipment or spare parts, to b e (d) compatible with existing equipment, m a y justify a d l t i o n a l purchases from t h e ori gmal Supplier. T h e estimated cost o f goods to b e p ro c u re d through t h i s m e t h o d i s less than U S $ 80,000.

(e) Procurement from IAPSO: Computers a n d related equipment m a y b e p r o c u r e d through t he Inter-Agency Procurement Services o f the U n i t e d N a t i o n s (IAPSO). T h e estimated cost o f goods to b e p r o c u r e d through t h l s m e t h o d i s less t h a n US$lOO,OOO. 111.

Selection of Consultants (US$2.0 millions)

T h e consultantâ&#x20AC;&#x2122;s services would consist o f survey a n d water resources assessment, w h c h should b e conducted by consulting firms. D u e to the small national consulting industry, short l i s t s o f consultants composed entirely o f national consultants shall not b e applicable.

Selection Based o n Consultantsâ&#x20AC;&#x2122; Qualifications (CQS): Regardmg small assignments of (a) rout ine nature, such as survey a n d assessment o f simple nature, qualified consultant firms shall b e selected through CQS method. T h e estimated value o f consultants selected through CQS m e t h o d would not exceed US$ 0.25 d o n .

(b) Individual Consultants: A p p roxi matel y fifty i ndi vi dual consultants would b e p r o c u r e d under t he Project. T h e y should b e selected through a comparison o f qualifications o f a t least three qualified consultants a m o n g those who have expressed interest in the assignments or have b e e n approached directly. T h e to ta l estimated cost o f t h e i n d i v i d u a l consultants to b e selected through a competitive process i s U S $ 1.8 d o n s . In addition, with appropriate justifications a n d after concurrence by the Bank, i n d w i d u a l consultants m a y b e selected on a sole-source basis in exceptional tasks that are a c o n ti n u ati on o f previous work that the consultants have carried out cases, such as (i) a n d for w h i c h the consultants were selected competitively, (ii) assignments lasting less t h a n s i x months; a n d (c) w h e n th e i n d i v i d u a l i s the only consultant qualified for the assignment. Based on t he pr opos ed Procurement Plan, selection o f consultant to produce climate / weather / sea level risk 64

i n f o r m a t i o n a n d selection of consultant who will provide training at the Meteorological O f f i c e may b e done on a sole-source basis.

IV.

Small-Scale Adaptation Grants (US$0.4 million)

T h e project will finance a number o f activities under the Capacity at Island a n d Community L e v e l C o m p o n e n t a n d i t will b e carried out with the active participation o f local communities. A Procedures M a n u a l (Pilot O u t e r Islands Investments Scheme Procedures Manual) for &us component, with rules for eligibility a n d the procedures for selection a n d disbursement of the grants, including appropriate fiduciary a n d safeguard measures have been developed. T h e remoteness o f the pilot islands i s a m a j o r issue from a n implementation perspective a n d due to these characteristics, special arrangements were considered. T h e selection criteria a n d the process for allocation, sample agreements, procurement a n d disbursement of the grants shall b e in accordance with the Procedures M a n u a l a n d the following procedures:

(a)

Community Participation

Goods: Most goods consist o f rehabilitation materials a n d other related consumables. Direct contracting: Because o f the small size of the individual purchases and since a comparison o f prices m a y not b e practical due to quality a n d distance considerations, procurement o f materials costing US$2,500 or less per contract m a y b e through b e c t contracting from local markets or suppliers. e

Shopping: E x c e p t as p r o v i d e d above, for goods that are estimated to cost US$15,000 or less p e r contract, a comparison of three quotations shall b e required. There wdl e

not b e contracts above US$15,000.

ii.

Works: Most grants i n v o l v e only minor rehabllitation w o r k s necessary for small repairs a n d

adjustments or water a n d sanitation arrangements.

Direct contracting: Because o f the small size of the individual contracts a n d since a comparison o f prices m a y not b e practical, procurement o f works costing US$2,500 or less e

per contract m a y b e through direct labor.

Procurement of Small Works: E x c e p t as p r o v i d e d above, for works estimated to cost US$ 20,000 or less p e r contract, a comparison o f quotations shall b e required. Procurement o f such small works shall b e under lump-sum, fmed price contracts awarded on the basis o f quotations obtained from at least three qualified domestic contractors in response to w r i t t e n invitations. T h e invitations for quotation shall include a detailed description o f the works i n c l u d m g basic specifications, the required c o m p l e t i o n date, a n d a form o f agreement acceptable to the Bank, a n d relevant drawings where applicable. T h e award shall b e made to the contractor offering the lowest price quotation for the work a n d who has experience a n d the resources to complete the contract successfully. I f three qualified contractors are not available within the c o m m u n i t y area, the contract m a y b e awarded on basis o f two quotations or awarded b e c t l y to a sole qualified contractor. There will not be contracts above US$20,000. e

Individual Consultants: Services to b e p r o v i d e d by l ocal consultants will i nvol ve training a n d workshops a n d will follow the individual selection procedures on the basis of comparison of

iii.

qualifications.

Sole Source: Because o f the small size o f the i ndi vi dual contracts and since a c om p a ri s o n o f three qualified candidates m a y not b e practical, then selection o f individual consultants costing US$2,500 p e r contract or less m a y b e through Sole Source. e

a Comparison of three qualified candidates: E x c e p t as p r o v i d e d above, for indm i d u a l contracts that are estimated to US$lO,OOO or less p e r contract a comparison o f three qualified candidates shall b e required. There will not b e contracts above US$lO,OOO

Operational Costs (US$ 0.4 million) Ths i t e m would i ncl ude communications, utilities, stationary, transportation, accommodation a n d allowances. T h e procurement of such items would follow i m p l e m e n t i n g agency’s administrative procedures.

Assessment of the agency’s capacity to implement procurement

P r o c u re me n t activities wdl b e carried out by the Project Management Unit, w h i c h wdl b e under t he supervision of th e O f f i c e of the President/ O f f i c e o f T e Beretitenti (OB). An assessment of t he capacity o f the Imp l e m e n ti n g Agency to i m p l e m e n t procurement actions for the project has been carried out by Cristiano N u n e s (EAPCO) in July, 2005 a n d updated by B i sma H u s e n (EAPCO) in Dec em be r 2005. T h e assessment reviewed the organizational structure for i mpl ementi ng t h e pr ojec t a n d t h e interaction between the project’s staff responsible for procurement a n d o ther G o v e r n m e n t Agencies. Based on t h e assessment, the procurement r i s k s are considered to b e “High”. This i s mainly due to t he weak p ro c u re m e n t capacity. In order to mitigate the risks, t h e following actions wer e recommended: 0

At least o n e s ta ff should b e designated as t h e P rocurement Assistant. Provisions should b e m a d e for h s / h e r training in international procurement.

Procurement Specialist, with qualifications acceptable to the Bank, should b e recruited to p r o v i d e support to the Project, for a t i m e commensurable with the proj ect procure ment load. H e /s h e would also b e responsible for assisting the D e p u t y Secretary a n d m e n t o r i n g t h e Procurement Assistant, organizing r e c o r d keeping, preparing procurement documents, h e l p i n g in evaluation o f bids/proposals, a n d contract supervision a n d management

T h e Operations M a n u a l should include a P rocurement Section, providmg step-by-step process for managing procurement. I t should also include the Procedures M a n u a l for t h e Pilot Is l a n d A d a p t a t i o n Component, where c o m m u n i t y based procurement i s envisaged.

With regards to th e u t h z a t i o n o f Force Account, the M i n i s t r y o f P ubl i c Works a n d U u lit ies (MPWU) would b e responsible for carrying out physical i mprovements in t h e water supply system in selected locations u n d e r c o m p o n e n t 3. MPWU has h a d previous experiences with Force A c c o u n t a n d the Task T e a m found i t to have th e overall capacity to i m p l e m e n t such activities. Nevertheless, r i s k s were identified a n d mi ti g a ti o n actions were i ncl uded u n d e r t h e Project’s design. Technical assistance for construction supervision has b e e n included. Also, t h e use o f F o r c e A c c o u n t would have to b e managed through D e p a rtme n ta l Warrants (DW) issued by t h e OB, so that producti vi ty controls are in

place. T h e PMU would monitor MPWU’s performance and ensure that warrants are properly acquitted. T h e MPWU would also manage any necessary storage o f construction materials and, as a result, it has b e e n established that MPWU would provi de detailed reports accounting for the use of these materials to th e OB (a stock c o n t r o l system i s already in place w h i c h i s capable of accounting for materials a t a job level).

Procurement Plan

T h e Recipient, at appraisal, developed a Procurement P l an for Project i mpl ementati on w h i c h provides t he basis for th e procurement methods. This p l a n has been agreed between the Recipient a n d t he P r oje c t T e a m o n December 23,2005 a n d i s available at the O f f i c e o f the President/ O f f i c e of T e Beretitenti (OB). I t will also b e available in the Project’s database a n d in t h e Bank‘s external website. T h e Procurement Pl a n will b e updated in agreement with the Project T e a m annually or as r equir ed to reflect the actual Project i mpl ementati on needs a n d i mprovements in institutional capacity.

Frequency of Procurement Supervision

In a d b t i o n to the prior review supervision to b e carried out from B a n k offices, the capacity assessment o f t h e Im p l e me n ti n g Agency has recommended a yearly supervision m i s s i o n to visit the f ield to carry out post review o f procurement actions.

Prior Review Thresholds

(a) Prior review by th e B a n k of Goods a n d Civil Works will include: (a) a l l International Com pet it iv e Bidding; @) f i r s t two contracts i mpl emented through Force Account; a n d (c) f i r s t two contracts awarded on the basis of NCB. T h e remai ni ng procurement will b e subject to post review.

(b) Prior re v i e w by th e B a n k o f consultant services wdl involve: (a) prior revi ew o f al l Terms of Reference regardless o f th e estimated value; (b) contracts greater than US$lOO,OOO equivalent for consultant services p r o v i d e d by firms, (c) selected contracts for i n l v i d u a l consultants (on a n exceptional basis a n d based on a specific request from the TTL. To b e indicated in t h e procurem ent plan); a n d (d) a l l Single Source Selection a n d Sole Source, regardless o f value. O t h e r procuremen t of consultant services will b e subject to post review. (c)

All the prior review contracts will b e stated in the Procurement P l a n

Attachment 1 Details of the Procurement Arrangement involving international competition

Goods and Works.

(a) Goods a n d Works contracts estimated to cost above U S $ 100,000 per contract and al l D i r e c t Cont ra c ti n g WIU b e subject to prior review by the Bank. @) L i s t o f contract Packages (no PQ and D omesti c Preference applied):

Goods

RefN o .

Vorks

Ref N o .

WK1

wK2

wK3

Description

Cost

Procurement Method

Bank's Review

Completion Date

3.3.2

ICB

Prior Review

29-Jan-07

Component

Procurement Method

Donor Review

2.2.2

ICB

Component

(US$

equiv.)

Notes

goods: pipes and fittings for

rehabilitation o f Betio distribution and household plumbing system - Component 3.2.5 solar pumps, pipes, etc. for 01water supply upgrades _ _ Component 3.3.2

Description

190,000

cost

(US$)

beach nourishment at national hospital (indicative) Component 2.2.2 climate proofing causeway structure (indicative) Component 2.2.2 climate proofing vulnerable infrastructure (indicative)

Component 2.2.2

190,000

3.2.5

228,000

199,120

2.2.2

1 s:wI 1 s:w1

11-May-07

ICB

Opening / Bid receipt

11-May-07

Notes

I 1 I 1 I

Consulting Services. (a) L i s t o f Consulting Assignments with short-list o f international fums. Ref No.

FS1

FS2

FS3

FS4

Description

9ppm n T A 4 to supervise surveys (3+3+3) + 30ppm n T A 2 t o carry out surveys (3surveys*2month*5p ersons) - - Component 1.2.4 6ppm to supervise surveying (2+2+2) + 30ppm n T A 2 t o carry out survey (3surveys*2month*5p ersons) - Component 3.2.2 4ppm water int'l resource assessment crew (2 persons) + 4ppm local crew for water resource assessments (incl. per diems) - Component 3.2.3 2ppm water resources assessments on 01 (possibly same as firm as 3.2.3) + 12ppm local support for 01 water resources assessments ComDonent 3.3.1

cost (US$)

Component

Procurement Method

Donor Review

54,720

1.2.4

CQS

Prior Review

47,880

3.2.2

CQS

Review

77,520

3.2.3

56,240

3.3.1

Prior

Review

Prior Review

Sign

Contract

Notes

1-Nov-06

1-NOV-06

1-Oct-06

Consultancy services estimated to cost above US$50,000 p e r contract a n d Single Source selection o f consultants (firms) for assignments regardless o f t h e a m o u n t i n v o l v e d wdl b e Subject to prior review by the Bank. Short l i s t s composed entirely o f national consultants: N o n e (c)

ANNEX 9: SAFEGUARD

KR IB I ATI

POLICY ISSUES

ADAPTATION PROJECT- IMPLEMENTATION PHASE(KAP 11)

Introduction:

This annex reviews the social a n d environmental safeguards issues germane to t h e I G r i b a t i A dapta tion Project 11, a n d notes steps taken during project preparation a n d to b e taken during project im plem ent at i o n to carry out th e fiduciary responsibilities with respect to safeguards policies.

T her e are two safeguards policies triggered under the project. These are OD Assessment, a n d OP 4.12: Resettlement. This annex will deal with each in turn.

4.01: E nvi ronment al

A. Resettlement Following t he N a t i o n a l Consultations, th e CCST identified 10 priority areas for I G r i b a t i with respect to adapting to c h a t e change: awareness, water resources, inundation/coastal erosion, health impacts, agriculture, family planning, fisheries, waste management, overcrowdmg, a n d miscellaneous other

options. I mp l e me n ta ti o n of subprojects in these areas in the pilot islands m a y require some small a m o u n t of l a n d acquisition a n d possible small-scale resettlement of affected people. Therefore a Resettlement P o l i c y F ra me w o rk has b e e n developed that identifies the principles to b e fol l ow ed in the event o f l a n d acquisition, resettlement, a n d compensation based on I h i b a t i ' s legislation, a n d the Bank's polic y on involuntary resettlement.

T h e purpose o f the Resettlement Po l i cy Framew ork i s to provi de guidance for the process a n d int ended outcomes of resettlement plans a n d activities to b e applied to subprojects during subproject implementation. T h e overall principle o f the Resettlement Policy F r a m e w o r k i s to ensure that those people whose livelihoods or assets are directly affected by the proj ect realize benefits as a result of pr ojec t im plem e n ta ti o n a n d that a l l steps are taken to m i n i m i z e negative impacts on them.

Institutional Arrangements T h e MELAD p i n i s t r y o f En v i ro n me nt, Lands a n d Agricultural D evel opment) i s the lead agency responsible for co-coordinating p l a n n i n g a n d i mpl ementati on of lands acquisition a n d resettlement. T h e Ministry formulates a n d manages th e resettlement budget a n d pays compensati on to t h e affected people after th e L a n d s Management Division (LMD) has carried out a survey of t h e assets a n d trees on t he site. T h e LMD i s also responsible for surveying the house sites. T h e MELAD provides t he secretariat for th e Resettlement Committee. T h e Resettlement C o m m i tte e was established by t h e GoK to deal with the resettlement o f Tabuaeran, Teraina a n d I G r i t i m a t i islands. T h e C ommi ttee i s responsible for devel opi ng guidelines, eligibility criteria, plans, strategies a n d priorities for the GoK resettlement schemes. T h e C o m m i t t e e i s therefore i n v o l v e d in th e p l a n n i n g a n d i mp l e m entati on o f resettlement schemes. T h e C o m m i t t e e makes recommendations to the Cabinet for consideration a n d approval. T h e C o m m i t t e e i s a high-level body consisting of the m a i n GoI< stakeholders under t h e chairmanship o f the NIinister o f E n v i r o n m e n t Lands a n d Agricultural D e v e l o p m e n t. T h e members include the M i n i s t e r a n d Secretary o f t h e M u u s t r y for L i n e a n d Ph o e n i x D e v e l o p m e n t (ML,PD), Secretary MELAD, Secretary M i n i s t r y of I n t e r n a l a n d Social Affairs, D i r e c t o r of L a n d s Management, D i r e c t o r of E n v i r o n m e n t a n d Conservation Division, D i r e c t o r of W s t r y o f Education, Youth a n d Sport, a n E c o n o m i s t from t h e M i n i s t r y of Finance a n d E c o n o m i c Development, C h e f H e a l t h Inspector, C h i e f C ounci l or (Betio Town Council), a n d th e C h i e f C o u n c i l o r (TUC).

T h e existing Resettlement Committee has the experience a n d the capabhty to deal with general resettlement issues, a n d it can also adequately handle any proposed lands acquisition and resettlement for the I U P . T h e resettlement p l a n for the Resettlement Committee i s drawn as a joint effort by the principal GoK stakeholders, includmg the Lands Management Division a n d the Environmental a n d Conservation Division o f the MELAD. T h e MELAD has the expertise to draw up resettlement plans in line with the Bank's RAP procedures, a n d i t i s recommended that the MELAD, in conjunction with t h e other GoI< key stakeholders, and the respective I s l a n d Councils a n d communities, i s given responsibility in drawing up either the RAPS or the settlement plans for each island community. T h e participation o f island community representatives i s crucial both in the planning a n d implementation stages of these resettlement plans, as n o t e d further below.

T h e Resettlement Process Targeting a n d provision of i n f o r m a t i o n are critical to attaining t h e overall goals o f the Project with particular reference to the project clientele. T h e objective i s to disseminate i n f o r m a t i o n about the project to the potential affected population. On those islands where i t i s planned that subprojects will b e implemented, a n initial meeting should b e h e l d before any subprojects are prepared in w h i c h Island residents meet together at the Island C o u n c i l maneaba. T h e purpose of t h i s meeting will b e to: 0

Provide a n overall explanation o f the project a n d i t s objectives;

Discuss t h e possible impacts with respect to l a n d acquisition a n d resettlement;

E x p l a i n that a l l l a n d will b e acquired voluntarily, t h e general nature o f compensation a n d resettlement assistance to b e provided, a n d the mechanisms for filing a n d assessing grievances for activities under the project;

E x p l a i n the general process for preparing a n d submitting proposals for subprojects. T h e details o f t h l s process are d m u s s e d in the Procedures M a n u a l for the pilot small-scale adaptation investments.

Subproject Preparation and Screening

On each island the I s l a n d Project O f f i c e r will b e the key official who wdl work with villages a n d groups within villages to prepare subproject proposals under t h e project. O n c e villages decide on a

subproject proposal a n d the proposal i s prepared in a form that can b e submitted for evaluation, the proposal will b e passed on to the Island Development Committee. T h e process o f evaluation by the I D C i s discussed in detail in the Procedures M a n u a l for the pilot small-scale O u t e r Island adaptation investments. As a p a r t o f h s process, for each subproject identified for possible fundmg u n d e r I U P - I 1 a screening process should b e carried out to identify the i m p a c t o f t h e subproject with respect to l a n d acquisition, resettlement, livelihood interruption or other impacts on livelihood and/or assets that will trigger the resettlement policy framework. I t i s expected that in most cases the impacts on the affected people wdl b e minor - that is, either no people are displaced a n d less t h a n 10% of their productive assets are affected, or fewer than 200 people are displaced. In such cases a n Abbreviated Resettlement A c t i o n P l a n wdl b e prepared. I t i s expected that most subprojects under I U P - I 1will require Abbreviated Resettlement A c t i o n Plans. W h e r e t h i s i s not t h e case, a full Resettlement A c t i o n Plan must b e agreed a n d implemented.

Consultations Consultations with the l o c a l residents will b e a n ongoing feature of the process o f subproject formulation, submission, approval, implementation a n d monitoring, a n d will include consistent attention to resettlement, l a n d acquisition a n d related issues. Consultations with potential affected people will b e a n i m p o r t a n t p a r t o f t h i s process.

Such

consultations will b e g m with the i n f o r m a t i o n and awareness meetings that take place b e f o r e any subproject proposals are prepared, a n d continue through the l i f e o f the project. T h e people must b e i n f o r m e d ab o u t their options a n d rights pertaining to resettlement, consulted on, offered choices among, a n d p r o v i d e d with technically a n d economically feasible resettlement alternatives, and p r o v i d e d prompt compensation at full replacement for l o s s o f assets because o f the proj ect (OP 4.12 para.6a). A consultation framework will b e developed for each subproject that will o u h e exactly how t he process of discussion a n d negotiation will take place.

Survey

As a p a r t o f the preparation of subproject proposals, a survey will b e conducted to identify t h e likely i m p a c t o f t h e subproject with respect to l a n d acquisition a n d resettlement. T h i s survey wdl b e carried out under t h e d u e c ti o n of th e IPO on each island for each subproject. T h e results of t h i s survey will b e inc luded in th e subproject proposal submission p r o v i d e d to t h e I s l a n d D e v e l o p m e n t Council. T h e pr opos al submission will n e e d to include the following i nformati on:

1. For any voluntary contributions o f indi vi dual l a n d without compensation, a consent form w h i c h

includes t h e n a me o f th e l a n d donor/s, a n d details o f the contri buti on (type, size, location, specified p e r i o d of use etc. as appropriate). This should b e signed (or thumb-printed) by the l a n d donor/s (includmg t h e male a n d female heads of t h e househol d involved), a n d t h e chalrperson of t he C o u n c i l o f Unimane.

2. For l a n d contributions against compensation, a consent form w h i c h includes the name o f t h e l a n d donorls, details of th e c o n tri b u ti on (type, size, location, specified p e r i o d o f use etc. as appropriate), a n d details o f th e agreed compensation arrangements. This should b e signed by the l a n d donor/s (including the male a n d female househol d heads), a nomi nated representative o f the group m a k i n g th e subproject proposal, a n d the chairperson o f the counci l o f elders (the unimane).

3. W her e t h e l a n d donated i s c o m m u n a l land, these forms can b e signed on behal f of t h e vdlage by a recognized village leader.

For sub-projects where l a n d i s donated or p r o v i d e d against compensation, the Isl and D e v e l o p m e n t C o u n c i l will take th e following steps during i t s appraisal of proposed sub-projects:

i> v er if y with th e l a n d donor/s that the d o n a t i o n i s i ndeed made on a voluntary basis, that t he donor/s is/are th e legitimate owner/user o f such lands, a n d that the l a n d donor/s is/are fully i n f o r m e d o f t h e nature o f th e sub-project a n d the implications o f donating the property;

ii) assess that t h e l a n d donor does not suffer a substantial l o s s affecting his/her econom ic

viability as a result o f the arrangement. W h e r e there i s substantial l o s s the sub-project cannot b e a p p ro v e d as p ro p o s e d (the a m o u n t donated should usually not exceed 10% o f hi s/her l a n d or assets without appropriate Compensation);

iii)

assess that th e compensation arrangements are appropriate. T h e compensation should b e roughly equivalent to t r a d t i o n a l compensation arrangements. W here demands are excessive, compensation inappropriate a n d/o r the l a n d donor a n d t h e c o m m u n i t y cannot agree, t h e IPO a n d / o r Community Facilitators will encourage alternative sites or arrangements. T h e subpr oje c t will not b e approved forfunding by a Small G r a n t untd suitable alternative sites are

ident i fi e d a n d l a n d has been voluntarily made available through the process described above. If no suitable l a n d i s made available through the V ol untary L a n d Contribution process, the sub-project would not b e further processed.

Disclosure o f the RAP to the Affected People

public m e e ti n g will b e h e l d in each affected village to inform the affected people about the resettlement a n d compensation issues. O n c e a Resettlement A c t i o n P l a n i s completed, a public m eet ing wdl b e h e l d to dlsclose the exact contents of the RAP to the affected people.

Sign Compensation Contract and Pay Compensation T h e f inal step o f resettlement i m p l e me ntati on i s agreement o f al l parties to t h e compensation and Alternative forms of related arrangements, a n d payment o f compensation, if necessary. compensation, such as allocation o f l a n d a n d employment opportunities, will also b e explored.

Source of Funding T h e pr ojec t will b e responsible for funding al l resettlement a n d l a n d acquisition related expenses. Funding arrangements are discussed in m o r e detail in section 4.

Grievance Redress Mechanism T h e mechanisms for redressing grievances will also b e presented a n d explained to the affected p o p u l a t i o n in a p u b l i c meeting. A f f e c t e d people will b e given opportunities to review the survey results a n d compensation policies during the resettlement pl anni ng a n d implementation. T h e f i r s t step in any grievance procedure will b e negotiation at the vlllage level between the affected persons a n d island representatives, particularly with the IPO and, through the IPO, with the Isl and Council. I f t h l s does not lead to a satisfactory arrangement, the grievance will b e forw arded to the Project Management O f f i c e for adjudication. I f t h i s does not result in agreement t h e affected people shall have t he right to pursue th e grievance through t h e c o u r t system.

Monitoring I t i s t he responsibility of th e GoK to make a n assessment to determine t h a t t h e objectives of the

resettlement instrument has b e e n achieved. T h e B a n k requires that both a n i nternal a n d external monitoring of the projectâ&#x20AC;&#x2122;s progress b e undertaken. T h e details o f the monitoring processes are discussed in Section 12.

This section has covered the basic approaches to b e taken in the event o f resettlement and/or l a n d acquisition u n d e r the project. For a m o r e complete discussion o f these issues please refer to the Resettlement Policy F ra me w o rk in p ro j e ct files.

B. Environment Introduction

A Strategic E n v i ro n m e n ta l Assessment was done as p a r t o f the preparation of IUP-11. T h e SEA was examined t h e environmental issues th at are likely to arise under the K i r i b a t i A d a p t a t i o n P r o g r a m Phase 11, a n d particularly u n d e r C o m p o n e n t 1, Priority N a t i o n a l A d a p t a t i o n Investment, and C o m p o n e n t 2, Pilot Is l a n d Adaptation, a n d makes recommendations concerni ng how best to undertake environmental assessment o f these activities to mitigate any possible negative consequences. As the specific activities to b e undertaken under I U P - I 1 have yet to b e designed, the strategc assessment provides a general methodol ogy for environmental screening o f policies a n d plans, t he preparation of environmental i m p a c t assessments for various kmds o f potenti al activities a n d t he monitoring of th e i m p l e me n ta ti o n o f t h e recommendations o f those EMS.

T h e CCA Strategy: Rationale and Aims T h e key policy d o c u m e n t covering adaptation to climate change in I G r i b a t i i s the Climate Change Adaptation Strategy. T h e CCA Strategy a i m s to strengthen IGribati’s a b h t y to handle c h a t e change by action under eight b r o a d headmgs: integration o f CCA into national planning; external financial a n d technical assistance; population and resettlement; governance a n d services; freshwater resources and supply systems; coastal zones and structures; marine resources; a n d survivability and self-reliance

As p a r t o f the preparation process for I U P - I 1 a n u m b e r of “soft” community options and interventions have been identified as likely areas for possible subprojects:

Planting schemes for coastal erosion control, including, e.g., mangrove replanting or expansion, coastal l a n d reforestation, planting of ironwood plants (“te nikabubuti”, “te aroua”, etc.) and other steps to stabilize coastal a n d foreshore areas. Marine p r o t e c t i o n strategies such as coral replanting a n d protection schemes and establishment o f marine conservation areas W i d e n i n g o f channels for wetlands flushing. Water a n d sanitation improvements, such as relocation or protection o f communal drinking sources, water tank construction a n d guttering, water pumps a n d pipes for distribution, etc. Materials would b e p r o v i d e d by the grant funding, w h i l e labour a n d other inputs would b e p r o v i d e d by t h e c o m m u n i t y or relevant groups. Replanting o f food plants a n d trees or i n t r o d u c t i o n o f additional kinds o f agricultural products a n d practices, restoration o f inundated large community or extended f a d e s babai pits. Planting suitable trees around houses

Community or village waste management system Control o f vector-borne hsease. O t h e r projects not m e n t i o n e d but w h i c h fall within GEF focal area o f conserving biodmersity, reducing adverse climate change, a n d protecting international waters.

Environmental Management I t i s clear that m a n y o f these options wlll have environmental impacts, though in most cases these impacts are not likely to b e substantial, a n d in many, if not most, t h e longer t e r m consequences will b e positive. There i s a n established regulatory environment in I G r i b a t i that mandates certain actions in the case o f negative environmental impacts. T h e E n v i r o n m e n t A c t 1999 provides for a n d establishes a n integrated system o f development control, environmental i m p a c t assessment a n d pollution c o n t r o l for IQribati. T h e Minister o f Environment, Lands a n d Agricultural D e v e l o p m e n t i s responsible for the due administration a n d implementation o f the A c t . All development proposals o f government ministries, island councils, private developers a n d non-government organizations must undergo the environmental screening procedures of the E n v i r o n m e n t a n d Conservation Division (ECD) as stipulated in the E n v i r o n m e n t Regulations 2001. T h e screening procedure requires all project proponents to apply for a p e r m i t to carry out a prescribed development. T h e application form will b e reviewed by E C D to determine whether the particular proposal requires further environmental study in the form o f a n initial environmental examination (IEE) or a n E I S (a comprehensive environmental i m p a c t assessment PIA] study) report. T h e EIA procedure allows for the project p r o p o n e n t to conduct i t s own ELA study a n d i m p l e m e n t the ECD approved environmental management p l a n o f project activities. T h e ECD would also p r o v i d e monitoring measures for t h e p r o p o n e n t to i m p l e m e n t

a n d for w h i c h N a t i o n a l E n v i r o n m e n t Inspectors would closely monitor environmental compliance of the project.

A CCA project activity in a n Outer Island would undergo the same environmental screening system where the initial application and subsequent regulatory activities are handled through the E n v i r o n m e n t a n d Conservation Division. Implementation, management a n d monitoring o f the local project would b e supervised by the Island C o u n c i l involved, with possible assistance from ECD. T h e central EIA unit o f the ECD can best take on the r o l e o f referee a n d watchdog responsible for i s s u i n g regulatory a n d technical guidelines, resolving interagency conflicts, dsseminating information, a n d the like. U n d e r the guidance of the central EIA agency, however, primary responsibility for infusing environmental values into project-identification a n d development activities should remain with l i n e ministries, sectoral agencies, Island Councils a n d private businesses.

All subprojects u n d e r the Pilot Island Adaptation c o m p o n e n t a n d any m a j o r activity u n d e r t h e MOPS

will undergo environmental screening to determine t h e hkely level o f environmental impact. Activities will b e categorized in a way consistent with B a n k OD4.01. A proposed project with likely significant adverse environmental impacts that are sensitive, &verse or unprecedented will require preparation of a full EIA with a n Environmental Management Plan, consistent with t h e requirements for a Category A project under OD4.01. A proposed p r o j e c t with impacts t h a t are site-specific; few i f any o f w h i c h are irreversible; and where mitigation measures can b e designed m o r e readily t h a n for Category A projects will b e treated consistent with Category B projects u n d e r OD4.01. A project with f e w or m i n i m a l environmental impacts will b e treated in a manner consistent with Category C projects, a n d wdl generally entail only initial environmental screening.

Key Institutional Players in Environmental Assessment and Monitoring Planning a n d implementing CCA Strategies involves m a n y ministries a n d agencies with different technical specializations. Recent institutional changes a n d developments have helped to streamline a n d coordinate activities a m o n g those ministries a n d agencies. Central policy coordination will b e p r o v i d e d by the O f f i c e of T e Beretitenti (OB) through t h e recently established &vision o f Strategic Rsk Management. A technical working group designated the Climate Change Study T e a m (CCST) i s currently based in t h e Ministry of Environment, Lands a n d Agricultural D e v e l o p m e n t (MELAD) a n d chaired by a senior MELAD official. This group i s made up o f national climate change specialists a n d officials from the most concerned ministries. CCST monitors climate change nationally a n d globally a n d assesses the vulnerabhty o f islands a n d investments or activities to clunate-related risks. CCST reports to the N a t i o n a l Adaptation Steering Committee (NASC), w h c h i s chaired by t h e Secretary to the Office o f T e Beretitenti (OB) a n d includes senior officials from concerned ministries a n d representatives of churches, the national women's organization a n d non-government organizations. NASC reports to a n d advises OB, a n d through OB it advises Cabinet on CCA matters. Cabinet decisions are advised to NASC a n d implemented by responsible ministries. Responsibility for operational planning a n d t h e carrying out o f activities to i m p l e m e n t CCA strategy wdl lie with the relevant technical ministries a n d p u b l i c enterprises, but a l l such activities must undergo environmental scrutiny as stipulated in t h e national environmental screening procedures. These implementing agencies are Ministry o f Public Works a n d Utilities (MPWU) (water, infrastructure a n d p u b l i c buildings), the W s t r y o f Environment, L a n d s a n d Agriculture D e v e l o p m e n t PELAD) (external liaison on climate change, environmental management a n d regulation, agricultural extension), a n d MISA (support to L o c a l G o v e r n m e n t in u r b a n areas a n d O u t e r Islands), Ministry of Communications, Transport a n d Tourism D e v e l o p m e n t (MC'M'D) (telecommunications, weather a n d climate monitoring a n d weather forecasting). Each ministry's operational commitments will b e found in the relevant programs in i t s M i n i s t r y Operational P l a n

(MOP), w h d e the appropriation of local funds and allocation of external a i d to these purposes wdl be found in the A n n u a l GoK Budget.

At practical level coordmating committees will b e established as required by the appropriate ministries. T h e Foreshore Management Committee of MELAD, with inter-ministry membershlp, i s expected to assist MELAD to discharge i t s environmental regulatory a n d p e r m i t t i n g functions relating to seawalls a n d foreshore structures. Generally, the regulatory functions o f MELAD and other agencies concerned with l a n d use a n d structure design appear to b e frequently bypassed by G o v e r n m e n t developers. This strategy wdl requite the overhaul o f arrangements for co-operation a m o n g regulatory agencies a n d G o v e r n m e n t ministries to close loopholes through w h i c h unexamined developments can slip, a n d to a v o i d unnecessary processing delays or variations in standards. Improving the capacity and effectiveness o f local government i s crucial to implementing t h i s CCA strategy. M a n y of the services that most directly affect people’s ability to handle climate variability and change fall naturally to b e delivered at local government level, both in u r b a n areas (South Tarawa) and the O u t e r Islands. Building standards a n d densities, waste dlsposal, l a n d p l a n n i n g a n d permitting, l a n d

reclamation a n d community coastal defenses are all within the r e m i t of l o c a l government. IGritimati, where national government has until now been responsible for everything, i s now moving towards provision of services by local government.

G o v e r n m e n t o f I G r i b a t i i s taking steps (not for the f i r s t time, but with a n increased sense o f urgency) to strengthen capacity at local level a n d to equip local governments with m o r e a n d better i n f o r m a t i o n on CCA and related issues. T h e CCA project under design for s u b m i s s i o n to GEF includes a small grants scheme to assist island-level CCA-driven investments, a n d the possibility o f a i d to construct c o m m u n i t y storm refuges in certain islands i s discussed in the strategy statement.

Public Consultations Two IGxibati Adaptation P r o g r a m documents p r o v i d e extensive coverage o f t h e N a t i o n a l Adaptation Consultation, a crucial element o f the process o f agreeing on national adaptation priorities a n d benchmarks a n d the mainstreaming of adaptation into economic planning. T h e r e were two national consultation workshops conducted in South Tarawa but with participation from a l l O u t e r Island representatives, including 28 c o m m u n i t y consultations in 4 islands, a n d o n e consultation on IGxitimati covering the L i n e a n d Phoenix Islands. T h e documents ‘Report on t h e Second N a t i o n a l Consultation h e l d at Otintaai Hotel, Bikenibeu, from 3rd to 6th N o v e m b e r 2003’ a n d ‘Social Assessment F i n a l Report’ document the inputs a n d opportunities for vulnerability reduction by t h e various stakeholders themselves that do reflect the real national priorities w h i c h will have local support once t h e priorities that are identified need to b e implemented.

A process of continuing consultation implies a c o m m i t m e n t by the authorities to listen to the insights a n d concerns of people a n d communities a n d to make a credible a n d relevant response. T h e f i r s t national CCA consultations in 2003, conducted as a joint NAPA-I(AP exercise, were necessarily broad-based. With the backing o f t h l s strategy statement, future consultations can focus on a f e w priority concerns, a n d can a i m at identifying activities a n d investments a n d allocating responsibility for taking action. Funds for the c o n t i n u i n g consultative process wdl b e p r o v i d e d in t h e GoI< A n n u a l Budget, using both local a n d external funding. Agreed action by GoK on concerns identified in t h l s way dappear in the appropriate MOPS.

Project Assessment

A simple impact matrix was formulated

to review the b r o a d environmental implications o f the various project proposals. T h e m a t r i x i s shown in A p p e n d i x B o f the SEA a n d helps to compare the b r o a d environmental implications across t h e various projects a n d provides guidance in i d e n t i f y i n g possible

cumulative impacts, a n d interactions between projects that might create enhanced impacts or other problems, such as hazards. I t can also b e used to examine the distributional aspect o f impacts, that is, who i s winning a n d who i s losing from the overall set o f projects. T h e assessment explicitly differentiates between the construction phase o f the projects a n d their subsequent operational phase. I t i s clear that many, i f not a l l the proposed projects are hkely t o have adverse effects a t t h e construction stage. These are mai nl y impacts such as noise, dsruption o f dady social a n d ec o n o m i c activities a n d the exposure of soil to rai nfal l a n d coastal erosion processes during t he construction period.

Most o f t he adverse effects fall on the l ocal people a n d t h e mari ne environment, w h i c h i s entirely as expected; giv e n t h e CCA projects will take place in coastal areas. There are some indirect effects in the

r u r a l a n d u r b a n sectors ma i n l y due to the sand mining a n d dredging operations w h i c h pro vide aggregate for r o a d a n d other infrastructure construction. T h e environmental reserve, by preserving a m a j o r area o f comparatively u n mo d rfi e d coastal area (e.g. North Tarawa Conservation Area), i s t he only pr ojec t t h a t would i m p i n g e directly on terrestrial a n d mari ne natural ecosystem components (soil, fauna a n d flora). I t can also b e considered to have long t e r m benefits for the mari ne envi ronm ent since it i s a p e rma n e n t reserve set aside to compensate for the l o s s o f l agoon r e e f ecosystems due to t he growing n u m b e r o f l a g o o n re e f dsturbances

In terms o f cumulative impacts, the most obvious one i s the c o m b i n e d effects of t h e construction phases of al l or several projects i f they were to b e undertaken concurrently. B e i n g in a comparatively

small geographical area th e construction impacts c o u l d b e severe in any particular island. At Tarawa t he disruption to traffic a n d pedestrian access, noise, dust, a n d the danger o f a substantial increase in t he v o l u m e of sediment drift within Tarawa L a g o o n are a m a j o r consideration. Although the timetable for im plem e n ti n g projects i s largely determined by the availability o f funds, some thought c o u l d b e giv en to t he possibhty of co-coordinating the construction phases o f certain projects to m i n i m i z e t he potential for social a n d economic disruption a n d sedimentation transport. These cumulative impacts are likely to b e m u c h less severe in the O u t e r Islands w here p o p u l a t i o n density i s considerably less a n d t he num ber o f activities dhkely b e less as well. T h e m ar ine e n v i ro n m e n t is, not surprisingly, the m a j o r recipient o f m a n y o f the possible adverse effects of the proposals, largely through the sedimentation probl em. However, t h e combi ned benefits would b e large if t h e proposals were effective. Reduced sewage from seepage a n d surface run-off, a n d reduced silting in th e long t e r m as a result o f properl y drained a n d sealed roads. At t h e same time, i t must b e recognized that a substantial c ontri buti on to t h e sedimentation p r o b l e m comes from t h e activity of a l l coastal constructions (such as seawalls, causeways a n d dredging or reef extraction) pigs on beach backyards, r e m o v i n g ground vegetation over large areas a n d exposing surface soil to erosion by rainfall. A comprehensive approach to managing mari ne water quality a n d t he sedimentation/erosion p r o b l e m in South Tarawa lagoon, for instance, will have to i ncl ude strateges for d e a h g with these issues. O n e way to tackle t h i s i s to i n v o l v e t h e c o m m u n i t y in recognizing a n d solving t he problems with th e m a ri n e environment. Solutions to illegal r e e f reclamation a n d coastal infrastructure development will n e e d to b e initiated by t h e c o m m u n i t y a n d enforced by social pressure a n d sanctions i f they are to b e successful.

Impact Assessment Needs

All t he Climate Change A d a p ta ti o n (CCA) proposals would need closer scrutiny for t heir environmental implications, as stipulated under the E n v i r o n m e n t A c t 1999 despite the efforts m a d e in t he r a n k m g of adaptation options, to w ei gh up the benefits a n d Qsadvantages o f the various climate change adaptation options.

For each p r o p o s e d subproject under the Pilot Islands A daptati on component o f I U P - I 1 a n

should b e undertaken. Ths process would determine the hkely env ir onm en t a l impacts of the proposed activity, a n d c o u l d b e overseen by MELAD, with the

env ir onm en t a l screening process

cooperation of t h e Island Projects Off icer a n d the Isl and D evel opment Committee.

T h e i nit ial

screening would determine if the environmental impacts would b e significant enough to m e r i t further

study.

If t h e impacts are considered likely to b e significant, a n E nvi ronmental Management P l a n would b e formulated to detail the manner in w h i c h the environmental consequences o f the development would b e mitigated. This EMP would form part o f the subproject documentation a n d i t s implementation would b e the re s p o n s i b h ty o f government though the various agencies responsible for t h e sectors in w h i c h t he development wdl occur. For those activities included in MOPSthat might entail environmental impacts, in most cases the responsible m i n i s t r y would b e tasked with environmental screening in order to assess the hkely environmental impacts of proposed activities. T h e ministries would b e p r o v i d e d assistance as needed from t he secretariat.

A social i m p a c t assessment might b e considered for the general set of proposals that would alter the

physical a n d social nature of I(iribati Islands. T h e change in location o f coastal d w e h g s (being set b a c k from the beach area, now with a protective seawall), the concentration of G o v e r n m e n t offices on O u t e r Islands, th e breakmg up o f family a n d c o m m u n i t y u n i t s for resettlement purposes a n d the concept o f z o n i n g l a n d for development. T h e nature a n d extent of the cumulative effects o f these proposals m a y not b e anticipated by the l ocal c o m m u n i t y a n d a social i m p a c t assessment would b e a us ef ul vehicle to address any concerns that might b e evident before the proposals go any further.

W h d e not strictly a n i mp a c t assessment, a study would b e required to prepare a series o f Codes of E n v i r o n m e n t a l Practice (COEP) for the G o v e r n m e n t o f K i r i b a t i use during the planning, design, construction, a n d operation as w e l l as maintenance o f a l l infrastructure projects a n d coastal works in I(iribati. T h e codes would ensure that minimum environmental standards are m e t a n d that appropriate procedures are undertaken to reduce the environmental i m p a c t o f various activities related to coastal works a n d services. E a c h o f the phases of a coastal infrastructure project, i.e. planning, design, construction, a n d operation a n d maintenance are interrelated a n d have Q f f e r i n g pot ent ial to effect (either adversely or beneficially) the environment. T h e overall objective o f the codes i s to p r o v i d e a pollution preventi on approach to general coastal infrastructure works a n d services, establish guidelines for the mi ti gati on o f adverse envi ronm ent al effects, a n d wherever possible indicate opportunities for environmental enhancement for, t he planning, design, construction a n d operation a n d maintenance of the infrastructure projects. I t i s int ende d that the development, approval, a n d subsequent adopti on o f the codes

in conj unct ion

with t he identification of p ro j e c t specific issues a n d t h e preparation o f management a n d mi ti g at ion plans for those issues will a l l o w a re d uc ti on in the dependence on the conventional envi ronment al i m p a c t assessment (EIA) system. Codes o f E n v i r o n m e n t a l Practice are i denti fi ed within t h e f r am ewor k o f environmental assessment o u h e d in I G b a t i â&#x20AC;&#x2122; s E n v i r o n m e n t A c t 1999 a n d t he E n v i r o n m e n t Regulations 2000.

Monitoring Requirements T h e concept o f sustainable development implies a concern to ensure that undesirable changes in t he natural social environment are minimized. I m p a c t assessment, a t both t h e strategic a n d p r o j e c t levels, seeks to foresee such changes a n d to suggest appropriate m o l f i c a t i o n s to the proposal in question, in order to av o i d the changes preQcted. H ow ever, forecasting possible changes i s fraugh t with

uncertainty. Sustainable development must therefore, also include t h e monitoring function - to p r o v i d e i n f o r m a t i o n on the actual state o f the environment so that appropriate management responses can b e formulated. This i s a n i m p o r t a n t issue. Increased economic activity in the primary sectors and in the marine environment will only b e sustainable if that increased activity does not begin t o damage the resources on w h i c h it i s based. Monitoring i s the only way h s can b e detected, w h i c h i s the f i r s t step in developing a management response. Therefore, environmental or resource inventories are necessary, w h i c h use indicator variables to characterize the current state o f the environmental sector o f interest. T h e r e are considerations about takmg measurements that will allow for spatial a n d temporal characterization o f existing variability, s o that the inventories have to b e designed carefully, on a scientific, statistical basis. T h e n monitoring activities have to b e designed with equal care, the i n l c a t o r variables are periodically measured a n d compared with t h e baseline values to provide the basis for detecting changes.

Monitoring priorities in relation to the CCA proposals (and not including strict economic performance monitoring) are: (a)

(c)

the marine ecological resources o f Tarawa a n d around O u t e r Islands; water quality (turbidity, faecal coliform, etc.); indicator organisms (algae, benduc organisms, diversity o f reef fish, etc.); habitat indicators (health a n d integrity o f coral, etc.); and, sedrnentation processes adjacent to settlements (and other local population centers). the physical resources; atmosphere (e.g. air quality a n d climate, average solar radiation, a n d wind speed); waves (for calculation of design wave height for seawalls a n d causeways the following parameters are required: wind speed, wind dnection, effective fetch, wind duration); and, coastline topography to include beach profiles. the village community, age/sex make-up of the population, household structure, employment characteristics, health i n l c a t o r s , public order indicators, attitudmal indicators, a n d so forth.

Conclusions T h e strategic environmental assessment identified a n u m b e r o f issues: There i s a basic sustainable development objective evident in t h e G o v e r n m e n t o f I G r i b a t i Climate Change Adaptation Policy, especially as expressed through t h e CCA strategies. However, there does not seem to have been any f o r m a l environmental assessment o f development options during the early stages of the I G r i b a t i A d a p t a t i o n Program. Nor did there appear to have been any studies into such parameters as carrying capacities, environmental constraints, etc., that would indicate a n environmental planning approach to the development policy. T h e CCA strategies appear to favor a set o f coastal infrastructure development options. At the same time there i s no apparent attempt to integrate these development options into a n institutional framework that specifically considers the wider coastal developmental planning and environmental implications for the nation. An integrated coastal management planning unit strategically placed in the appropriate m i n i s t r y should plan, i m p l e m e n t a n d monitor t h e climate change adaptation projects. Most o f the effects o f t h e various proposed projects wdl probably f a l l on t h e l o c a l c o m m u n i t y and the marine environment. T h e construction phase o f most p r o p o s e d projects would probably lead to increased sedimentation transport in the marine environment, especially near the b d t coastal structures. Social a n d amenity impacts t e n d to b e adverse in t h e short t e r m and positive in the longer term; health a n d general welfare, in particular, are hkely to i m p r o v e

ifthe proposals are implemented. T h e combined social impacts o f the various proposals affecting t h e host community, itself, could b e quite marked.

d) Agricultural a n d fishing activities would probably benefit mainly from three proposals (road a n d causeway constructions, a n d sanitation a n d waste management). L o c a l communities would b e n e f i t from all proposals.

In conclusion, t h e environmental consequences of the proposed climate change adaptation projects have not been closely examined in the CCA Strategy a n d nor have the wider environmental implications b e e n considered in the CCA Policy. T h e nature of the proposals, constructing coastal structures, means that there are likely to b e some environmental problems in the short term. T h e increasing a n d cumulative effects of coastal infrastructure developments are important, a n d i t will b e clearly advisable to initiate a n environmental management p r o g r a m targeted at the coastal development sector. An integrated coastal management p r o g r a m would examine the current extent o f climate change adaptation options and coastal construction activities a n d the impacts (both beneficial a n d adverse) experienced to date. T h e environmental management p r o g r a m should consider the preparation of a N a t i o n a l EM Training Program a n d a series of Codes of E n v i r o n m e n t a l Practice for use during the planning, design, construction, a n d operation as w e l l as maintenance of all roads a n d coastal works in Kiribati. I t would also b e advisable to consider the environmental factors that would limit coastal development activities (environmental sensitivities, natural hazards, natural carrying capacities, etc.). Sedimentation a n d sediment transport play a crucial role in the coastal management sector (for instance, Tarawa), a n d consideration should b e made to commission a sediment budget study o f Tarawa Lagoon, as a start. In h s way, the very features that support coastal development activities can b e managed a n d protected in t h e longer term, to sustain the economic viabihty o f the sector.

All CCA project proposals listed in the matrix would require closer environmental scrutiny through the conduct o f project environmental i m p a c t assessment. A social i m p a c t assessment would b e specifically required for the resettlement project, the d e c e n t r a k i n g government to O u t e r Islands proposal a n d for t h e host c o m m u n i t y attitude to the proposed changes to their village landscape a n d functions. Finally, there should perhaps b e provisions in the CCA Strategy for monitoring key indicators o f t h e marine a n d physical environment, but also the local host c o m m u n i t y to the CCA projects. T h e early detection of undesirable changes allows appropriate responses to b e devised a n d implemented in t i m e to avoid m a j o r damage to the environment, including t h e social fabric o f the village a n d the w h o l e island communities.

ANNEX

10: PROJECT PREPARATION AND SUPERVISION

KIRIBATI ADAPTATION

PROJECT IMPLEMENTATION PHASE(KAP 11)

P l anned

PCN r ev iew I n i t i a l PID to PIC I n i t i a l I S D S to PIC Appr ais al Negotiations Bo a r d / R V P a p p ro v a l Planned date o f effectiveness Planned date o f m i d - t e r m review Planned closing date

09/15/2004

01/30/2006 03/14/2006 05/30/2006 06/30/2006 12/15/2007 06/30/2009

Actual

09/29/2004 10/07/2004 10/06/2004 12/06/2005 03/27/2006

K e y institutions responsible for preparation of the project: T h e Ministry o f Finance a n d E c o n o m i c D evel opment (MFED) was t h e i nsti tuti onal h o m e for ISAP-I, w h i c h represented the preparation phase o f ISAP-11. Furthermore, the N a t i o n a l E c o n o m i c P l a n n i n g O f f i c e (NEPO) was responsible for mainstreaming o f adaptation into the N a t i o n a l D e v e l o p m e n t Strategy a n d the MOPS,a n d has co-organized the nati onal consultations. T h e O f f i c e o f T e Beretitenti (OB) has p r o v i d e d the leadership for t h e N a t i o n a l A dapt ation Steering Committee, a n d has been responsible for pol i cy coordination a m o n g k e y ministries, now to b e institutionalized in the form o f the SNPRA Unit. T h e Ministry of Social Affairs (MISA) has guided the development o f c o m p o n e n t governments a n d community-level adaptation activities.

4, on local

T h e Ministry of E n v i r o n m e n t a n d Agriculture D e v e l o p m e n t (MELAD) has p r o v i d e d technical support to the adaptation efforts in IGribati, a n d has l e d the preparation o f t h e I - I G r i b a t i NAPA, inc luding th e C h a t e Change Study Team, responsible for pri ori ti zati on o f adaptation options a n d establishing climate scenarios. T h e Ministry o f P u b l i c Works a n d Utilities has gulded the design of investments in the water sector a n d for coastal protection, i n c l udi ng capacity building elements. 1

T h e I G r i b a t i Association o f NGOs (IUNGO), the I G r i b a t i C o u n c i l of Churches (ICCC), t he N a t i o n a l Womenâ&#x20AC;&#x2122;s Organization (AMAIC), a n d t h e Chamber o f C ommerce have a l l contri but ed through their participation in the N a t i o n a l A d a p t a t i o n Steering C o m m i t t e e a n d t h e consultations

during ISAP-I.

B a n k staff a n d consultants who w o r k e d on t h e proj ect i n c l u d e d

I BismaHusen I NurulAlam I CristoDher Bleaklev Stuart Whitehead Richard Croad I a n Burton M e i Wang Farid Mazhar Patricia IUeystuber Josephme Masanque

I Procurement SDecialist I Procurement SDecialist I Senior CountrvOfficer Consultant Infrastructure Specialist

Independent Scholar Senior Counsel Paralegal Consultant Senior Financial Management Specialist

Bank funds expended to date on project preparation: 1. Bank resources: $80,676.92 2. Trust funds (GEF-PDF-B):$82,465.43 3. Total: $163,142.35 Estimated Approval and Supervision costs: 1. Remainingcosts to approval: $50,000 - BB 2. Remaining costs to approval: $16,634.57 - TF :GEF PDF-B 3. Estimated annual supervision cost: $75,000

EASUR Consultant Consultant

LEGEA LEGEA TFO MNAFM

ANNEX 11: DOCUMENTS INTHE PROJECTFILE

KIRIBATI ADAPTATION PROJECTIMPLEMENTATION PHASE(KAP 11) 1. 2. 3.

Climate Change A d a p ta ti o n Policy a nd Strategy Statement, 2005 I U P Social Assessment, 2004 I G r i b a t i A d a p t a t i o n P ro g ra m I1 IBTF, 2005 Det aile d P ro j e c t Implementation Plan, w h i c h includes the following commissioned reports a n d handbook 0

Procedures M a n u a l for Small-scale A daptati on Investments on the O u t e r Islands

Coastal Pro te c ti o n Measures

W at e r Resources Investments

Legislative a n d Regulatory Review

L a n d A c q u i s i ti o n a n d Resettlement Policy Framew ork

Strategic E n v i r o n m e n t a l Assessment

E c o n o m i c analysis of adaptation to climate change Various Pro j e c t Preparation documents, i ncl udi ng the G r a n t Agreements that funded preparation; mission reports P r oc ur e me n t Plan, 2005 I S r i b a t i I(AP k s k Rating, 2005

6. 7.

A N N E X 12: STATEMENT OF LOANS AND CREDITS

KIRIBATI ADAPTATION PROJECT IMPLEMENTATION PHASE

(m11)

(No Information available)

Difference between expected and actual disbursements

Original Amount in US$Millions ProjectID

IBRD

Purpose

Total:

0.00

GEF

IDA

0.00

Cancel.

Undisb.

0.00

Orig.

Frm. Rev’d

0.00

KIRIBATI STATEMENT OF IFC’s Held and Disbursed Portfolio In Millions o f U S Dollars Committed

Disbursed

IFC FY Approval

Company

Loan

Total portfilio:

0.00

IFC

Equity

Quasi

Partic.

0.00

Loan

0.00

Equity

Quasi

Partic.

0.00

Approvals Pending Commitment FY Approval

Company

Total pending commitment:

Loan

Equity

Quasi

Partic.

0.00

ANNEX

KIRIBATI

13: COUNTRY AT A GLANCE

ADAPTATION PROJECT - IMPLEMENTATION PHASE(KAP 11)

POVERTY and S O C I A L 2002

Population, mid-year (millions) GNI per capita (Atlas method, US$) GNI (Atlas method, US$ billions)

Kiribati

East Asia 8 Pacific

Lowermiddleincome

0.09 8x1 0.08

1,838 950 1,740

2,411 1,390 3,352

2.5

10 12

1.0 12

39 63 50

a8 P7 P9

38 69 33 '6 76 Q 06 x15 x16

49 69 30 11 81 Q 111 111 1x1

D e v e l o p m e n t diamond' Life expectancy

Average annual growth, 1996-02 Population (%) Laborforce (%) M o s t recent e s t i m a t e ( l a t e s t year available, 1996-02) Poverty (%of population below nationalPOvefty line) Urban population (%of totalpopulation) Life expectancyat birth (years) Infant mortality(per 1,000live births) Child malnutrition (%of children under5) Access to an improvedmter source (%ofpopulation) Iiliteracy(%ofpopulation age a+) Gross primary enrollment (%of school-age population) Male Female

GNI per 1 capita

I Access to improved water source -Kiribati Lo wr-middle-income group

KEY ECONOMIC RATIOS and LONG-TERM TRENDS 1982

GDP (US$ billions) Gross domestic investment/GDP Exports of goods and services/GDP Gross domestic savings/GDP Gross national savings/GDP Current account balance/GDP Interest payments/GDP Total debt/GDP Total debt servicelexports Present value of debt/GDP Present value of debt/exports (average annualgrokfh) GDP GDP percapita

Private consumption General government consumption Imports of goods and services

(average annualgrokfh) Agriculture Industry Manufacturing Services

2001

0.03 56.2 P.5 -45.0 1ff.3

0.04

214

2002

0.04

E c o n o m i c ratios' Trade

1 ,\

, ,

\ \

, ,

Domestic savings

Investment

\ ,

Indebtedness 1982-92 1992-02

STRUCTURE o f t h e ECONOMY (%of GDP) Agriculture Industry Manufacturing Services

1992

0.03 63.3 9.1 -44.1 60.3

0.2 -2.0

200 1

2002 2002.06

2.8 0.5

16 -0.7

2.8 0.7

1982

1992

2001

26.2 8.3 2.0 65.5

25.1 9.2 2.1 65.7

90.1 54.0 16.5

90.9 54.1 lQ.8

1982-92 1992-02

---Kiribati Lower-middle-income group

2002

Growth o f i n v e s t m e n t and GDP (%) 'O

-5

2001

17 1.2 -0.9 -0.7

Private consumption General government consumption Gross domestic investment Imports of goods and services

2002

Kiribati PRICES and GOVERNMENT FINANCE Domestic prices (% change) Consumer prices Implicit GDP deflator

2001

1992

1982

5.5 7.4

4.0 3.1

2002

2.4

Inflation (%)

2.7

Government finance (% of GDP, includes current grants) Current revenue Current budget balance Overall surplus/deficit TRADE (US$ millions) Total exports (fob) Copra Fish Manufactures Total imports (ci9 Food Fuel and energy Capital goods

2001

1992

1982

2002

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

Net income Net current transfers

1982

5 31 -26

22 55 -33

6 16

13 27

Memo: ReSeNeS including gold (US$ millions) Conversion rate (DEC, /oca//US$) EXTERNAL DEBT and RESOURCE FLOWS (US$ millions) Total debt outstanding and disbursed IBRD

2001

2002

Current account balance Financing items (net) Changes in net reserves

1992

3 -1 1

1.o

1.4

1982

1992

1.9

1.8

2001

2002

IDA

Total debt service IBRD IDA Composition of net resource flows Official grants Official creditors Private creditors Foreign direct investment Portfolio equity World Bank program Commitments Disbursements Principal repayments

-0-CPI

Export and import levels (US$ mill.)

Export price index (1995-100) Import price index (1995-700) Terms of trade (1995-100) BALANCE of PAYMENTS

deflator

----GDP

Exports

Imports

Current account balance to GDP (%)

I I

ANNEX 14: INCREMENTAL COST AND ECONOMIC A N A L Y S I S

KIRIBATI ADAPTATION PROJECT

- IMPLEMENTATION PHASE(KAP 11)

T h e 'Do Nothing' Scenario. A World Bank-funded study in 2000 indicated that in the absence of adaptation, t h e impacts o f current climate change scenarios in I G r i b a t i c o u l d b e severe, disrupting m a j o r economic a n d social sectors. Up to 25-54 percent of areas in Bikenibeu, South Tarawa a n d 5580 percent o f B u a r h , North Tarawa, c ou l d b e inundated by 2050. T h e c o m b i n e d effect o f sea level rise, changes in rainfall, a n d changes in evapo-transpiration due to higher temperatures coul d result in a 19-38 percent d e c h e in the thlckness of the m a i n groundwater lens in Tarawa. Agriculture particularly for taro a n d pandanus - coul d decline due to storm-induced saltwater pr oduc t iv it y intrusion into groundwater lenses. H i g h e r temperatures coul d also increase t h e epidemic potenti al for dengue fever by 22-33 percent, increase the incidence o f ciguatera poisoning a n d degradation o f coral reefs, a n d &vert critical tuna resources away from I G r i b a t i waters. C onti nued degradation i s estimated to result in p o te n ti a l economic damages averaging US$8-$16 million a year, equivalent to 17 to 34 percent of t h e 1998 GDP.

Along with th e other c h a t e - r e l a t e d r i s k s facing the country, IGribati's ecosystems also experience extreme vulnerability, particularly of their plant, animal, soil a n d water resources, a n d their cultures as w e l l their traditional resource-use systems to outside h u m a n i nduced disturbance a n d overexploitation. G i v e n this, successful a tol l development requires that the integrated aspects of t he env ir onm en t a n d social conditions, as w e l l as external conditions - in relation to stability o f global economic systems - are taken into account.

Ecosystems. I G r i b a t i i s h o m e to a n u m b e r of globally i m p o r t a n t mari ne biodiversity, i ncl udi ng up to 200 species o f coral; hundreds o f f i s h species, i ncl udi ng threatened species such as the H u m p h e a d wrasse (Cheilinus undulates) a n d Sicklefin L e m o n Shark (Negaprion acutidens); a n d several threatened turtle species, such as th e endangered green turtle (Chelonia mydas) a n d critically endangered H a w k s b i l l turtle (Eretmochelys imbricata). I G r i b a t i also provides a nesting area for a variety o f birds, inc luding vulnerable migratory species such as t h e Bristle-thlghed C url ew (Numenius tahltiensis) a n d endangered species such as I<uhl's L o r k e e t (Vini kuhlii) a n d P hoeni x P etrel (Pterodroma alba). In addit ion to th e effects o f climate change, coastal degradation a n d poor m a n g r o v e a n d coral r eef management are endangering habitats for t h i s i m p o r t a n t biodiversity. In t h e absence of adaptation, these impacts would translate in th e l o s s o f globally i m p o r t a n t biodiversity, l a n d degradation, l o s s of m ar ine a n d coastal habitats a n d re d u c ti on in overall natural capital.

Status o f threatened ecosystems. M a r i n e resources are generally considered abundant. T h e state of abundance depends on t h e health o f th e corals, w h i c h i s partly determined by t h e impacts o f higher temperatures on the physical c o n d i t i o n o f corals. C o r a l bleaching has been observed in several parts o f IGribati, i n c l u d i n g th e G i l b e r t Islands, particularly during El Niiio episodes, w h i c h already feature t he higher sea surface temperature th a t are expected to occur m o r e frequently w h e n climate change progresses. However, th e extent a n d th e severity o f current coral bleaching are poorly known. With t he assistance o f GEF, through UNDP, I G r i b a t i prepared i t s N a t i o n a l B i odi versi ty Strategy a n d A c t i o n P l a n (NBSAP) in 1998. I G r i b a t i i s presently also i mpl ementi ng the NBSAP Add-on Project, o f w h i c h the expected outputs are: the extensive consultations that have b e e n undertaken with grassroots communities a n d inter-island consultations with a l l islands o f I G r i b a t i (North, C entral a n d South islands i n c l u d mg the L i n e a n d Phoeni x Groups); a n d the p r o d u c t i o n o f a d r a f t nati onal r e p o r t on I G r i b a t i NBSAP, for submission to t h e Conference o f the Parties (COP) to t h e C o n v e n t i o n on Biological Diversity (CBD). T h e baseline on t h e status o f some o f the biodlversity i s s t i l l b e i n g established.

G i v e n the p o t e n t i a l threats of climate change to the biodiversity o f Kiribati, I U P - I 1 wdl contribute to biodiversity conservation in various ways, particularly by improving the attention for environmental sustainabhty as part o f coastal protection and asset management strateges a n d activities to reduce beach mining, supported by strong participatory processes a n d public awareness campaigns. Moreover, I U P - I 1 would assist in bddmg a monitoring system, particularly for t h e coral reefs, but w h i c h can also b e adapted for other ecosystems, to strengthen t h e countryâ&#x20AC;&#x2122;s capacity to reduce the ecosystemsâ&#x20AC;&#x2122; vulnerability; supplemented by enhanced access to n e w technologies in coral and ecosystem management (including through pilot experiments). T h e monitoring system i s expected to help streamline sustainable integrated systems management into adaptation processes, buildmg on governance aspects that will support the enabling environment needed to make such activities successhl, a n d i m p l e m e n t i n g the NBSAP objective of integrating biodiversity conservation into the national development process.

Target ecoystem. Target ecosystems are primarily coastal a n d near-shore marine habitats, particularly coral r e e f a n d mangrove systems, w h i c h harbor valuable biodmersity. Specific target areas a n d ecosystems will b e selected during the f i r s t year of the project, once MELAD has assessed the existing i n f o r m a t i o n i t has a n d prioritized the ecosystems that are most easily supported by the I U P , a n d that would not b e duplicated by other on-going efforts in the country.

The GEEiBaseline Scenario. T h e 2004-2007 N a t i o n a l D e v e l o p m e n t Strategy recognizes the need to develop participatory a n d cost-effective strategies to manage t h e risks of climate-related events. U n d e r the baseline sustainable development scenario, these measures would b e l i m i t e d to programs addressing current-day vulnerabilities, a n d measures w h c h t h e government, communities a n d private sector c o u l d a f f o r d to reduce maladaptation: e.g. continued clean-up efforts a n d waste management in u r b a n Tarawa; reduction o f unaccounted-for-water in piping systems; protection and/or l a n d reclamation for critical infrastructure; and population a n d settlement management to a v o i d unsustainable p o p u l a t i o n growth in fragde areas; as w e l l as efforts to enhance the governmentâ&#x20AC;&#x2122;s capacity for planning a n d coordination. The Alternative Scenario. T h e objective o f the project i s to develop a n d demonstrate the systematic diagnosis o f climate-related problems a n d the design o f cost-effective adaptation measures, w h i l e continuing the integration of clunate risk awareness a n d responsiveness into economic a n d operational planning. In that context, the alternative scenario supported through GEF financing includes a n expansion of selected c h a t e - a f f e c t e d government programs to better address climate risks. These priority programs were identified using national criteria based on solid economic, environmental a n d social principles. Their expansion aims to address the incremental development costs for K i r i b a t i (incurred and/or exacerbated due to climate change), even though they also yield additional short-term benefits. M a n y o f these additional efforts also generate global environmental benefits by protecting ecosystems a n d biodiversity threatened by global climate change and/or current unsustainable ad-hoc response measures to climate-related impacts, particularly in relation to coastal management. Bilateral financing has been arranged to cover t h e additional costs o f expanding other priority c h a t e - a f f e c t e d programs where f e w global benefits are i n v o l v e d (such as in the water sector). U n d e r the alternative scenario, the GEF would finance the a d h t i o n a l costs o f expanding t h e baseline p r o g r a m to include those activities that also generate global environmental benefits. To ensure optimal effectiveness a n d sustainability, these activities would b e fully integrated into the baseline outlined above. T h e GEF alternative would add the following critical elements:

G l o b a l benefits include: (i) strengthening o f the Governmentâ&#x20AC;&#x2122;s capacity to deal with the global environmental a n d sustainable development consequences o f the increasing climate risks, by fully integrating adaptation into economic planning; (iibetter ) compliance with obligations stemming from the countryâ&#x20AC;&#x2122;s international commitments for the conservation a n d sustainable use of biodiversity resources in t h e country, even in the face of the n e w c h a t e risks; (iii) conservation a n d sustainable use o f aquatic biodiversity in globally important ecosystems, including through greater involvement o f c i v i l society a n d communities in the planning a n d management o f the aquatic resources, a n d i m p l e m e n t i n g actions that reduce the threat to coastal areas a n d coral reefs; (v) awareness raising a m o n g high-level policy makers as w e l l as the wider public; (vi) development o f tools a n d techniques that will result in sustainable management of c h a t e change r i s k s in a n integrated a n d cost-effective manner. T h e p r o j e c t i s also likely to p r o m o t e positive follow-up at the global scale, i n c l u d i n g the identification a n d promotion o f alternative livelihoods to l o w e r the levels o f threat, as w e l l as p r o m o t e the development o f n e w technologies a n d methodologies for i m p r o v e d adaptation including t h e approach to mainstreaming participatory climate risk management into economic planning. M o r e specifically, i t i s expected that the Government-funded b a s e h e activities comprise a b o u t 35% o f the total project, while bilateral donors p r o v i d e another 38%. T h e GEF c o n t r i b u t i o n t h u s makes up 27%, w h i c h will b e used for activities that entail significant incremental development costs in h e l p i n g I G r i b a t i adapt to the long-term effects o f climate change and sea level rise a n d fit within coherent programs that wdl also deliver global environmental benefits. T h e GEF portion o f 27% i s w e l l within with t h e targets for cost-sharing o f the Strategic Priority. T h e GEF will p r o v i d e a large share of the additional costs to i m p r o v e the participatory p l a n n i n g a n d mainstreaming o f climate change adaptation into government planning, p a r t o f c o m p o n e n t 1. These costs are assumed to b e largely incremental since they would not need to b e i n c u r r e d in t h e absence o f climate change. In the baseline scenario (without climate change), I G r i b a t i might institutionalize bottom-up planning a n d coordmation, but t h i s would not need to include considerations o f climate change adaptation.

For c o m p o n e n t 2, w h i c h deals with adaptation activities relating to l a n d use, physical investments a n d ecosystem management (all guided by a n integrated coastal zone management approach), t h e GEF would primarily fund the incremental activities related to awareness a n d sustainable coastal l a n d use, as w e l l as adaptation activities related to monitoring a n d conservation of coastal ecosystems that are threatened by c h a t e change. A n o t h e r p a r t of t h i s component, that w h i c h relates specifically to the protection o f public assets such as the hospital, causeways, a n d other critical infrastructure; would b e funded by NZAID.

C o m p o n e n t 3, w h i c h deals with climate risk management relating to freshwater resources, will generate relatively l i m i t e d global environmental benefits a n d will b e funded entirely by AusAID. T h e GEF would support a large p a r t o f c o m p o n e n t 4, w h i c h aims to enhance climate risk management by local governments a n d at the O u t e r Islands o f IGribati. These activities are unlikely to b e funded under the b a s e h e scenario, given t h a t they are largely driven by concerns about increasing climate risks. T h e pilot small-scale adaptation investment scheme, w h i c h i s i n c l u d e d in t h i s component, wdl probably contain a m i x t u r e o f adaptation efforts, some o f w h i c h m a y not generate global benefits; therefore, NZAID would contribute a substantial share o f t h e cost o f t h e scheme.

F u r t h e r m o r e , local c o m m u n i t i e s materials.

would also contribute, largely in t h e form of l a b o r a n d l o c a l

T h e P r o j e c t m a n a g e m e n t component, consisting of p r o j e c t m a n a g e m e n t a n d t h e r e v i e w a n d c o m p i l a t i o n o f lessons learnt of I U P - I 1 to better prepare for t h e e x p a n s i o n of t h e adaptation p r o g r a m , would not h a v e b e e n needed in a baseline scenario, a n d would b e f u n d e d jointly by t h e GEF a n d NZAID.

A s u m m a r y o f t h e p r o p o s e d g l o b a l a n d l o c a l benefits are presented b e l o w . Global and local benefits of the proposed project Measure facilitating the establishment o f a coordinated legal, institutional and operational framework (includmg policies and management options) t o enhance the reshence o f national biodiversity and natural systems by reducing their vulnerability to c h a t e change specific investment measures for conserving and restoring coastal ecosystems impacted by c h a t e change; reduction of pressures o n biodiversity arising f r o m habitat conversion induced by c h a t e change impacts, through design and adoption of more effective land and buffer zoning, and countering o f habitat fragmentation through establishment of marine and coastal protection corridors;

specific investment options that would reduce the impacts o f c h a t e change on coastal and marine resources, therefore addressing impacts o n coastal and fishing communities;. reduction o f vulnerabhty of water resources through application o f supply and demand measures, together with specific investments in infrastructure for water conservation;

Global benefits Improve coordination and implementation o f global conventions

Local benefits Maximize use o f existing institutional assets

Maintain ecosystem integrity

Maintain value o f tourism attractions

Protect biodiversity in coastal areas

Maintain eco-tourism assets

Protect feeding and staging

grounds and prevent declines in populations o f migratory

birds.

Protect marine biodiversity Reduce stress o n coastal ecosys tems Prevent reduction o f staging, feeding and breeding grounds f o r fish. Minimize impacts o f alteration o f water cycle on coastal flora and fauna.

Maintain fisheries

Reduce water shortages for agriculture and human use, caused by changes in precipitation cycles and saline intrusion in aauifers

Without these measures, not only would t h e global benefits not b e realized but t h e country would b e

potentially facing m o r e severe i m p a c t s o f c h a t e change. E v e n with t h e i m p l e m e n t a t i o n o f adaptation measures t h e impacts of g l o b a l climate change will severely affect these small i s l a n d nations.

Economic Assessment T h e economic assessment of a project, including a n adaptation project, follows a n established logic. I t requires a n estimate o f the initial a n d operating costs of a range of project options; identification of the least-cost design over a defined planning period; quantification of project benefits and assessment o f risks; analysis of where the costs and benefits wdl fall; a n d a comparison o f costs a n d benefits to determine whether devoting resources to the project (and sacrificing other uses of the resources in so doing) i s worthwhde. A fuller dscussion o f economic analysis as i t relates to adaptation to c h a t e change i s p r o v i d e d in A n n e x 7 of the Project Implementation Plan.

A conventional economic analysis cannot presently b e applied to I U P - I 1 as a stand-alone project,

though future adaptation projects that i s likely to result from I U P - I 1 can a n d will b e analyzed in t h i s

way.

IUP-11â&#x20AC;&#x2122;s outputs will consist o f changes to CCA-related institutional a n d operational arrangements, a n d the development a n d feasibility-proving o f financial assistance schemes, design processes a n d physical works. T h e intended outcome i s that I f i i b a t i will b e equipped with the field-tested engineering designs, information, analytical capacity and technical know-how needed to adapt successfully to climate change in the years ahead. T h e difficulty with a conventional analysis of I U P - I 1 i s that although the projectâ&#x20AC;&#x2122;s estimated costs and fmancing p l a n are clear, IUP-11â&#x20AC;&#x2122;s delivery o f i t s intended benefits i s subject to two fundamental uncertainties. These relate to: 0

quantifying the severity a n d pace o f climatic change over the n e x t 20-50 years a n d the associated r i s k s that face I h - i b a t i and i t s people, l a n d a n d social a n d economic assets; a n d estimating the probable effectiveness of I U P - I 1 in delivering changes in l a n d use, protective structures for existing facilities, a n d a w i d e range o f other measures that together over time m a y reduce c h a t e risk a n d the related damage that the country a n d communities would otherwise suffer

T h e f i r s t uncertainty means that the value o f damage that might b e avoided by implementing the measures proposed in I U P - I 1 cannot at present b e quantified precisely enough for a n orthodox 4 economic appraisal. Earlier estimates o f the possible range o f losses from climatic events reliably indicate only that these c o u l d b e very large. As experience with c h a t e - r e l a t e d threats to communities a n d infrastructure throughout the country grows, a n d data on t h e physical effects of the changing climate (rainfall patterns, storm severity, sea levels a n d temperatures) accumulate, a clearer valuation o f the future damage that c o u l d b e avoided through adaptation will emerge. T h e second uncertainty i s o f i m m e d a t e practical significance. T h e c o m m i t m e n t a n d e f f o r t o f the government, communities, a n d the private sector i s critical to ensuring t h a t I U P - I 1 indeed has beneficial results. On the o n e hand, the expenditure o f the project cost o f US$6.6mover three years wdl yield f e w lasting benefits ifstakeholders fail to u h e the capacity that t h e project i s designed to create, in the form of a climate-aware planning environment, i m p r o v e d design a n d construction capabhty a n d m o r e secure public assets. On the other hand, fully effective implementation of I U P - I 1 would significantly reduce r i s k s attributable to climate change and, further, would greatly reduce r i s k s that are presently faced irrespective o f c h a t e change. T h e actual benefits o f I U P - I 1will depend to a 4

World Bank RER 2000, Cities, Seas and Storms

v e r y l a r g e d e g r e e on t h e a m o u n t of sustained e f f o r t d e v o t e d to i m p l e m e n t i n g t h e r e f o r m s t h a t I U P - I 1 calls for.

In r e c o g n i t i o n o f these analytical constraints, t h e p o t e n t i a l b e n e f i t s o f I U P - I 1 by c o m p o n e n t are q u a l i t a t i v e l y d e s c r i b e d as follows:

Component

I. Policy,

planning, and information

Sub-components (summarized) Participatory processes for awareness, consultations, i n f o r m a t i o n materials, p o l i c y coordination a n d development programs, i n f o r m a t i o n for climate risk management

Expected economic benefits Greater popular understanding a n d acceptance o f the need to adapt to climate change, a n d o f the risks o f ignoring climate change in investment, habitation, a n d l i v e l i h o o d decisions; accumulation o f i n f o r m a t i o n needed to assess c h a t e change a n d i t s impact in IGribati, leading to: increasing implementation o f c h a t e - a w a r e decisions by individuals a n d communities; reduction o f vulnerabiltty a n d avoidance o f damage at all levels o f society

11. L a n d use,

physical structures, a n d ecosys tems

A d a p t i n g l a n d use (strengthening regulation), i m p r o v e d environmental monitoring, c h a t e proofing public assets

Reduction in beach mining, m o r e effective coastal hazard protection, p r o t e c t i o n for public assets, monitoring o f ecosystems with effective response measures, l e a d m g to: reduction o f coastal erosion a n d avoidance o f damage to coastal structures a n d ecosystems maintenance o f livelihoods that might otherwise b e threatened by c h a t e change avoidance o f dlsaster-induced h t s to economic

growth ~~

111. Freshwater resources

U p d a t e water policy for climate awareness, implement chate-aware water supply planning in S Tarawa a n d the O u t e r Islands

Protection o f existing a n d future p u b l i c water resources to ensure sustainable supply throughout IGribati, l e a d m g to: avoidance o f mounting public health costs d u e to insufficient or contaminated water supply avoidance o f productivity losses due to water supplyrelated p u b l i c health impacts s u p p o r t for private sector investment r e q u i r i n g reliable a n d safe water supplies

IV. Capacity at island a n d c o m m u n i t y level

L o c a l consultations a n d participatory risk assessments, training in climate-aware local government administration, pilot schemes o f adaptation projects in the O u t e r Islands

above ) Similar to (I

V. Project

management

E f f e c t i v e national coordination o f KAP-11, project monitoring and review for later stages of implementation

Reinforcement o f implementation o f I U P - I 1 programme elements at all levels o f society, in the urban areas and in the Outer Islands, and periodic review o f the project leading to: timely changes in project emphasis as indicated b y experience to ensure sustained maximum project benefits at least cost over a lengthy period o f t i m e assurance that the project i s being implementedto maximum feasible effectiveness to reduce climate risk to all groups and areas o f IGribati

I t i s i m p o r t a n t to n o t e that although IUP-11â&#x20AC;&#x2122;s components a n d sub-components have been carefully chosen to deal effectively with r i s k s associated with climate change, a l l o f t h e m would stLu b e w o r t h w h d e even in the absence o f climate change. Small communities living in a t o l l environments have always faced threats from severe weather. T h e processes o f economi c development a n d p o p u l a t i o n increase are m a k i n g such communities increasingly vulnerable to natural disasters, a n d will continue to do so even without climate change. T h e impacts of these pressures are clearly discernible in IQribati. I U P - I 1 has b e e n designed so that there will b e N o Regrets in t h e future about expending t he resource cost of the p ro j e c t even ifthe m o r e extreme climate change predictions do not occur, or occur later t h a n predicted.

Although t h e expected economic benefits in the above table cannot b e quantified, there i s a strong consensus a m o n g donors, the government, communities a n d i n d v i d u a l s throughout I G r i b a t i that they are significant, a n d that a do-nothmg response to the threat posed by climate carries unacceptable risks. I U P - I 1 calls for th e expenditure of approximately US$6.6m.However, as roughly US$2.3m o f t h i s am ount (the GoI< contribution) represents resources that might have b e e n spent anyway (with or without IUP-11), th e n e t additional resources â&#x20AC;&#x2DC;at riskâ&#x20AC;&#x2DC; in the event o f possible proj ect failure i s approximately US$4.3mp r o v i d e d through external support.

Conv ent ion a l appraisal indicates that th e expenditure of US$4.3m on a public i nvestment proj e ct to manage climate risk should r e t u r n a benefit, in t h e form of avoidance o f damage that would have occurred without th e project, worth about US$0.5mper year over 25 years, in order to yi el d a r e t u r n against init ia l cost in excess of 12% (a rate c o m m o n l y required by donors o f p u b l i c sector projects). As already noted, the climate-related risk that I G r i b a t i currently faces, in t h e form o f potenti al l o s s o f lives a n d livehhoods, brakes on economic growth, climatic risk to a n d d e m a n d pressures on water supply resources a n d associated threats to publ i c health a n d h u m a n productivity, loss o f l a n d area due to inundat io n a n d erosion, a n d u n d e rm ini ng o f infrastructure a n d restricted delivery o f services, represent economic costs to I(iribati that are currently not measurable but are worth significantly m o r e t han US$0.5mannually.

I U P - I 1has the potential to establish a pl anni ng framework a n d m o m e n t u m for t h e other elements o f risk r educ t io n that will a v o i d damage to I G r i b a t i to a value greatly exceeding t h e minimum damage avoidance required to m a k e th e p ro j e c t a w o r t h w h i l e investment. In t h i s light, I U P - I 1 i s a potentially hghly productive use of donor funds, albeit requi ri ng a substantial counterpart c o m m i t m e n t to i m p l e m e n t permanent changes to p l a n n i n g procedures, l a n d use regulations, a n d o t h e r measures affecting the entire p o p u l a ti o n for th e i n defi ni te future.

O n c e t h e decision has been made to proceed with KAP-11, the most serious risk i s the potential failure by t h e g o v e rn m e n t a n d other stakeholders to utllize the capacity for clunate-aware pl anning that IUP-I1 seeks to build, t h u s preventing the country from reaping the m a x i m u m or in the extreme

case any, benefits from the project. On the positive side the proj ect represents a clear opportunity to manage a n d substantially reduce climate risk, asserting a valuable degree o f c o n t r o l over a threat that will otherwise seriously weaken th e countryâ&#x20AC;&#x2122;s prospects.

ANNEX

15: STAP ROSTER REVIEW

AND RESPONSESTO WORK-PROGRAM ENTRY QUESTIONS

KIRIBATIADAPTATIONPROJECT IMPLEMENTATION PHASE(KAP 11) Project Reviewer:

KEY I S S U E S

I a n Burton - I n d e p e n d e n t scholar a n d consultant. Scientist Emeritus, Meteorological Service o f Canada. P r o f e s s o r E meri tus University o f Toronto.

Scientific and technical soundness of the project T h e conceptual basis for the design o f t h i s proj ect conforms to current thinking about adaptation to climate change. I t i s now widely u n d erstood that adaptation to climate change should b e fully integrated into t h e development process a n d that there should b e very f e w or no “stand alone” adaptation projects. T h e project bdds upon previous a n d ongoi ng work in the f i r s t phase o f t h e I b i b a t i A d a p t a t i o n Program, a n d takes a moderate step into implementation. I t i s encouraging to see that t he framers of t h i s p ro j e c t have resisted the temptati on to r u s h into m a j o r construction or “concrete” adaptation, a n d have crafted a b l e n d of actual adaptation measures on a small scale together with activities to increase awareness o f clunate change r i s k s a n d appropriate responses, a n d with polic y c o o rd i n a ti o n a n d planning. I mprovements in monitoring a n d observing capacity in both meteorological a n d ecological systems a d d further capacity building elements. W h e n c om p l e te d t h i s project will have strengthened t h e institutional a n d technical capacity for t he im plem ent ati o n o f adaptation measures; strengthened p u b l i c awareness a n d understanding a n d hence p u b l i c support for the necessary adaptation policies; a n d demonstrated practical adaptation measures in a small n u m b e r of pilot projects. Ths wdl lay the ground work for a consideration o f a m o r e substantial adaptation p r o g r a m in IL4P stage 3.

Identification o f global environment benefits T h e identification of global environmental benefits has been a stumbling b l o c k in t h e m o v e towards a n orderly process of adaptation to climate change u n d e r the UNFCCC. This p r o j e c t substantially overcomes t h e obstacles by the i d e n ti fi cati on o f benefits from the i m p r o v e d management, conservation, a n d sustainable use o f integrated ecosystems a n d biodiversity in coastal l a n d a n d water areas. Ths i s p a r t a n d parcel of the w i d er strategy of achieving sustainable adaptation, i n c l u d i n g t h e O u t e r Islands a n d th e large ma ri n e resources surrounding K i ri bati . To b e sure there are also m a n y adaptation benefits from th e p ro j e c t that f a l l locally, but i t i s clearly impractical to d r a w a sharp l i n e between these different kmds of benefits.

H o w does the project fit within the context of the goals of the GEF? T h e pr ojec t co n fo rms to th e objectives o f t h e Special Priority for Adaptation, w h c h i s a n e w experimental window established to develop experience in the fundmg o f actual a n d practical adaptation measures, or to go a step b e y o n d pl anni ng a n d preparing to adapt. (In t h l s sense the SPA a n d t h i s p ro j e c t are a n early example o f Stage I11 adaptation as specified in UNFCCC/CP/l995/7/Add.l), a n d as envisaged in C o n v e n t i o n Articles 4.lb a n d 4.4.

Regional context T h e project i s a n exemplary design for adaptation to clunate change a n d sea level rise i s small islands. I t i s a ground breaking demonstration of how to integrate adaptation into the development process. Since I G i b a t i i s isolate from i t s nearest neighbors there are n o significant international issues.

Replicability of the project

This project i s a n i m p o r t a n t pilot a n d demonstration project for the incorporation of practical adaptation measures into development planning. I t provides a m o d e l that c o u l d w e l l b e adopted by other small island nations. T h e principles being followed here extend in fact to a1 c h a t e change adaptation projects a n d mutatis mutandis could b e used in other m u c h larger a n d non-island countries.

Sustainability o f the project M u c h o f the p r o j e c t c o u l d b e described as capacity bddmg in the sense that Components 1 to 4 each contains measures for t h e change o f practices in planning a n d implementation, reinforcement of existing programs, a n d institutional strengthening. Such n e w capacities are a n essential requirement for any expanded adaptation p r o g r a m that m a y follow in I(AP - 3. E v e n in t h e absence of a I(AP 3, if some form o f adaptation p r o g r a m i s continued by the G o v e r n m e n t of I h b a t i (and that seems probably given the involvement o f the O f f i c e o f T e Beretitenti) a n d given t h e demonstrated c o m m i t m e n t to adaptation since 1999), t h e n w h a t has been generated by t h i s project (I(AP 2) wiU certainly b e sustained a n d used. There m a y b e some risk that a I(AP 3 does not materialize a n d that the GoI< loses i t s m o t i v a t i o n a n d that therefore the enhanced capacity c o u l d wither a n d die. O n e safeguard against t h i s i s t h e public awareness element in the project a n d the hgh level o f stakeholder involvement. P r o v i d e d that t h i s works as intended i t will not b e easy for the GoI< to drop i t s adaptation commitments. T h e benefits o f the actual adaptation measures to b e implemented under t h i s project (eg. change in the pattern of coastal aggregate mining, furing leaks in the water distribution system) can b e expected to last subject to the n o r m a l requirements o f maintenance.

Miscellaneous

This project i s w e l l connected a n d integrated with other focal areas, especially biodiversity, a n d contributes substantially to environmental management a n d sustainable development. O n e o f i t s most attractive features i s the way it combines project funding from several sources, (AusAID, NZAID, EU, UNDP, a n d ADB). T h e substantial majority o f t h e fundmg for t h i s project in fact comes from the GoK a n d the above donors, leaving a 27% c o n t r i b u t i o n from GEF. T h e project i s unusual in the extent to w h i c h i t involves c o m m u n i t y level leaders a n d stakeholders. I t i s a n innovative and w e l l designed project w h c h m a y w e l l b e a k e y in pioneering a p a t h to c h a t e change adaptation w h c h can b e f o l l o w e d by others. I t i s difficult for a n expert from the STAP Roster who has never set foot in I G r i b a t i to b e completely confident in h i s assessment. Without b e i n g on the ground a n d meeting the personnel i n v o l v e d i t i s not possible to get a good â&#x20AC;&#x153;feelâ&#x20AC;? for the project. A r e the people in charge really capable, are they committed, a n d do they have a strong a n d sustained motivation? T h e p r o j e c t documents go j u s t

about as far as i s h u m a n l y possible to alleviate such concerns

through the p r i n t e d word.

WORK PROGRAM: COMMENTS FROM COUNCIL MEMBERS (REFERENCE TO GEF/C.27/6) Kiribati: Kiribati Adaptation Program - Pilot Implementation Phase (KAP-11) COMMENTS FROM F M C E 169. T h e Re p u b l i c of I G i b a t i , with a popul ati on o f 97,000, consists in 33 low-lying atol l islands spread over 3.5 d o n km2in central a n d western Pacific. I t s popul ati on will increase by 40% by 2025 a n d i t has l i rmte d agricultural resources, i t s m a i n resources b e i n g i t s fish reserves. I G r i b a t i i s one of t he most vulnerable countries of the world to climate change a n d sea level rise, most of the l a n d b e i n g less t h a n 3 meters above sea level. 170. I t s env i ro n me n t i s threatened in m a n y ways: erosion of the sea shores, destruction of mangroves, diminution o f fresh water resources, i m p r o p e r publ i c a n d private building to prevent disasters, low preservation of f i s h a n d coral biodiversity. 171. T h e pr o j e c t aims at: (i) developing a n d demonstrating the systematic diagnosis o f climate-related problems, (ii) designmg cost-effective adaptation measures, (iii) conti nui ng the integration o f climate risk awareness a n d responsiveness into economic and operational planning. 172. T h e projects includes fi v e complementary components: (1) “Policy, pl anni ng a n d i nformati on ” to raise awareness, carry out consultation a n d p l a n p o p u l a t i o n resettlement, whenever necessary, (2) “Land use, physical structures a n d ecosystems” to reduce the vulnerability o f the sea-shore a n d key public assets by developing a risk mi tigati on strategy, (3) “fresh water resources” to reduce t he vulnerability o f fresh water resources to climate change, i n c l u d m g a n additional assessment o f water resources in O u t e r Islands, (4) “Capacity bulldmg at island a n d c o m m u n i t y level” to trai n local gov er nm ent on climate risk management a n d support small scale participatory projects i mpl ement ed by beneficiaries, a n d (6) “Program management” with t h e establishment o f a PMU close to the O f f i c e o f t he President.

Comments 173. T h e pr o j e c t appears relevant to address the critical c h a t e issues that the country has to face through a consistent adaptation program. 174. T h e pr o j e c t starts from a previous proj ect carried out by the Word Bank; it demonstrates a good understanding of th e specific environment issues o f t h i s kmd o f low lying islands with a growing population. T h e p ro p o s e d components c ompl ement each others starting by a better understanding o f the present environmental situation a n d i t s hkely m e d i u m a n d long t e r m evol uti on to m a k e aware polic y makers a n d l o c a l populations, t h e n designing a practical strategy to protect the sea-shore a n d nearby waters. I t includes a preparation to avoi d future disasters attached to i m p r o p e r seashore p u b l i c a n d private building a n d a series of l o c a l envi ronment projects involving the l ocal population. 175. T h e pr o j e c t appears w e l l designed with i t s p r o j e c t management unit (PMU) installed close to t h e President O f f i c e within th e N a t i o n a l Strategic Risk Management Unit a n d regular l i n k s with t h e operational ministries have b e e n planned to select jointly t h e adaptation projects to b e financed.

176. T h e government i s supportive o f the project a n d has demonstrated during i t s last 10 years i t s c o m m i t m e n t to climate adaptation policies. A n o t h e r positive point i s the s i p f i c a n t financial support p r o v i d e d by N e w Zealand a n d Australia as w e l l as the continuity o f the i n v o l v e m e n t o f the World Bank. 177. Actually, t h e project m a y seem a bit oversized for a very small country but w e have to consider that i t has a large replication potential in other Pacific or I n d i a n Ocean islands a n d that the tools a n d solutions developed in t h i s small state are likely to serve as a reference on adaptation policies to m a n y other locations. A specific budget for capitalization a n d dissemination o f t h e experience outside I G r i b a t i has b e e n consequently foreseen. 178. T h e cost o f t h e project must b e balanced in front o f the economic cost o f t h e “no action” option that w d lead to m a j o r economic losses for the country (such as decrease o f fishing activity a n d agricultural production, loss of land, destruction o f public and private buildings, diminution of fresh water resources, l o s s o f biodiversity, etc.).

179. A World B a n k funded study in 2000 indicated that in the absence of adaptation, the i m p a c t of climate change scenarios on I G r i b a t i m a y lead to the l o s s o f 25% to 55% o f t h e l a n d surface in m a j o r islands a n d to a 20 to 40% decrease o f the fresh water lens in Tarawa. T h i s continued degradation was estimated to result to a n economic damage averaging 17 to 34% o f 1998 GDP.

COMMENTS FROM GERlMANy Comments

180. There i s no doubt, that I G r i b a t i i s o n e o f the most vulnerable countries in t h e world to climate

change a n d sea level rise. T h e project proposal describes a number of useful measures, e.g. the protection, rehabilitation a n d management o f mangroves. However, it does not clearly address the threat that by 2050 large areas (up to 25-54 O/o o f areas in Bikenibeu, South Tarawa a n d 55-80 O/o o f Bairiki, North Tarawa), could become inundated a n d how the project would address this, taking into account the expected population increase. I t i s also not clearly described, how i t wdl b e judged whether the proposed measures are really cost-effective. U n d e r “Objectives”, apart from reduced v u l n e r a b h t y to climate change, i t i s mentioned, that climate variabihty a n d sea level rise could also be reduced. I t appears to b e unrealistic for small islands to really have a n i m p a c t on this. T h e indicators are still vague and need to be refined. Most o f t h e m describe t h e m e r e activities a n d not the measurable impact, w h i c h should b e acheved.

Recommendation

181. T a k m g into account the above comments, G e r m a n y supports the proposal. Changes should b e made during further planning steps a n d project implementation. ResDonses to the questions:

1). I f sea level rise does continue along t h e h e s o f t h e current worst-case scenarios, I G r i b a t i m a y have to consider other options than the ones implemented under IWP-11. H o w e v e r , given the current

uncertainties regarding how m u c h sea level rise there will b e a n d how t h e islands’ ecology a n d morphology will respond to such changes, i t i s not appropriate for I U P - I 1 to address that situation duectly (by moving people, w h i c h would b e highly socially dsruptive, a n d / o r structural coastal protection along the entire island, w h i c h would b e prohibitively expensive a n d v e r y damaging to t h e environment).

In any case, these threats are long-term. T h e strategy in Kiribati, in line with regional a n d international guidance, has b e e n to h k t h i s agenda to immedlate threats that are causing problems right now, but also contribute to reducing vulnerability over time. I U P - I 1 contains several such no-regrets initiatives, w h i c h wdl also h e l p reduce the long-term threat o f inundation. For instance: 0

the coastal component i s promoting integrated coastal management, w h i c h will facilitate a better choice o f options for coastal protection, w h i c h will on the one h a n d p r o t e c t vulnerable pieces o f coastline, a n d on the other h a n d help to keep t h e natural beaches healthy (which might b e able to help accommodate some sea level rise); the regulation o f beach mining i s a crucial aspect, w h i c h will also h e l p to reduce both longa n d short-term threats; a n d furthermore, w e do include a subcomponent on p o p u l a t i o n policy, w h i c h might include encouraging people to m o v e away from the most vulnerable a n d overpopulated parts o f Tarawa (the m a i n island, for w h i c h the study was done).

These short-to-medium-term no-regrets strategies for good coastal p r o t e c t i o n will b e c o m b i n e d with strateglc thinking about potential long-term options (which might eventually include relocation). Such thinking processes, including at the community level, will require a long t i m e a n d should not b e hurried.

2) I t i s also not clearly described, how it will b e judged whether the proposed measures are really cost-effective.

Cost-effectiveness o f t h e various activities would b e developed a n d decided on during the options analyses to b e carried out at feasibllity stage, a n d planned for a l l m a j o r work, such as the roads a n d hospital rehabilitation. In addition, the PAD, a n d the project Operations M a n u a l specifically make m e n t i o n that the technical specialists who would b e carrying out t h e cost-benefit options analyses must do t h i s in collaboration with the Ministry of Finance a n d E c o n o m i c D e v e l o p m e n t (MFED), who have a strong vested interest in ensuring cost-effectiveness, particularly g i v e n that the options used would b e examined for replication on a wider scale. In addition, ensuring cost-effectiveness i s a n underlying principle for t h e project - w h i c h advocates for a no-regrets strategy compared to the potentially higher p r o f i l e a n d m o r e catchy option involving high cost infrastructure. This strategy, as i s explained in Section 5 of the PAD: Mainstreaming into the Ministry Operational Plans has been one o f the reasons for the slow integration o f the I U P activities in t h e Ministry Operations Plans, by the implementing Ministries. A d d i t i o n a l detail on the importance o f cost-effectiveness o f the project i s included in A n n e x 14 o f the P A D : Incremental Cost and Economic Analysis.

3) Under “Objectives”, apart from reduced vulnerability to climate change, it i s mentioned, that climate variability and sea level rise could also be reduced. I t appears to b e unrealistic for small islands to really have an impact on this.

Ths i s probably a misunderstanding. T h e idea i s to “reduce vulnerability to climate change, climate variabhty, a n d sea level rise. W h i l e it c o u l d b e read as such, the p r o j e c t does not i n t e n d to reduce sea level rise or reduce climate variability, but to reduce vulnerabihty to climate change, vulnerability to climate variability a n d vulnerabihty to sea level rise.

4) T h e indicators are still vague and need to b e refined. M o s t of them describe the mere activities and not the measurable impact, which should be achieved.

’

W e have m a d e s o me changes to the indicators to take t h l s issue into account.

H ow ever, i t i s

i m p o r t a n t to c l a ri fy that the indlcators that are bei ng used are modest, because o f t h e pilot natu re of t h e p r o j e c t a n d t h e short implementation phase o f the project. Significant efforts are b e i n g put towards c han g i n g attitudes o f a l l stakeholders a n d starting up a few investments on a pilot phase. I f t h e p r o j e c t i s able to cement p l a n n i n g on a w hol e of government approach, as w e l l as get attitudes o f t he k ey stakeholders to m o r e systematically think o f the impacts o f carrying on with some o f t he detrimental activities, a n d accepting that there are better ways to achieving a result, t h e n that would indeed b e a great step fo rw a rd for I h i b a t i . In that context, the indicators p r o v i d e a n i m p o r t a n t lmkage to t h e eventual outcomes o f the project, through the integration o f risk management into t he development p l a n n i n g a n d implementation of programs in a l l c h a t e - a f f e c t e d sectors within t he G o v e r n m e n t o f I G r i b a t i (GoIC). For instance, the second outcome indicator â&#x20AC;&#x153;percentage of climateaffected MOP p ro g ra m s that reflect systematic clunate risk managementâ&#x20AC;? provides a link to t he Ministry O pe r a ti o n a l P l a n (MOP) p l a n n i ng and monitoring arrangements o f t h e GoI< itself. I f climate risk management i s i n d e e d reflected in the key MOPS,the monitoring o f real proj ect outcom es i s transferred from t h e I U P project into the pl anni ng a n d monitoring system o f t h e GoIC, with specific i n d x a t o r s t h a t m a y go b e y o n d w h a t th e project can currently envisage. T h e present results indlcators are m ainly i n t e n d e d to monitor th e process of getting to that situation of havi ng sufficient awareness a n d capacity to achieve the broader objective of reduci ng Kiribatiâ&#x20AC;&#x2122;s vulnerabllity to climate change, climate variability a n d sea level rise.

100

170°E

180°

170°W

160°W

This map was produced by the Map Design Unit of The World Bank. The boundaries, colors, denominations and any other information shown on this map do not imply, on the part of The World Bank Group, any judgment on the legal status of any territory, or any endorsement or acceptance of such boundaries.

10°N

Monday Sunday

M AR S H ALL I S LAND S

PACIFIC

OCEAN

Kingman Reef (U.S.) Palmyra Atoll (U.S.) Teraina Tabuaeran (Fanning I.)

Makin Butaritari Marakei

Abaiang

TARAWA

Maiana Abemama Kuria Aranuka

NA U R U

0°

Banaba (Ocean Island)

Nonouti Tabiteuea

Gilbert Islands

0°

Jarvis I. (U.S.)

Phoenix Islands

Beru

Nikunau Onotoa

Tamana

Kiritimati (Christmas I.)

Howland I. (U.S.) Baker I. (U.S.)

Arorae

Kanton McKean Nikumaroro

Birnie Orona

Line Islands

Enderbury Rawaki

Malden

Manra Starbuck

K I R I B A T I SO LOM ON I S L AN D S

TU VALU

Tokelau (N.Z.) Vostok

Wallis and Futuna Islands (France)

VA N UAT U

SAMOA

Cook Islands (N.Z.)

Millenium

10°S

Flint

American Samoa (U.S.) KIRIBATI

170°E

20°S

NATIONAL CAPITAL 180°

400 Kilometers

200

20°S 0 170°W

100

200

300

400 Miles 160°W

150°W

IBRD 33427

FEBRUARY 2005

International

T O NGA Date Line

KIRIBAT I

FIJI