Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD686 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED TRUST FUND GRANT FROM THE STRATEGIC CLIMATE FUND (SCF) – PILOT PROGRAM FOR CLIMATE RESILIENCE (PPCR) IN THE AMOUNT OF US$14.6 MILLION TO THE INDEPENDENT STATE OF SAMOA FOR AN ENHANCING THE CLIMATE RESILIENCE OF COASTAL RESOURCES AND COMMUNITIES PROJECT November 15, 2013 Timor Leste, Papua New Guinea and Pacific Islands Country Department Sustainable Development Department East and Asia Pacific Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Exchange Rate Effective, October 3, 2013 Currency Unit = Samoan Tala 2.4 Tala = US$1 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AF Adaptation Fund CBA Cost-Benefit Analysis CBS Central Bank of Samoa CEP Community Engagement Plan CIF Climate Investment Fund CIM Coastal Infrastructure Management CPEIR Climate Public Expenditure and Institutional Review CPS Country Partnership Strategy CRICU Climate Resilience Investment Coordination Unit CRIP Climate Resilience Investment Program CSIRO Commonwealth Scientific and Industrial Research Organization CSO Civil Society Organization CSSP Civil Society Support Program DA Designated Account DLA Damage and Loss Assessment DRM Disaster Risk Management DRR Disaster Risk Reduction EACC Economics of Adaptation to Climate Change ECR Enhancing the Climate Resilience of Coastal Resources and Communities EMP Environmental Management Plan EWS Early Warning System GCM Global Climate Model IAMP Infrastructure Asset Management Project IPF Investment Project Financing LARF Land Acquisition and Resettlement Framework LDC Least Developed Country LDCF Least Developed Country Fund LiDAR Light Detection and Ranging LTA Land Transport Authority MAF Ministry of Agriculture and Fisheries MNRE Ministry of Natural Resources and Environment MOF Ministry of Finance MWCSD Ministry of Women, Community and Social Development NAPA National Adaptation Plan of Action NCAR National Center for Atmospheric Research NSCRS National Strategy for a Climate-Resilient Samoa NZAP New Zealand Aid Program OM Operations Manual PCRAFI Pacific Catastrophic Risk Assessment and Financing PDNA Post-Disaster Needs Assessment PMU Program Management Unit PPCR Pilot Program for Climate Resilience PUMA Planning and Urban Management Agency RAP Resettlement Action Plan SCF Strategic Climate Fund SDS Strategy for the Development of Samoa SIAM Samoa Infrastructure Asset Management Project SNC Second National Communication SPCR Strategic Program for Climate Resilience UNFCCC United Nations Framework Convention on Climate Change V&A Vulnerability and Adaptation Regional Vice President: Axel van Trotsenburg Country Director: Franz Drees-Gross Sector Director: John Roome Sector Manager: Michel Kerf Task Team Leader: Samuel Wedderburn INDEPENDENT STATE OF SAMOA Enhancing the Climate Resilience of Coastal Resources and Communities TABLE OF CONTENTS Page I.  STRATEGIC CONTEXT .................................................................................................1  A.  Country Context ............................................................................................................ 1  B.  Sectoral and Institutional Context................................................................................. 1  C.  Higher-Level Objectives to Which the Project Contributes ......................................... 5  II.  PROJECT DEVELOPMENT OBJECTIVE ..................................................................6  A.  PDO............................................................................................................................... 6  B.  Project Beneficiaries ..................................................................................................... 6  C.  PDO-Level Results Indicators ...................................................................................... 6  III.  PROJECT DESCRIPTION ..............................................................................................6  A.  Project Components ...................................................................................................... 6  B.  Project Financing .......................................................................................................... 9  C.  Project Cost and Financing ........................................................................................... 9  IV.  IMPLEMENTATION .....................................................................................................11  A.  Institutional and Implementation Arrangements ........................................................ 11  B.  Results Monitoring and Evaluation ............................................................................ 13  C.  Sustainability............................................................................................................... 14  V.  KEY RISKS AND MITIGATION MEASURES ..........................................................14  A.  Risk Ratings Summary Table ..................................................................................... 14  B.  Overall Risk Rating Explanation ................................................................................ 15  VI.  APPRAISAL SUMMARY ..............................................................................................15  A.  Economic and Financial Analysis ............................................................................... 15  B.  Technical ..................................................................................................................... 17  C.  Financial Management ................................................................................................ 18  D.  Procurement ................................................................................................................ 19  E.  Social (including Safeguards) ..................................................................................... 19  F.  Environment (including Safeguards) .......................................................................... 21  Annex 1: Results Framework and Monitoring .........................................................................23  Annex 2: Detailed Project Description .......................................................................................28  Annex 3: Implementation Arrangements ..................................................................................39  Annex 4: Operational Risk Assessment Framework (ORAF) .................................................58  Annex 5: Implementation Support Plan ....................................................................................64  Annex 6: Economic and Financial Analysis ..............................................................................67  MAP ............................................................................................................................................77  . PAD DATA SHEET Independent State of Samoa Enhancing the Climate Resilience of Coastal Resources and Communities (P126596) PROJECT APPRAISAL DOCUMENT . EAST ASIA AND PACIFIC EASNS Report No.: PAD686 . Basic Information Project ID Lending Instrument EA Category Team Leader P126596 Investment Project B - Partial Assessment Samuel G. Wedderburn Financing Project Implementation Start Date Project Implementation End Date 31-Jan-2014 31-Dec-2018 Expected Effectiveness Date Expected Closing Date 30-Apr-2014 31-Dec-2018 Joint IFC No Sector Manager Sector Director Country Director Regional Vice President Michel Kerf John A. Roome Franz R. Drees-Gross Axel van Trotsenburg . Borrower: Ministry of Finance . Approval Authority Approval Authority Board/AOB Decision . Project Financing Data(in USD Million) [ ] Loan [ ] Grant [X] Other [ ] Credit [ ] Guarantee Total Project Cost: 14.60 Total Bank Financing: 0.00 Financing Gap: 0.00 . i Financing Source Amount Borrower 0.00 Strategic Climate Fund Grant 14.60 Total 14.60 . Expected Disbursements (in USD Million) Fiscal 2014 2015 2016 2017 2018 2019 Year Annual 0.00 2.86 3.21 3.19 2.73 2.61 Cumulati 0.00 2.86 6.07 9.26 11.99 14.60 ve . Proposed Development Objective(s) The project development objective is to support coastal communities to become more resilient to climate variability and change. . Components Component Name Cost (USD Millions) Implementation of Priority Adaptation Measures to Manage 10.20 Climate and Disaster-related Threats Strengthened Climate Information Services 1.50 Institutional strengthening for climate and disaster resilience, 2.90 project coordination and monitoring . Institutional Data Sector Board Environment . Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co-benefits % Co-benefits % Agriculture, fishing, and forestry General agriculture, 100 100 fishing and forestry sector Total 100 I certify that there is no Adaptation and Mitigation Climate Change Co-benefits information ii applicable to this project. . Themes Theme (Maximum 5 and total % must equal 100) Major theme Theme % Environment and natural resources Climate change 100 management Total 100 . Compliance Policy Does the project depart from the CAS in content or in other significant Yes [ ] No [ X ] respects? . Does the project require any waivers of Bank policies? Yes [ ] No [ X ] Have these been approved by Bank management? Yes [ ] No [ ] Is approval for any policy waiver sought from the Board? Yes [ ] No [ X ] Does the project meet the Regional criteria for readiness for implementation? Yes [ X ] No [ ] . Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 X Natural Habitats OP/BP 4.04 X Forests OP/BP 4.36 X Pest Management OP 4.09 X Physical Cultural Resources OP/BP 4.11 X Indigenous Peoples OP/BP 4.10 X Involuntary Resettlement OP/BP 4.12 X Safety of Dams OP/BP 4.37 X Projects on International Waterways OP/BP 7.50 X Projects in Disputed Areas OP/BP 7.60 X . Legal Covenants Name Recurrent Due Date Frequency Community Engagement Plan Six months after Grant signing iii Description of Covenant The Recipient shall prepare, under terms of reference satisfactory to the World Bank, and furnish to the World Bank, a plan containing detailed guidelines and procedures for the implementation of the Project at community level, including arrangements for community procurement, eligibility and selection criteria for Beneficiaries. Name Recurrent Due Date Frequency Sub-projects X Monthly Description of Covenant Under Part 1(b) of the Project, the Recipient shall provide Sub-grants to Beneficiaries to implement Sub- projects in accordance with eligibility criteria and procedures acceptable to the World Bank and specified in the Community Engagement Plan once said Plan has been accepted by the World Bank. ok. Conditions Name Type Description of Condition Team Composition Bank Staff Name Title Specialization Unit Samuel G. Wedderburn Sr. Natural Resources Team Lead EASER Mgmt. Spec. Miriam Witana Procurement Specialist Procurement Specialist EASR1 Habiba Gitay Senior Environmental Senior Environmental CPFPT Specialist Specialist Marjorie Mpundu Senior Counsel Senior Counsel LEGES Victoria Florian S. Operations Officer Operations Officer EASPS Lazaro Gerardo F. Parco Senior Operations Operations Officer EASPS Officer Stephen Paul Hartung Financial Management Financial Management EASFM Specialist Specialist R. Cynthia Dharmajaya Program Assistant Program Assistant EASER Nathan Hale Program Assistant Program Assistant EACNF Robert J. Gilfoyle Sr Financial Sr Financial EASFM iv Management Specialist Management Specialist Michael Bonte- Disaster Risk Disaster Risk EASNS Grapentin Management Specialist Management Specialist Non Bank Staff Name Title Office Phone City William Cuddihy Consultant Douglas Forno Institutional Specialist Cairns, Australia Andrew K. Hurd Coastal Resources Bangkok, Thailand Management Specialist Beverly Ann Mclean Social Safeguards Wellington, New Consultant Zealand Chris Manu Coastal Engineer Bangkok, Thailand Ursula Kaly Coastal Ecologist . Locations Country First Location Planned Actual Comments Administrative Division v I. STRATEGIC CONTEXT A. Country Context 1. The Independent State of Samoa (Samoa) is a small and remote island economy comprising four inhabited islands with a population of about 187,000 (2011 Census). It is one of the world’s 48 Least Developed Countries (LDCs), with a GDP per capita of around US$2,900 (2011). Although Samoa’s economic performance has been well above the average for comparable island countries, “…its small size, limited natural resources, narrowly based economy, distance to major markets, and vulnerability to exogenous shocks, impose speed limits on growth and have led to a high degree of volatility in recent economic performance” (Country Partnership Strategy 2012). 2. Seventy per cent of Samoa’s population lives within 1 km of the coast, and critical infrastructure (hospitals, schools, port facilities, power plants, airports, tourist infrastructure) is also located in this zone. Approximately 80 percent of the 403 km coastline is sensitive or highly sensitive to erosion, flooding or landslides; thus weather and climate-related extreme events (tropical cyclones, storm surges, droughts) and natural disasters threaten Samoa’s development. Rapid economic and urban growth is predominantly in coastal areas, further increasing the exposure of people and assets to climate-related hazards. Impacts of tropical cyclones are of immediate and ongoing concern, as they exacerbate coastal erosion; endanger life and well- being, and adversely impact infrastructure, agriculture, reefs, fishing and tourism. B. Sectoral and Institutional Context 3. The expected effects of climate variability and change on Samoa include more frequent and heavy rainfall events, increasingly lengthy dry spells, recurring drought events, hotter days, rising sea levels, extreme winds and extreme high air and water temperatures (Climate Risk Profile 2007, referenced in the Second National Communication to UNFCCC 2009). Projections of changes in Samoa’s climate indicate that by 2050, the sea level is likely to have increased by 360 mm, annual average rainfall by 1 percent, extreme wind gusts by 7 percent, and maximum ambient surface temperatures by 0.7 ºC. The observed long-term trend in relative sea level for the capital city, Apia, is 5.2mm/yr., and the maximum sea level is increasing by approximately 8 mm/yr., a rate far in excess of the observed local and global trends in mean sea level. 4. The Economics of Adaptation to Climate Change (EACC) country study for Samoa1 used projections of climate variables downscaled from the results of the two (NCAR and CSIRO) global climate models (GCMs).2 The temperature is projected to rise by 0.8 to 1°C by 2050. The projections for rainfall are more variable but show some consistency in seasonal distribution, with the dry season becoming drier and the transitional months of the wet season becoming wetter. The EACC study drew two inferences from the Global Wet and Dry Scenarios: (a) the 1 Economics of Adaptation to Climate Change, World Bank 2011. 2 Ibid. 1 severity – and perhaps the frequency – of El Nino-like droughts is likely to increase, especially under the Global Wet scenario; and (b) the severity (wind speeds) of major cyclones may increase and the return periods of the most damaging cyclones may decrease, leading to a significant increase in the average damage caused by cyclones that hit Samoa. 5. A key lesson from the EACC study is that extreme weather variability in the coastal zone is likely to lead to large costs, whether they be in the form of hard coastal protection measures and continued road (and other infrastructure) replacement, or the costs associated with relocation of critical infrastructure and even entire villages. This lesson was brought into sharp focus by Cyclone Evan, which struck Samoa in December 2012 with devastating results. The impacts were severe, with flooding along the Vaisigano River killing at least five people, temporarily displacing 7,500, damaging more than 2,000 houses, and leaving more than 600 unsafe for habitation. Evan also caused severe damage to the power plant, cutting power for all of Samoa for weeks and disrupting communication services and water facilities. Strong winds destroyed crops, trees, buildings and roads. 6. A Post-Disaster Needs Assessment (PDNA3) was undertaken by the Government of Samoa with support from the World Bank, the UN, and other partners. The Damage and Loss Assessment (DLA) estimated total losses at US$210 million, or about 30 percent of annual GDP. Recovery, reconstruction and disaster risk reduction (DRR) needs were assessed at US$200 million, and human resources needs at US$70 million. Furthermore, the impact of the cyclone is expected to reduce growth in calendar year 2013 from a pre-cyclone forecast of 2 percent to 0.9 percent. A central recommendation of the Human/Social Impact Assessment chapter of the PDNA was the need to mobilize communities and villages to more effectively prepare for and manage the risks of natural hazards and climate variability and change. 7. While the Government has shown a strong commitment to addressing climate variability and change and disaster preparedness and response, the legal, policy and regulatory framework remains sectoral and disjointed in nature. The National Climate Change Policy is being updated, and preparation of a draft National Climate Change Plan and Program was supported under the first Pilot Program for Climate Resilience (PPCR) grant, but a more robust policy that addresses climate change mitigation, climate change adaptation and disaster risk reduction needs to be developed under a single framework. Resilience to climate variability and change and natural disasters could then be integrated into the policies, regulations and operations of key sectors, including agriculture, transport, health and tourism. Better information flow at the national level, and coordination between the national and local levels, would assist all agencies and communities to incorporate risk assessment and planning into their operations and activities. 8. The National Climate Change Country Team (NCCCT), established in 1995, provides coordination of climate-related activities. This covers initiatives funded by donors as well as 3 http://www.gfdrr.org/sites/gfdrr.org/files/SAMOA_PDNA_Cyclone_Evan_2012.pdf. 2 through the national budget. Key members of the NCCCT are the Chief Executive Officers of relevant government ministries and representatives of civil society and the private sector. The Ministry of Finance coordinates the flow of, and accountability for, financial resources, while the Ministry of Foreign Affairs coordinates interactions with the United Nations Framework Convention on Climate Change (UNFCCC) and other international and regional institutions. Samoa signed the Convention in 1992. The Ministry of Natural Resources and Environment (MNRE) is responsible for developing the key policy and planning documents that guide climate change programs in Samoa. The MNRE is the agency responsible for the overall oversight of the implementation of Samoa‘s adaptation activities. Implementation is carried out by relevant ministries. The MNRE also plays a major role in developing strategies and policies and coordinating adaptation measures. Other key Government agencies include the Ministry of Health, the Ministry of Agriculture and Fisheries, the Samoa Water Authority (SWA), Ministry of Works, Transport and Infrastructure (MWTI) and the Electric Power Corporation (EPC). 9. Awareness and capacity for disaster and climate risk management at all levels is weak due to limited resources and skills base, as highlighted by the National Progress Report on the Implementation of the Hyogo Framework for Action (2011-2013) and the Situation Analysis conducted during PPCR Phase 1. Responsible designated agencies, institutions and offices at the local level do not have the capacity to enforce risk reduction regulations; and local institutions, village communities, volunteers and urban resident welfare associations are not properly trained. Many of the capacity-building initiatives in Samoa have targeted agencies at the national level. However, civil society organizations (CSOs) could play an important role in liaising with village-level structures, and have the potential to deliver awareness raising and capacity development activities at the local level and support local implementation of national adaptation/DRM activities. 10. The Government’s efforts to reduce the climate-related vulnerability of coastal infrastructure began with a World Bank-supported program in 1999 that aimed to develop a strategy for participatory management of coastal infrastructure which integrated environmental and storm hazard considerations, priority investments in coastal protection, and the updating of information and maps. Through the Samoa Infrastructure Asset Management Project (SIAM) I and II, a Coastal Infrastructure Management (CIM) Strategy – a national-level policy – was developed, and CIM Plans were prepared for each of the 41 districts (283 villages) in the country. These plans have the potential to be transformational in that they assess, for the first time, the resilience of coastal infrastructure to flooding, coastal erosion and landslides. They also identify potential solutions and assign responsibility for implementation. To date, very few CIM Plans have been implemented, mainly due to financial and capacity constraints. The Bank- funded EACC study, which analyzed the status of adaptation action, recommended (a) a review and updating of the CIM Plans and a program for undertaking them and in the longer term; and (b) consideration and discussion of relocation of key assets out of hazard zones. 11. A number of documents and strategies have called for interventions on climate change adaptation and disaster risk management in Samoa: 3  The National Adaptation Plan of Action (NAPA) of 2005 provides the overall framework for identifying, prioritizing and supporting adaptation work in Samoa.  The Strategy for the Development of Samoa (SDS) for 2012-2016 also identifies climate change adaptation as one of the goals for the coming planning cycle.  The Draft National Strategy for a Climate Resilient Samoa (NSCRS) of August 2012 addressed the need to integrate resilience across all identified priority areas. As almost all sectors are affected by climate change, the draft report recommends an “overarching focus on resilience across all priority areas and integral to all key sector-based outcomes” in the next SDS.  A similar view, although focusing more on disaster risk reduction, is suggested in the Samoa National Action Plan for Disaster Risk Management 2011-2016.  All sector plans call for proper coordination of effort and ownership by sector agencies, to be reflected in agency budget commitments.  The recent Climate Public Expenditure and Institutional Review (CPEIR) all of these findings and recommendations. 12. Donors have responded to these needs with a number of initiatives, including the Pilot Program for Climate Resilience (PPCR), which is a Multi-Donor Trust Fund under the Strategic Climate Fund (SCF) of the Climate Investment Funds (CIF). The first phase of the PPCR, which ended in March 2013, supported the preparation of five analytical studies, including a Situation Analysis of policies and institutions involved in climate change adaptation and disaster risk reduction, and a Capacity Assessment of CSOs. It also supported preparation of Samoa’s Strategic Program for Climate Resilience (SPCR), known in Samoa as the Climate Resilience Investment Program (CRIP), which identified the need for the proposed project4 – Enhancing the Climate Resilience of Coastal Resources and Communities (ECR). This project will be supported under the second phase of the PPCR.5 13. The proposed project strongly supports and is consistent with the PPCR objective of piloting and demonstrating transformational ways to integrate climate risk and resilience into core development planning, while complementing other ongoing activities. PPCR Phase I encouraged the GoS to change the focus from infrastructure to more integrated community planning, to enable the CIM Plan approach to build on the governance and decision-making functions embedded within traditional community structures. The move towards community-led implementation of the CIM Plans, both in inland and in coastal communities, is aimed at combining environmental, social and economic responses to changing climate, in order to produce sustainable and transformative changes in the ways Samoans interact with their environment. An approach that combines enhancing social capital and skills, using CSOs to fast- 4 With PPCR support, the CRIP was developed as a broad-based strategy for achieving climate resilience at the national level in the medium and longer term, using as its basis the Strategy for the Development of Samoa, the NAPA, and other policy and planning instruments. The CRIP identified key challenges related to vulnerability to climate change and variability, notably the damaging effects of floods, strong winds, high seas, coral bleaching and droughts, all of which are having major impacts on lives and livelihoods, and are delaying Samoa’s progress toward achieving the Millennium Development Goals. 5 Phase 2 of the PPCR is also supporting another project identified in the CRIP, Enhancing the Climate Resilience of the West Coast Road, effective since March 2013. 4 track implementation and provide continued support to communities, will contribute to enhancing the climate resilience of communities over the short and longer term. 14. The proposed project would also complement the multiple ongoing and planned climate resilience projects in Samoa,6 and improve coordination among them through an M&E framework at the programmatic level. The ECR would also support updating and implementation of CIM Plans7; as well as development of a process to consider climate-related risks to key assets and communities, and options to reduce those risks. C. Higher-Level Objectives to Which the Project Contributes 15. The proposed ECR project supports the Government of Samoa’s Strategy for the Development of Samoa (SDS) 2012-2016, which focuses on strengthening economic resilience and encouraging inclusive growth. Two key pillars of the strategy are to strengthen climate resilience of the country as a whole (Priority Area 4, Key Outcome 14), and enhance the resilience of communities to the impact of climate change and natural disasters (Priority Area 2, Key Outcome 8.2).8 The ECR project also supports the higher-level objectives identified in Samoa’s CRIP; namely, (a) to pilot interventions that represent scaled-up action and deliver transformational change in how climate-related risks are managed in Samoa; and (b) to promote a longer-term, programmatic approach that integrates considerations of climate resilience in national development planning and implementation in ways that are consistent with national poverty reduction and sustainable development goals. 16. The ECR project is one of the proposed investments included in the Country Partnership Strategy (CPS) for Samoa 2012, one of the main themes of which is building resilience to natural disasters and climate change. The project will build on the Bank’s successful engagement since 1999 in supporting disaster mitigation and rehabilitation in the country. It is consistent with the Bank’s broader approach among the small and remote Pacific Island Countries, and responds to the need for immediate action to reduce disaster risks and the threat 6 Other ongoing or planned climate resilience projects in Samoa include:  an Early Warning System (EWS) enhancement project, supported by New Zealand Aid Program (NZAP);  the Enhancing Resilience of Samoa’s Coastal Communities project, supported by UNDP and the Adaptation Fund (UNDP-AF) and leveraged with PPCR funding;  the Economy-wide Integration of Climate Change Adaptation and DRM/DRR project, supported by GEF/Least Develop Country Fund (LDCF)/UNDP and leveraged with PPCR funding; this project will address the gaps identified in the PPCR Phase 1 Situation Analysis report by supporting the mainstreaming of climate change adaptation and DRM in national policy frameworks and development planning.  the Agriculture and Fisheries Cyclone Response Project, an emergency response operation supported by the World Bank. 7 The UNDP-Adaptation Fund project will also support updating and implementation of CIM Plans in the 25 districts not covered by the ECR. 8 The Government’s recent shift in focus from infrastructure to more integrated community planning, encouraged by Phase 1 of the PPCR, makes the CIM Plan approach even more innovative and relevant than originally envisioned. With its local governance and decision making embedded within traditional community structures, Samoa’s move towards a move towards community-led implementation of CIM Plans in both inland and coastal communities, using CSOs to fast track environmental, social and economic responses to a changing climate, has the potential to produce sustainable and transformative changes in the country’s level of climate resilience. 5 of climate change, as articulated in the Policy and Practice Note for Climate and Disaster Resilient Development for the Pacific Region (2012). The proposed project will build on the Bank’s accumulated years of experience with climate change adaptation in Samoa and other countries in the region, including Kiribati and Vanuatu. II. PROJECT DEVELOPMENT OBJECTIVE A. PDO 17. The project development objective is to support coastal communities to become more resilient to climate variability and change. B. Project Beneficiaries 18. The project would directly benefit at least 50 percent of 89,300 people in the 16 targeted districts (which include the 8 districts participating in the World Bank/PPCR-supported West Coast Road project). Local CSOs would receive information and training on climate and disaster risk management, and the CSOs would in turn train residents in the 16 districts. The agencies participating in implementation will also develop stronger capacity to manage climate risk. These include, in addition to MNRE, the Ministry of Finance (MOF); the Ministry of Agriculture and Fisheries (MAF); the Ministry of Women, Community and Social Development (MWCSD); the Ministry of Works, Transport and Infrastructure (MWTI); the Samoa Water Authority (SWA); and the Land Transport Authority (LTA). C. PDO-Level Results Indicators 19. Achievement of the development objective will be assessed through the following indicators:  Number of direct project beneficiaries, with a separate sub-indicator for women;  Percentage of sub-projects with climate/disaster resilience satisfactorily implemented, based on a scoring system;  Areas restored or reforested to combat coastal erosion, siltation, and run-off damage to reefs, with sub-indicators for different types of vegetation. III. PROJECT DESCRIPTION A. Project Components 20. The proposed project will develop and implement immediate and urgent activities to: (a) assist the population of Samoa in adapting to climate variability and climate change; (b) protect people’s lives and livelihoods, coastal and inland infrastructure, and the environment; and (c) 6 increase awareness of climate change impacts and adaptation activities in communities, civil society and local government. The project will promote a broad ecosystem-based approach that recognizes the importance of functioning ecosystems for enhancing communities’ resilience to climate-related impacts and that manages risks through green or nature-based approaches and interventions that can be combined with hard infrastructure where necessary. The project will therefore be concerned with all natural hazards rather than just coastal-associated hazards, and look to assess vulnerabilities and solutions on a ridge-to-reef basis, recognizing the fundamental link between processes occurring in different parts of the catchment. The project’s three components are summarized below and further detailed in Annex 2. Component 1: Implementation of Priority Adaptation Measures to Manage Climate and Disaster-related Threats (US$10.2m) 21. This component will support a program of activities designed to strengthen the adaptive capacity of communities, and increase the resilience of coastlines, near-shore areas, and coral reefs (including the productivity of reef ecosystems) to climate change risks. It will support the implementation of priority community adaptation measures derived from revised Coastal Infrastructure Management (CIM) Plans9 and other community planning frameworks to include: a) Sub-component 1: Participatory Prioritization of Disaster Risks and Adaptation Options (US$0.8m). In the 16 targeted districts, updating CIM Plans through a participatory process to include, inter-alia, integration with other management plans such as Disaster Risk Management, Village Sustainable Development, and Watershed Management. Adaptation options will be prioritized, and sub-projects aimed at strengthening resilience will be prepared. Experienced CSOs, together with technical specialists from line agencies, will provide facilitation and undertake vulnerability and adaptation (V&A) assessments, utilizing the latest data (including data to be generated under Component 2.2) and innovative approaches to assist communities in identifying climate risks and appropriate responses. b) Sub-component 2: Sub-grants for implementing priority climate resilience measures (US$9.4m). This sub-component will provide sub-grants to finance implementation of eligible subprojects prepared under sub-component 1 above. Small grants of up to WST$50,000 (US$22,720) will be provided directly to community groups for village-level projects through the existing Civil Society Support Program,10 in accordance with the provisions of a Community Engagement Plan (described under component 2.1) and its community procurement procedures. Larger grants of up to WST$500,000 (US$227,200) per activity would be provided through line agencies for 9 Detailed procedures for review, revision and implementation of CIM Plans were developed during project preparation and are described in the Project Operational Manual. 10 The Civil Society Support Program is a grant funding mechanism established in 2010 by government with the support of NZAP. It pools donor funds for civil society programs and makes it easier for civil society groups to access resources under a common application process and reporting requirements. It is directed by an independent Steering Committee chaired by MOF. 7 larger and more complex projects covering several villages. An indicative menu of adaptation options is provided in Annex 2. Component 2: Strengthened Climate Information Services (US$1.5m) 22. This component will carry out a program of activities designed to increase public awareness of climate change issues and to improve the availability and use of data for risk analysis, hazard mapping and knowledge sharing. This program will include: a) Sub-component 1: CSO training, national and local-level education and awareness- raising on climate resilience (US$0.3m). The project will support: (i) provision of training to civil society organizations aimed at enhancing their capacity for delivery of climate change related services; and (ii) development of a Community Engagement Plan (CEP) and a communications strategy aimed at raising awareness of climate resilience. The training will utilize the data and information generated under sub-component 2 below; CSOs will then utilize this information to assist communities in making informed resilience decisions based on community needs/demands. Based on the CEP, the CSOs will assist communities in designing, applying for funding, and implementing simple community-based adaptation activities. b) Sub-component 2: Strengthened data platforms (US$1.2m). This sub-component will support strengthening data platforms for spatial hazard mapping through financing of a comprehensive light detection and ranging system (LiDAR) throughout the country. Component 3: Institutional Strengthening for Climate and Disaster Resilience, Project Coordination and Monitoring (US$2.9m) 23. This component will finance a program of activities designed to strengthen the capacity of the Government for Project management, coordination and monitoring, including: development of an institutional framework setting forth a programmatic approach to climate change and disaster resilience and support towards establishment and maintenance of the Project Management Unit (PMU). The Framework will be integrated with existing government structures and procedures, including the PPCR Steering Committee set up under PPCR Phase 1, which will provide overall policy guidance and supervision for the project. 24. The project will provide resources to hire (a) a Project Manager; (b) a Financial Management Specialist; (c) a Procurement Specialist; (d) an Environmental Specialist; (e) an M&E Specialist; and (f) an M&E data entry clerk, together with (g) a Program Assistant. The Government will provide counterpart staff to work with and learn from the Project Manager and M&E Specialist. Additionally, the project will provide for some three person-years of short-term technical assistance (Coastal Engineer, Coastal Geo-morphologist, Ecosystems Specialist, Climate Change Specialist, GIS and database specialists) to undertake the revalidation of CIM Plans. The M&E Specialists will also support country-level reporting as required by the PPCR. 8 B. Project Financing 25. The project is designed as an Investment Project funded through a grant from the Strategic Climate Fund–Pilot Program for Climate Resilience. C. Project Cost and Financing Table 1 Project Costs Project Components Project cost (US$m) PPCR Financing 1. Implementation of priority adaptation 10.2 10.2 measures to manage climate and disaster- related threats 2. Strengthened Climate Information Services 1.5 1.5 3. Institutional strengthening for climate and disaster resilience; project coordination and monitoring 2.9 2.9 Total Project Costs 14.6 14.6 Lessons Learned and Reflected in the Project Design 26. The project design has benefited from best practices and evaluations from other adaptation, community-driven development and disaster risk management projects, including the recent comprehensive evaluation of World Bank Group experience with respect to adaptation to climate change by IEG.11 Lessons from these evaluations include the need for the Government and donors to:  support institutional arrangements that can sustain the project beyond its funding horizon;  ensure that adaptation projects are not stand alone but part of a broader set of actions, and that lessons are systematically absorbed into government plans and policies;  balance short-term and tangible responses that improve livelihoods and well-being with those that could be transformational over the longer term by influencing land use planning, promoting innovation, and connecting stakeholders with expert knowledge;  increase the understanding of climate risks to allow for informed decision-making and planning (e.g., about where to expand future infrastructure);  develop robust monitoring frameworks; and  explore financial mechanisms to manage climate risks over the long term. 11 Adapting to Climate Change: Assessing the World Bank Group Experience – Phase III. Independent Evaluation Group 2012. 9 At the institutional level, emerging experience suggests that coordinating institutions need to be elevated to a level where they can have effective convening power over line ministries, rather than replace their implementation role. 27. The project design also drew considerably from lessons learned from development of the CIM Plans under SIAM-1 and SIAM-2. The initial CIM Plans concentrated primarily on coastal hazards of flooding, erosion and landslides, and identified infrastructure vulnerable to these hazards by the year 2100 and potential solutions to reduce this vulnerability. The CIM Plans produced under SIAM-2 incorporated emergency management and disaster risk reduction, but none of the Plans systematically address risks from climate change over the short or longer term. CSOs and communities have called for the inclusion of inland as well as coastal areas in the CIM Plans, and for the rapid implementation of these Plans; both are part of the project design. 28. The work done under PPCR Phase I, including the preparation studies for this project, along with the Adaptation Fund project document, have highlighted the fact that engaging CSOs is an effective way to mainstream climate change into community-level planning. This is a central part of the project design. Experience has also shown that building on ongoing initiatives and operational practices minimizes the time required to achieve results, and encourages communities to stay engaged. The project therefore builds on the robust implementation experiences of SIAM-2 (CIM Plan development, community mobilization) and several community-based climate resilience projects. 29. Lessons have also been incorporated from several community-focused projects implemented in Samoa by other donors, primarily UNDP. The Community-Based Adaptation Project, supported through the GEF Small Grants Program, aimed to reduce the vulnerability of three villages and their ecosystems to the adverse impacts of climate change, by building community capacity and providing the necessary infrastructure to protect livelihoods and ecosystems. Valuable lessons were learned about how to raise community awareness of adaptation, and how to implement combinations of green (vegetation replanting) and hard (rock wall strengthening) adaptation measures. Similar experience with coastal replanting to reinforce structural preventive measures such as seawalls was gained from implementation of the Tsunami Recovery Project. Finally, the rural appraisal participatory techniques successfully applied during the Community-Centered Sustainable Development project delivered through MWCSD will provide valuable lessons for the CIM Plan reviews to be undertaken by the proposed project. 30. Drawing on these and other lessons learned, the Climate Resilience Investment Coordination Unit (CRICU) in the Ministry of Finance was designed during PPCR Phase 1 to be a facilitation and overall coordination unit, with implementation left to line ministries, CSOs, and decentralized structures. Moreover, a phased and flexible approach has been incorporated in the design of the ECR project to allow for an active process of learning-by-doing, and ensure that investments and climate risk planning are well coordinated and have political support. 31. Experience from community-level adaptation initiatives and development projects in Vanuatu, Kiribati, Zambia, Kenya and Ethiopia has shown that investing in physical infrastructure is much easier than creating the behavioral changes necessary to reinforce adaptive capacity. The project will therefore invest resources in an awareness campaign at the national and community levels, and will actively engage traditional community leaders and district-level 10 churches and business associations to influence behavior change. Based on international experience, the project will also invest in providing climate and adaptation information to communities and local decision-makers, to enable them to make informed decisions about long- term adaptation choices. IV. IMPLEMENTATION A. Institutional and Implementation Arrangements 32. The key features of the proposed institutional arrangements to be supported under the project are listed below, and further detailed in Annex 3: a) The Institutional Framework provides for a programmatic approach to climate change adaptation and disaster risk reduction, thereby facilitating synergies among various projects and funding sources. b) The arrangements will be able to accommodate and respond efficiently to the varying administrative and reporting requirements of different bilateral or multilateral donors, if, as envisaged, all climate adaptation activities in Samoa are eventually brought under this Framework. c) Capacity constraints of implementing agencies will be specifically addressed through both short-term arrangements and provision for longer-term capacity building. d) The Institutional Framework is built around existing Government structures and processes, and provides opportunities for additional institutional strengthening and streamlining of procedures through other funding sources. e) The administrative and operational arrangements for pursuing a programmatic approach to climate change adaptation and disaster risk reduction will be set out in the project’s Operational Guidelines. f) Initial M&E capability will be established and progressively enhanced to support the longer-term need for the data and capability to assess the extent to which climate change and disaster risk activities are effective in addressing the threats posed by climate change. 11 Figure 1 depicts the institutional framework for the project. Figure 1 Institutional Framework PPCR Steering Committee Secretariat: MOF‐ Climate Resilience  Coordination Unit  (CRICU) Program Execution MNRE‐Planning &  Urban Management   Project Management  Unit (PMU) Project  Implementation: Line  Agencies/CSOs 33. Steering Committee. The existing PPCR Steering Committee will be responsible for providing policy guidance and oversight of project implementation. Regular meetings will be held every six months or more often as needed. Overall PPCR program coordination (including of the West Coast Road Project) will remain the responsibility of the CRICU of the MOF. 34. Secretariat. The CRICU will provide secretariat functions for the Steering Committee, including preparation of documentation and agenda for meetings. It will also coordinate the follow-up of Steering Committee directives. 35. Project Execution. The Ministry of Natural Resources and Environment will be responsible for the day-to-day oversight of the Project Management Unit (see below). 36. Project Management. A Project Management Unit (PMU) will be established to (eventually) administer the implementation of multiple externally funded climate resilience projects. Initially, the PMU will administer and be funded by the proposed ECR project, the Adaptation Fund project, and the forthcoming GEF/LDCF project (see Para. 38). The PMU’s responsibilities and funding base will be expanded as it gains the capacity to administer 12 additional projects by other donors. To address the PMU’s initial capacity constraints, the Project Manager and other key staff will be provided by an external firm. 37. Project Implementation. Line agencies that would support MNRE with the development and implementation of subprojects would include, inter-alia, LTA, MWCSD, MWTI, MAF and SWA. 38. The proposed ECR project will be implemented alongside two complementary UNDP- supported projects (see fn. 6), which will address issues not covered by the ECR. The UNDP- AF project is based on the same concept as the ECR and is focusing on the implementation of CIM Plans in the 25 districts not covered by the ECR. The GEF/LDCF/UNDP project, currently in preparation, will support the mainstreaming of climate change adaptation and DRM in national policy frameworks and planning, and strengthen the responsible state and local institutions through an economy-wide approach. Care has been taken during project preparation to design implementation arrangements that are complementary to those of the UNDP-AF program. The PMU will coordinate both projects, and will evolve, along with the Institutional Framework, to eventually coordinate all external funding for climate resilience projects. Likewise, the same Steering Committee will oversee the three projects. B. Results Monitoring and Evaluation 39. The PMU will be responsible for M&E. This is expected to be an important area for coordination and collaboration between the ECR and AF projects, which will be facilitated by having the single PMU. Guided by the Results Framework, data will be collected for project evaluation through regular reporting by the line agencies involved in project implementation, the technical specialists guiding the review and update of the CIM Plans, and the CSSP. Additional data will come from two sample surveys, to be conducted in years 1 and 5. The collected data will also be used by project management for adaptive management of the project. It is envisaged that the M&E capacity established in the PMU will help to sustain and strengthen the M&E capacity in the MNRE. The M&E facility will be responsible for sharing lessons learned and good practices with the MNRE and with regional PPCR projects being implemented by the World Bank and the Asian Development Bank. 40. The M&E Specialists in the PMU will also guide the development of M&E frameworks for the community-level projects, and provide inputs to the CSO training. They will also work with CSOs to set up processes for collecting information on the direct and indirect beneficiaries of community activities, and on various project indicators. 41. In addition to regular project monitoring and evaluation, the CRICU, in collaboration with the PMU, will be responsible for compiling and reporting on the progress of PPCR programmatic indicators to the PPCR Sub-Committee of the Climate Investment Funds, consistent with the approved PPCR Monitoring Framework for Samoa. The PPCR is providing extensive support to ensure adequate capacity is developed and knowledge shared to measure the necessary outcomes. The PPCR also requires that an independent evaluator provide regular 13 reports. The proposed project will support this broader programmatic monitoring, as well as dissemination of lessons learned. C. Sustainability 42. The complementary functions of the Ministry of Finance and the Ministry of Natural Resources and Environment (with the PMU under the MNRE responsible for project execution, and the Climate Resilience Investment Coordinating Unit of MOF serving as the secretariat) will help ensure that longer-term transformational change towards climate-resilient development is supported through budgetary allocation, information sharing, policy harmonization, and support to CSOs in their close work with communities and traditional leaders to develop Community Engagement Plans and implement the revised CIM Plans. 43. At the district level, progress towards implementation of the revised CIM Plans and the expected resilience benefit will increase community engagement, which will in turn contribute to the sustainability of the efforts. The creation of a platform to coordinate the climate resilience efforts and financial flows of donors will also improve overall coordination among line ministries and with the districts and traditional institutions. 44. The practical experience of communities with designing and implementing the CIM Plans and activities will contribute to behavior change. This overall process of increasing resilience through learning-by-doing will contribute to the sustainability of projects and to sustainable development outcomes. V. KEY RISKS AND MITIGATION MEASURES A. Risk Ratings Summary Table Table 2. Project Risk Ratings12 Risk Category Rating Stakeholder Risk L Implementing Agency Risk - Capacity S - Governance M Project Risk - Design S - Social and Environmental M - Program and Donor M - Delivery Monitoring and Sustainability S Overall Implementation Risk S 12 Ratings: L: Low; M: Moderate; S: Substantial 14 B. Overall Risk Rating Explanation 45. The main risks to the project have to do with capacity of the implementing agencies. Capacity constraints stem from (a) a shortage of qualified personnel; (b) heavy reliance on the limited resources of MNRE; (c) lack of coordination of climate-resilience funding from many different sources; and (d) the different financial management, procurement and reporting requirements of various funding sources. The project’s institutional arrangements address each of these issues through both short-term actions (hiring of consultants) and longer-term sustainability requirements (through training of local hires and formalization of positions). The project will also draw support from the sector agencies and will contract qualified CSOs to undertake some project implementation, though there is still a risk that the latter may not perform effectively. 46. Design risks are related to the project’s strategy of shifting the focus of community-level stakeholders from hard engineering solutions to a broader ecosystems-based approach. To achieve this shift, the project will use a consultative approach to engage with communities, similar to the approach used in preparing the original CIM Plans. 47. Strengthening capacity for M&E through this project, the Adaptation Fund project, and the PPCR itself, will contribute to reducing the risk of monitoring and reporting. In a small country such as Samoa, which has many donors active in the climate and disaster risk areas, the PMU and the Steering Committee will help with coordination of donor and programs. 48. Project sustainability will depend on the willingness of government at all levels to continue supporting the project’s objectives and mobilizing the funding needed to do so. The focus on local planning and activities will help to ensure communities’ ownership of the ecosystems-based approach promoted by the project, and their commitment to sustaining these solutions over the long term. 49. Given the capacity, design, and sustainability risks inherent in the project, a risk rating of Substantial is appropriate. VI. APPRAISAL SUMMARY A. Economic and Financial Analysis 50. The economic analysis consisted of three parts: (a) a top-down analysis focusing on the overall project; (b) a qualitative analysis that focuses on the sub-grants component (Component 1b); and (c) a discussion of other qualitative aspects of the project. A summary is provided below and more detailed analysis in Annex 6. Top-Down Approach 51. The top-down approach assessed the overall economic viability of the project. It compared the aggregate cost of all project components ($14.6 million) against the aggregate 15 expected benefits, which were computed in four steps: (a) PCRAFI simulation model predictions of average annual damages and losses and fatalities from cyclones in the 16 districts were adjusted to reflect the full scope of damages reported in the PDNA for Evan; (b) predicted lives lost were monetized (using the human capital approach) to determine total damages from current hazards; (c) future damages were projected accounting for changes in the hazard and exposure; and (d) the expected benefit stream was determined as the share of damages the project is expected to reduce during the lifetime of the project. 52. In the base case, the IRR of the project is 8.9 percent, within the range of similar projects. These results are fairly robust to changes in the assumptions with ERRs in the 5 to 17 percent range, decreasing when indirect losses or the escalation in future hazards are not included in the analysis, and increasing when the value of lives saved are based on transferred willingness to pay or the co-benefits of the adaptation activities in protecting against other hazards (e.g. tsunamis) are included. The results are, however, most sensitive, with ERRs declining to between 2 and 5 percent, if only 75 percent of the project targets are met or if there is no growth in asset exposure over time. An effective prioritization process, complemented by monitoring is important to the attainment of these targets. Due to the limited scope of the PCRAFI damage estimates, the base case and sensitivity results shown here provide a lower bound on the ERR. For instance, they do not include damages to utility networks, the loss of biodiversity, fisheries, and livestock. Table 3. Results of Economic Analysis NPV NPV NPV NPV Scenario IRR 3% 6% 10% 12% Overall Project (top down approach) 8.92% $11.79 $4.19 ‐$1.04 ‐$2.50 Qualitative Analysis for Component 1b 53. Around 65 percent of the total project costs will be grants to communities to implement local resilience projects. These grants constitute the primary rationale for the ECR, and are expected to provide direct and measurable improvements in resilience. While the exact sub- projects that will be undertaken are not known a-priori, the types of project can be observed from the CIMs that were drafted in the past. They include: coastal plantation, mangrove restoration and rehabilitation, upland plantation, small river dredging activities, water storage tanks, and the relocation of small structures. While larger projects such as bridge and road construction are also included in the CIMs, they would be too expensive to support through these grants. International experience has shown that many of the soft infrastructure activities that were included in prior CIMs are effective in increasing climate resilience. For instance, mangroves can serve as buffer zones, reducing wave strength, water velocity and wind strength of tropical cyclones. In addition, mangrove-planting programs are scalable and provide many co- benefits. Planting mangroves in their native habitat restores coastal biodiversity (including fish and shellfish production), enhances water quality, and can protect homes, agriculture, and livestock from flooding. 16 Other Qualitative Benefits 54. The economic analysis focused on avoided damages and losses from cyclones. Some of the adaptation measures to protect against cyclone damage, such as planting mangroves for coastal protection, will also protect against tsunamis. Similarly, catchment management often increases slope stability, thus reducing landslide occurrence following earthquakes. Many of the sub-projects will also provide other development benefits; e.g., reducing soil erosion will help the tourism industry. Some adaptation measures will also reduce the losses associated with slow-onset impacts of climate change, including saltwater intrusion in water reserves, loss of coastal habitats, and food insecurity from damage to crops, livestock, and coastal fisheries. 55. Allocative efficiency: The project design provides a mechanism to finance sub-projects that are proposed by and implemented on behalf of the beneficiaries. Global experience indicates that devolving sub-project selection to communities results in more effective projects and more efficiently allocated project benefits within the community. 56. The use of conservative assumptions in the economic analysis, and the focus only on direct and quantifiable benefits and efficiency-enhancing project design, suggest that the actual returns to the project may be higher than those indicated by the economic analysis. Financial Analysis 57. The project is not designed as an income-generating project, and a separate analysis of the private financial returns to project investments was not undertaken. The project’s fiscal impact is expected to be small but significant. The grant financing (100 percent of project resources) is equivalent to about 1.9 percent of GDP or about 9 percent of current Government expenditures. The key issues arising from this infusion of resources is the absorptive capacity of the Government, which has already been examined as part of the implementation support plan. Beyond the initial period, the project will incur annual O&M costs of about US$1.45 million. These costs are expected to be financed through a Trust Fund that the Government is setting up to support such activities. B. Technical 58. The focus of the proposed project is on updating and implementation of the revised CIM Plans, which were originally formulated to address the three main coastal hazards—landslides, flooding, erosion—and identify infrastructure vulnerable to those hazards. During project preparation, a methodology was developed, based on best international practice, to revise the Plans to include rapid vulnerability assessments and the use of the most recent data and maps. The participatory process will help ensure the capture of local knowledge. The revised CIM Plans will also incorporate inland natural hazards, including cyclones, drought and sea-level rise, taking a ridge-to-reef approach of assessing vulnerabilities and solutions, in recognition of the fundamental link between processes occurring in differing parts of the catchment and the role of ecosystems in coastal protection and community resilience. While completely updating previous hazard assessments is not considered feasible, the revisions will incorporate the most up-to-date information, along with new imagery and coastline definitions, and will include assessments of 17 additional hazards such as tsunamis and storm surges. The updated Plans will also take account of other planning frameworks such as Village Sustainable Development Plans, Watershed Management Plans, and Disaster Management Plans. The updated CIM Plans will: a) Incorporate ecological and community-based approaches that go beyond those in the original CIM Plans, and may provide alternative or complementary ways of increasing climate resilience. These solutions will focus on addressing the multi- faceted nature of vulnerability as well as hazards and exposure from climate change and other socio-economic factors; b) Encourage discussion of potential voluntary setbacks and retreat of communities and assets out of hazardous areas, rather than pursuing only hazard mitigation and protection solutions; c) Ensure that the proposed hard infrastructure solutions are not only capable of protecting against the identified hazard, but do not have any unintended maladaptive effects; d) Incorporate the best available information and practice in the design of solutions. For example, appropriate sub-projects will be designed to a 35 to 50 year standard (for extreme events) as opposed to the present 10 year standard for most projects; and e) Use inclusive and participatory approaches to ensure that communities understand and use the risk information and their own knowledge in designing solutions. 59. The decision to engage CSOs as service providers was based on: (a) the need to access the capacity that exists outside of government, given the limited availability of trained government staff; and (b) the experience of some of the CSOs with climate resilience, and of others with working at the community level. By strengthening these organizations and making them important players in a coordinated national effort, the project will also minimize the risk of CSOs implementing stand-alone adaptation products that do not connect with wider community and national-level efforts. Using the Civil Society Support Program to deliver community-level grants will also strengthen the CSSP’s role in changing current practices. C. Financial Management 60. A financial management (FM) assessment for the project identified the main FM risks as (a) the limited FM capacity of the implementing agency (MNRE), which could lead to poor accounting and poor adherence to existing internal controls; and (b) the requirement that small sub-grants be managed by community groups, which are likely to have limited FM expertise, possibly leading to poor record keeping, lost documentation, expenditures on ineligible items, and subsequent delay of the second tranche. 61. These risks will be mitigated by the engagement of (a) a dedicated Finance Management Specialist for the life of the project, to prepare and review all documentation and sub-grant payment requests; (b) an International Finance Advisor for the first six months of the project, to ensure that adequate controls are in place, set up the project’s financial management system, and prepare the initial financial reports; and (c) a liaison officer to provide initial training to community groups and then carry out site visits to ensure that adequate documentation is being 18 maintained for the acquittal of funds. Other mitigation measures will include (d) monthly reconciliation of project accounts with government records; and (e) preparation of an Operations Manual (adopted by government on October 4, 2013) covering funding arrangements, community engagement, use of consultants, sub-grant procedures, and procurement. D. Procurement 62. Although MNRE does have prior experience with Bank-financed projects, it has inadequate in-house staff numbers to implement a large capital investment portfolio. This has necessitated the hiring of consultants to assist with procurement and contract management services. A firm will be hired to provide these services under a Project Management Contract covering key management responsibilities. 63. The Government’s Tender Board and the Cabinet approve contracts of more than US$22,720 and US$227,200, respectively. Contracts over US$22,720 are subject to clearance by the Attorney General’s Office, prior to signing. 64. Key actions to mitigate procurement-related risks include implementation of a system to track decision-making, dissemination of procedures detailed in the Operations Manual, and appointment of a firm to provide project management and technical services to support MNRE. Procurement activities will include the hiring of consultants for project implementation support. Procurement of goods and works will be carried out primarily under the community sub-projects, through the CSOs, and in compliance with procedures detailed in the Operations Manual. A summary Procurement Plan is included in Annex 3. E. Social (including Safeguards) 65. The broader social aims of the project will be achieved through community participation in the CIM review, public awareness raising, and training of CSOs to assist communities in preparing sub-grant proposals and implementing CIM Plans. This approach supports the work of MWCSD under the Village Sustainable Development Plan, which emphasizes identification of resilience skills and resources, as well as areas where external help is needed. 66. Two separate reports on the social aspects of the project have been prepared. A Social Assessment (SA) has been carried out to identify any Indigenous Peoples’ issues; it emphasizes the importance of discussion on land issues to guide resettlement planning, and describes the role of customary approaches and rights in community consultations and action plans. A Civil Society Assessment has identified the challenges faced by CSOs in Samoa; it recommends capacity building strategies to assist them in engaging more effectively with communities to build climate resilience. 19 67. A Gender Impact Report13 was carried out to assess the different impacts of climate change on women and men, young and old, and other groups whose situation has been exacerbated by climate change phenomena. Some of the key findings of the report, based on community consultations, show that climate change has brought about distinct shifts in the traditional roles of men and women. For instance, multiple climate catastrophes in the last few years have forced traditional women healers to look for other job opportunities due to the loss of medicinal plants and herbs needed for their work. The report also found that the lack of recognition of these gender-differentiated impacts at the village level can increase communities’ vulnerability to climate shocks in the future. The report proposes that the project, as well as other PPCR activities, include a Gender Monitoring Framework (GMF) to track the gender impacts of project activities. The proposed GMF would assess sub-projects (a) at the design phase, to establish a baseline of the different gendered impacts of climate change; (b) during planning, to screen for possible unintended consequences of sub-project activities; and (c) during implementation, to monitor progress toward putting in place gender-sensitive climate-resilience measures. Indicators recommended and used by the Ministry of Women, Community and Social Development are incorporated in the project’s Monitoring Framework. 68. The findings of all of these preparatory studies are integrated into ECR project design. A Community Engagement Plan (CEP)14 will also be informed by these findings, and will integrate communications and awareness raising, climate and disaster resilience, environmental and social safeguards activities, and M&E into a toolkit for CSOs and other stakeholders to use in implementing CIMs. After the development of the CEP, CSOs will be trained, with assistance from the CSSP and MWCSD, to assist communities in preparing and implementing sub-projects to carry out the CIM Plans. Qualified CSOs will then be engaged to monitor the implementation of CIM Plans in accordance with the CEP. The CEP will form part of the already adopted Project Operations Manual. 69. Social Safeguards. OP/BP4.12 on Involuntary Resettlement is triggered. Expected land impacts will be on public land or easements, or land selected and donated voluntarily by beneficiary communities as part of the usual community contribution in CSSP projects. Similarly, village transport projects will not proceed without community consent, and as is the current practice, will not involve involuntary land acquisition or payment of compensation. To ensure that planning does not create negative impacts, a Land Acquisition and Resettlement Framework (LARF) has been prepared to ensure appropriate application of OP 4.12, to complement the provisions under Samoan law, and to guide the processes of consultation and consideration of options, and ensure broad community support for proposals. The LARF specifies requirements to verify and document community decisions and donations of land, and provides for resolution of disputes and grievances. These processes will be incorporated in the modes of engagement already in place through MNRE, MWCSD and CSSP, and will be included in the Community Engagement Plan. Should involuntary impacts be unavoidable, options will be discussed with Affected Persons (AP); a census of APs and inventory of assets 13 Understanding Gender-Differentiated Impacts of Disasters and Climate Change in Samoa (draft 2013; final forthcoming). 14 The CEP will be developed with the CSSP and MWSCD, with support from a technical expert from the MNRE and other line agencies, and with CSO participation. 20 will be recorded and evaluated; and affected populations compensated according to the principles described in the LARF which provides for preparation of a Resettlement Action Plan (RAP),15 with funds budgeted for that purpose. Institutional responsibilities for these actions are spelled out in the LARF. However, as communities will plan, develop and implement their own proposals for the sub-projects, issues arising from resettlement are unlikely to arise. 70. OP/BP 4.10 on Indigenous Peoples is also triggered. Indigenous Polynesians comprise 93 percent of Samoa’s population. The balance are mainly the descendants of German, Chinese, Melanesian, and Polynesian migrants who have been largely absorbed into the Samoan social system, although few have access to land except through ties of affinity. The Social Assessment confirms the dominance of fa’a Samoa—Samoan culture and custom—in the Constitution and law on land dealings, which prohibits alienation of customary land. Provisos to ensure that land- based livelihoods are protected and benefits are equitably shared are central to this project, and have been incorporated into the project design and ESMF, and will be included in the procedures mandated in the CEP. The ESMF includes provisions that specify appropriate roles and responsibilities, and outline the necessary reporting procedures, for managing and monitoring environmental and social concerns, including those relating to gender and different sub-groups within the beneficiary communities that will arise from the subprojects. As the vast majority of project beneficiaries are indigenous peoples, no stand-alone Indigenous Peoples Plan (IPP) has been prepared. OP 4.10 requirements are incorporated into the project design and the ESMF. This includes provisions that aim to ensure that land-based livelihoods are protected and benefits are culturally appropriate and equitably shared. These provisions will be further elaborated in the procedures mandated in the CEP that will be prepared prior to any financing of sub-project activities in local communities. Subprojects will be demand driven, community based and prepared with close participation of local communities; as the subproject beneficiaries will be solely or overwhelmingly indigenous peoples, subproject proposals will include OP 4.10 requirements and separate subproject IPPs are not required. 71. Known sacred or cultural sites will be avoided in design and planning. Chance finds of Physical Cultural Resources (OP/BP4.11) are addressed in the Environmental and Social Management Framework (ESMF) drafted by the Government (see below). F. Environment (including Safeguards) 72. The project will finance a variety of small-scale structures and ecologically based measures (i.e., soft approaches) such as reforestation and mangrove rehabilitation, which may, in some cases, have adverse environmental impacts due to construction in sensitive areas. Typical construction-related impacts are temporary and can be mitigated through proper measures. Potential impacts on natural habitats, on the other hand, need to be adequately assessed and minimized to the extent possible. The project area encompasses a number of protected and key biodiversity areas, and sub-projects in or near these areas could introduce outside access to pristine natural habitats. An Environmental and Social Management Framework (ESMF) 15 Also see paragraph 55 in Annex 3. 21 prepared by the Government is designed to identify potential negative impacts and ways of preventing them and provides for the preparation of an Environmental Management Plan (EMP) for activities having potential significant environmental impacts and/or those with a physical works value of $50,000 or more.16 A negative list of activities has also been incorporated in the ESMF to directly avoid activities with unacceptable environmental and social risks. The following environmental safeguards policies are triggered in this project: (i) Environmental Assessment (OP 4.01); (ii) Natural Habitats (OP 4.04); (iii) Forests (OP 4.36); and (iv) Physical Cultural Resources (OP 4.11). Public consultations have been held on the islands of Upolu and Savai’i. The ESMF includes a Grievance Redress Mechanism (GRM) which makes use of existing channels such as the Complaints Desk of the Planning and Urban Management Agency (PUMA). 73. The ESMF and LARF were disclosed in Samoa on September 23, 2013 and in the World Bank InfoShop on September 24, 2013 for the ESMF and September 27, 2013 for the LARF. 16 Also see paragraph 51 in Annex 3. 22 Annex 1: Results Framework and Monitoring . Country: Samoa Project Name: Enhancing the Climate Resilience of Coastal Resources and Communities (P126596) . Results Framework . Project Development Objectives . PDO Statement The project development objective is to support coastal communities to become more resilient to climate variability and change. These results are at Project Level . Project Development Objective Indicators Data Responsibility Cumulative Target Values Source/ for Unit of End Methodolog Data Collection Indicator Name Core Baseline YR1 YR2 YR3 YR4 Frequency Measure Target y PMU approved Direct project work Number 0.00 500.00 10000.00 20000.00 30000.00 45000.00 Annual MNRE beneficiaries program and annual reports Percentage Female Sub-Type 0.00 48.00 48.00 48.00 48.00 30.00 beneficiaries Supplemental Percent of sub- Project Percentage 0.00 0.00 70.00 70.00 70.00 70.00 Annual MNRE projects with Reports 23 climate/disaster resilience satisfactorily implemented based on a scoring system LiDAR, ground Area restored or surveys, Hectare (Ha) 0.00 0.00 200.00 400.00 600.00 120.00 Annual MNRE re/afforested aerial maps and project reports Record of Hectare (Ha) Area mangrove Sub-Type 0.00 0.00 100.00 200.00 300.00 70.00 Annual MNRE re/afforested area Breakdown restored Records of Hectare (Ha) natural Area restored Sub-Type 0.00 0.00 100.00 200.00 300.00 50.00 Annual coastal MNRE Breakdown vegetation restored . Intermediate Results Indicators Data Responsibility Cumulative Target Values Source/ for Unit of End Methodolog Data Collection Indicator Name Core Baseline YR1 YR2 YR3 YR4 Frequency Measure Target y Participants in Actual consultation number of activities during Community Number 0.00 500.00 1500.00 3000.00 4000.00 5000.00 Annual MNRE project members implementation who have (number) participated 24 in CIM Plan review and project identificatio n process from records of attendance at workshops and meetings Participants in Records of consultation attendance Number activities during at Sub-Type 0.00 250.00 750.00 1500.00 2000.00 2500.00 Annual MNRE project workshops Breakdown implementation and - female meetings CIMs updated through consultative Project processes and Text 0 2 8 16 16 16 annual MNRE reports incorporate other planning frameworks Number of trained CSOs providing Project climate change Number 0.00 0.00 5.00 15.00 15.00 15.00 Annual MNRE reports related services under the project Maps prepared Maps Maps Maps Relevant LiDAR and Text None None Annual MNRE for bathymetry prepared prepared prepared hazard mapping 25 and topography and in and in and in maps, services and for Upolu and use use use data on Annual Savai'i and use wave Reports to strengthen moveme resilience nt, and other informati on contribut es to decision making on climate risks and used in the design of risk manage ment intervent ions. Improved awareness on climate change Twice associated risks (beginning Sample Percentage 10.00 40.00 MNRE and hazards and end of Survey among project) population in targeted districts Use of improved Twice climate (beginning Sample Percentage 0.00 40.00 MNRE information and and end of Survey tools. project) 26 Climate Climate informati risks Evidence of Climate on Use of Use of assessme strengthened informatio products/ climate climate nt government n services risk risk integrate capacity and product/se PCU are used assessme assessme d into Project coordination Text rvices establish in Annual MNRE nt tools nt tools safeguar reports mechanism to rarely ed decision develope develope ds mainstream used in making d by d by instrume climate decision in project project nts used resilience. making climate by the sensitive project sectors . 27 Annex 2: Detailed Project Description COUNTRY: SAMOA Enhancing the Climate Resilience of Coastal Resources and Communities 1. The proposed project is one of two investment projects included in Samoa’s Strategic Program for Climate Resilience (SPCR) approved by the Pilot Program for Climate Resilience (PPCR) Subcommittee) of the Climate Investment Fund. The other project, Enhancing the Climate Resilience of the West Coast Road (Apia to Airport), became effective in March 2013, and eight districts along the road are included in the proposed Enhancing Climate Resilience (ECR) project. 2. Samoa’s Second National Communication (SNC) to the UNFCCC includes an updated vulnerability assessment that can be adopted as a baseline for the ECR project. Building on the National Adaptation Plan of Action (NAPA), the assessment was undertaken for all sectors and identified those most vulnerable to climate variability and climate change as: water; agriculture and food security; forestry; infrastructure; health; and coastal environments. Climate change and climate-induced disasters are expected to cause instability in food production and water availability, affecting income-generating activities for communities and the country at large. 3. Many changes are anticipated for the country’s biodiversity as a result of climate change, not only in terms of species population but also in terms of the health of entire ecosystems. The health of biodiversity has direct consequences for inter-related sectors, namely fisheries, forestry, agriculture, tourism, infrastructure, health and water. At the ecosystem level, climate change is expected to affect not only the diversity of native fauna and flora, but also the ecosystems that provide goods and services for human welfare and development. Extreme climatic conditions relevant to biodiversity include sea level rise, higher sea surface temperatures, increasingly frequent and intense tropical storms, frequent flooding, extreme tides, and increases in ocean acidification. These climatic changes will have potentially disastrous consequences for marine biodiversity and ecosystems, including:  habitat mortality: coral bleaching, erosion, and sedimentation;  accelerated coastal erosion, leading to destruction of beaches and mangroves important to certain marine species;  extensive coastal inundation and higher levels of sea flooding;  waves and storm surges into coastal land areas, causing salinity in coastal wetlands and coastal springs;  mangroves and wetlands pushed further inland by frequent king tides and sea-level rise;  eutrophication, sedimentation and siltation of water resources, leading to the proliferation of invasive species;  increased destruction of habitats and nursery areas, leading to species decline;  decline in in-shore fisheries; and  loss of natural reefs that protect the islands and coastal communities. 28 4. As detailed below, the project will address these vulnerabilities in the villages of 16 districts on both Upolu and Savai’i. The complementary UNDP-Adaptation Fund (UNDP-AF) project will implement similar activities in the remaining 25 districts in the country. Figure A2.1 Distribution of Districts to be Supported by the ECR and UNDP AF Projects 5. The ECR’s project development objective is to support coastal communities’ efforts to become more resilient to climate variability and change. To achieve this objective, the project will develop and implement immediate and urgent adaptation activities to protect the lives and livelihoods of the people; protect infrastructure and environment; and increase awareness of climate change impacts and adaptation activities among communities, civil society and government. The complementary UNDP-AF and UNDP/LDCF projects will also incorporate adaptation measures and goals into national and sector policies and development plans. 6. At the completion of the project, the following outcomes are expected:  Integrated planning frameworks are being used at the community level to address threats from climate and disaster risks;  Vulnerable communities use improved tools, information and instruments to design and implement community-led resilient activities;  In selected coastal and inland districts affected by climate variability and climate change, improvements in the vegetation cover are indicative of functioning of ecosystems and their ability to support sustainable livelihoods and income-generating activities; 29  An increased awareness of climate impacts and resilience options, and processes in place to mainstream these options in policies, programs and activities at all levels of government;  Improved coordination among various climate resilient activities overseen by units in the MOF and MNRE;  An established monitoring and reporting process that can track changes in resilience from the national to the local level. 7. To achieve these outcomes, the project will support the implementation of revised Coastal Infrastructure Management (CIM) Plans at the community level while enhancing the capacity of those civil society organizations (CSOs) that play an important role in climate risk management in Samoa. The project will comprise three components: (a) implementation of priority adaptation measures to manage climate and disaster-related threats; (b) strengthened climate information services; and (c) institutional strengthening for climate and disaster resilience, and project coordination and monitoring. Component 1: Implementation of priority adaptation measures to manage climate and disaster-related threats (US$10.2m) 8. This component will strengthen the adaptive capacity of communities, and increase the resilience of coastlines and near shore areas as well as coral reefs (including their productivity) to the risks posed by climate variability and change. It will support the implementation of priority community adaptation measures derived from revised CIM Plans and other community planning frameworks. The project will implement a ridge-to-reef approach, which involves managing climate and disaster risks from upper water catchment areas to the coastal zone. 9. The CIM Plans for the 16 districts participating in the project were prepared during the SIAM-2 project and are, on average, seven years old. They will be updated in light of developments at the village and district levels, as well as new information on climate change and disaster risks and ways to manage them. Hazard zones may also need to be updated to reflect hazards not considered when the Plans were first prepared, as well as new hazards created by recent climate events. 10. The revised Plans will be much broader in scope that the original Plans, and will include considerations such as (a) the efficacy of monitoring and early warning systems; (b) physical and social infrastructure priorities based on recent disaster experiences; and (c) climate variability and change considerations. The revised Plans will take a more holistic, systems-wide approach to understanding exposure and vulnerability in terms of ecological and sectoral linkages, and findings ways to create positive feedback loops to reduce these impacts. The Plans will also integrate the relevant features of other community planning frameworks—Disaster Management Plans, Village Sustainable Development Plans, and Watershed Management Plans. At the same time, the review and revision process will be guided by the need to be strategic—in focusing on how best to enhance resilience, add value to existing Plans, minimize redundancy, and optimize coordination and efficiency in the use of time and resources. A checklist of key factors to 30 consider in reviewing the CIM Plans has been prepared to help guide the revision. Excellent tools are also already available in the literature. 11. The component consists of the two sub-components described below; and detailed procedures for implementing them are described in the Project Operations Manual. Sub-component 1: Participatory Prioritization of Disaster Risks and Adaptation Options (US$0.8m). 12. This sub-component will support communities in upgrading CIM Plans through a participatory process that will also include adoption of relevant features of other management plans listed above. The review will be undertaken by technical specialists based in the PMU in MNRE, as well as specialists from the line ministries and CSOs. The latter will focus on community facilitation, assisting the consultation process, training and awareness raising of communities on climate and disaster threats (see Component 2), and assisting villagers in developing small community projects to be funded by the project. The more technical V&A assessments and review of community projects will be undertaken by the specialists, utilizing most recently available data (see below). 13. The revisions to the Plans should ensure that: (a) all climate-related and natural hazards are included, and where possible, new imagery and information used to assess risks and develop options that deliver tangible benefits in the short term and are not maladaptive to future climate conditions; (b) the vulnerabilities are assessed and adaptation solutions identified on a ridge-to- reef basis that recognizes the interconnected nature of the different ecosystems; (c) incorporate the role of ecosystems in enhancing resilience to climate risk, through the use of ecosystem- based approaches; and (d) incorporate both short-term adaptation options and longer-term options that have the potential to be transformative, such as moving communities out of high-risk areas. 14. To avoid a lengthy planning exercise and move quickly to implementation, a rapid Vulnerability and Adaptation (V&A) assessment will be undertaken. The technical team in the PMU will begin with a desk review of the existing CIM Plans to screen for activities known to have already been implemented or no longer relevant. The other planning frameworks will also be assessed to identify complementary activities or areas of conflict that are at odds with enhancing community resilience. Data to be utilized for some analytical work could include:  Mining Google Earth for high-resolution imagery of coastlines and comparing with historical records of satellite imagery or low-altitude aerial photographs of key environmental features;  New shoreline mapping based on updated aerial photography, including reef flats to deep water drop-off;  New tsunami hazard zones as produced during the Tsunami Evacuation Mapping Project,17 ; 17 Tsunami Evacuation Mapping Project, GNS Science, 2011 31  Other spatial hazard information as it becomes available (e.g., the CSIRO storm surge study being undertaken along the Upolu NW Coast);  New elevation data as it becomes available (e.g., the LiDAR18 data presently being collected along the Upolu NW coast);  Land use, land cover, ecological classifications, and other available environmental data;  Results of monitoring of other key indicators associated with meteorology, hydrology, sedimentation, fish stock assessments, sea level rise and saltwater intrusion; and 15. GIS data collected in each community.19Two rounds of consultations with communities will be required to update the CIM Plans and agree on priorities. The initial meetings will collect primary information needed for screening (for example, confirming which activities in the CIM Plans have been implemented or are no longer necessary) and scoping the district. Using this information, the team will identify priority needs and create visualizations. 16. The second round of consultations will be more comprehensive; the visualizations will be used along with the results of initial investigations to help the community recognize and design their interventions. Facilitators will help each of the villages to prioritize needed interventions and prepare one or two sub-project proposals for financing. Sub-component 2: Sub-grants for implementing priority climate resilience measures (US$9.4m). The annual work program for this component comprises a series of sub-projects. Proposals for grant financing will be developed for each of the 99 villages in the 16 participating districts. Some sub-projects may be developed at a district scale for multiple villages in order to address ecosystem/catchment and/or social resilience issues that affect more than one village, and to benefit from economies of scale and increased efficiency. Some activities may also be identified for which resource and other requirements are beyond the scope of the ECR project; for these, the Government will seek alternative sources of financing either during or after the ECR project. 17. The work program, including all sub-projects, would be approved by the PPCR Steering Committee. Grants would be channeled through the CSSP directly to beneficiary community groups. In line with current CSSP practice, the ceiling for such grants would be WST50,000 (US$22,720). Experienced NGOs/CSOs could work with communities to implement these projects. Communities could also seek technical assistance through the project from relevant line ministries. Typical projects to be implemented with CSOs (based on current experience) include: water tank installation, mangrove replanting, community pool (water supply and bathing) upgrading, demarcation, and marking of evacuation routes and sites. 18. The work program would also include larger projects such as larger infrastructure works, beach replenishment, and catchment management, which would be implemented through the 18 The project will finance (jointly with the UNDP-AF) LiDAR coverage of the country, which will provide an updated set of geo-referenced high-resolution aerial photographs covering bathymetry and topographic data. 19 A GIS will be permanently installed in each community, for use during and after the project. 32 relevant line agency. Once the annual work program is approved by the Steering Committee, MOF would be authorized to allocate the sum for implementing the project(s) directly to the budget of the relevant line agency. The line agency would work closely with the community in implementing these larger projects, and communities would agree on monitoring indicators. A specific clause for force majeure would be included in sub-grant agreements to account for delays outside the control of the communities. 19. Sub-project eligibility criteria would include the following:  The proposed sub-project must demonstrate clear adaptation benefits and not contribute potentially to maladaptation (i.e., have short-term benefits, but increase vulnerability over the longer term).  The activity must have been identified as a priority in the CIM Plan review and the participatory planning process  The proposed sub-project must be screened for potential social and environmental impacts and must not have been found to require a full-scale Environmental and Social Impact Assessment; and  A proposed sub-project concerning rehabilitation (such as mangrove replanting) must demonstrate that it is replacing the same type of habitat that has been degraded, and that the causes of that degradation were or can be removed to ensure the rehabilitation is successful. 20. During preparation, a review of CIM Plans and various V&A provided the following summary of climate change and disaster threats and related impacts and adaptation options under consideration in the targeted areas: 33 Sector and System Climate Change and Disaster Threats and Adaptation Options Under Consideration Under Related Impacts Consideration Infrastructure Infrastructure facilities and assets are Implementation of integrated coastal vulnerable due to their location and exposure. management and shoreline protection More than 70% of all infrastructure facilities adaptation measures that build resilience to are located within 100m of the coastline climate change and disaster–induced effects; (Coastal Infrastructure Management Strategy e.g., low-scale sea-walls, submerged wave 2006) or close to rivers. Poor site breakers, retention walls associated with development, density and location of landscaping, moveable coastal protection infrastructure facilities; limited control of site units (CPUs and tetrapods) and beach- drainage causing erosion; varied quality and replenishment techniques, river training, form of construction standards; poor drainage construction, raising building infrastructure design; location and operation platform levels, renovation of evacuation can directly damage productive ecosystems, centers. Effective and efficient divert flood waters, cause site-level flash enhancement of transport links can provide flooding, promulgate erosion and scouring, safer and more resilient access during and and direct polluted waters to environmentally after extreme events. Generating practical sensitive areas (ESAs). guidelines and know-how to assist the communities to provide quick early action in the implementation of adaptation measures. Socio-economic Cyclones, extreme rainfall events, flooding, Upgrading of evacuation shelters, drought, sea level rise, and storm surges and community water pools, community water higher frequency of extreme events have storage tanks, early warning systems; increased the vulnerability of the coastal improvement of fisheries management areas, its communities and their livelihoods. through the development of localized There will also be effects on the broader management plans, climate resilient value-chain stakeholders such as service agriculture initiatives, projects to improve industries, fisheries, agriculture and food security of supply of fuel and building enterprises. materials, energy security measures. Extending and enhancing communication linkages to ensure that climate early warning and information services provided by the Meteorological Division of MNRE are accessible to all communities. 34 Environment - Sea level rise and sea surge is increasing Solid waste management, removal of debris ecosystems erosion, causing loss of beach profile, from culverts and drainage channels. mobility of sand into and along the coastal Mangrove replanting, natural coastal zone. Natural coastal resilience is being vegetation planting (bio-shields, or erosion diminished as beaches, lagoons, coral reefs, control rehabilitation), coral reefs (locally coastal vegetation and wetlands are being managed marine areas and fishing reserves) degraded, modified and/or converted through and wetlands management, riparian disturbance, sand mining, changes in land use; vegetation/stabilization. variations to natural drainage systems or poor waste management practices. Increased bleaching, coupled with reduced calcification, from increased water temperature and ocean acidification will affect coral growth and detrimentally affect reef integrity and their ability to naturally adapt to sea level rise. Tropical cyclones exacerbate the above issues. Institutional There is a general lack of suitable strategic Mainstreaming of climate change-induced land use planning, guidelines on the siting of disaster risks in the implementation of the developments and best approaches to building revised CIM plans and associated resilience, updated building codes, improved community plans through the provision of infrastructure planning and design, approaches adequate climate risk data, knowledge of to integrated water resource management, climate change and disaster risk processes waste water management methods, solid waste and training in the means to implement management,- for the community-based adaptation measures suited at the activities. Poor coastal planning and community level. Better community management, encroachment of built facilities engagement and awareness; limiting sand in sensitive coastal ecosystems and highly mining from beaches and rivers; relocation vulnerable areas, exacerbating coastal erosion of assets out of hazard zones and and degradation of coastal zones; Inadequate encouraging use of more resilient off-shore waste management and pollution control fisheries resources (such as pelagic species). affecting both terrestrial and marine ecosystems; Unsustainable fishing practises for both local and commercial supply causing degradation of reefs. Middle and Upper Threats and impacts associated with middle Revised watershed management plan (which Catchment – and upper catchment zones, in particular includes forestry) for the stabilization and Forestry forestry, are typically a result of (i) Flash rehabilitation of the slopes. The plan will flooding;(ii) Extreme storm and flood events include zoning of the slopes, identifying ;(iii) Drought assumed to occur during the dry demonstration areas, and defining season. Overall, middle and upper catchment environmental safeguards and development components were found to be vulnerable to controls for each zone. Implementation of large-scale or extreme flooding, which the plan will result in increased resilience of highlights the existing vulnerability to storms demonstration areas as a result of ecological and associated flash flooding and the very based and agro-forestry activities in strong need to align disaster risk reduction degraded and unproductive areas, and activities with climate change adaptation through slope stabilization and terracing. strategies. The plan will also strengthen forest extension systems to service farming communities, and support communities in developing low-impact ecological-based practices. 35 Component 2: Strengthened Climate Information Services (US$1.5m) 21. This component will strengthen the provision of climate information; increase public awareness of climate change issues; and improve the availability and use of data for risk analysis, hazard mapping, and knowledge sharing. The component will consist of the two sub- components described below. Subcomponent 1: CSO training, national and local level education and awareness-raising on climate resilience (US$0.3m) 22. CSOs will perform an important role in liaising with Village Councils, awareness-raising, and supervision of project activities. The project will support provision of training to CSOs aimed at enhancing their capacity for delivery of climate change related services to community- level applicants as well as other stakeholders. The training will utilize the data and information generated under sub-component 2; CSOs will then utilize this information to assist communities in making informed resilience decisions based on community needs/demands. It will also enable the CSOs to develop Community Engagement Plans (CEP) that will integrate the communications, environmental, and social safeguards work streams and assist communities in designing, applying for funding, and implementing simple community-based adaptation activities. CSOs will be engaged and trained to deliver the CEP, including assistance with procurement, financial management, data collection, and implementation. A Technical Team in MNRE, with assistance from experts in other relevant national government agencies (Ministry of Works, Transport and Infrastructure, Ministry of Women, Community and Social Development, Ministry of Agriculture and Fisheries, Ministry of Education, Sports and Culture, Ministry of Health, Samoa Water Authority), Samoa Umbrella for Non-Governmental Organizations (SUNGO), will provide advice and inputs into the CEP and the CSO training. CSOs will receive on-the-job training in delivery of the CEP, including community mobilization and participatory planning of climate-related service provision in the 16 pilot districts. 23. The project will also support the development of a comprehensive and targeted Communications Strategy at the national and local levels to raise awareness of climate resilience. It will draw on Government and Bank experience in communications for participatory development. In collaboration with key Government agencies, the project will support the preparation of information materials for the general public, schools, and women’s groups, since women and children may have higher levels of vulnerability to climate change and disasters. Information materials will be in Samoan and English and include graphic and appropriate pictorial material to facilitate effective communication with communities through print and mass media. Talk shows/discussion with opinion leaders and community members will be another source of information. Awareness-raising activities and materials will be included in the Community Engagement Plan for delivery through CSOs. Sub-component 2: Strengthened data platforms (US$1.2m) 24. This sub-component will support the provision of spatial hazard mapping data (elevation, land use, land cover, and ecological) through the financing of (with the two UNDP projects) 36 complete coverage of the country by the LiDAR system, which provides real-time bathymetry and high-resolution topographic data. 25. To undertake the CIM Plan reviews, including updated V&A Assessments, the following types of data will be required:  Updated high-resolution aerial photography  New shoreline mapping based on updated aerial photography, including from reef flats to deep water drop-off  New tsunami hazard zones as produced during the GNS (2011) study  Other spatial hazard information produced since the original CIM Plans (e.g., the CSIRO storm surge study being undertaken along the Upolu NW Coast)  New topographical data as it becomes available  Land use, land cover, ecological classifications and other available environmental data 26. These data will be compiled into a single GIS database and made available to the project team. Most of the above data will be obtained through the LiDAR system. The cost of this activity will be shared with the UNDP-AF project. Component 3: Institutional strengthening for climate and disaster resilience, project coordination and monitoring (US$2.9m) 27. This component will support project management activities under components 1 and 2. Most significantly, it will provide the Institutional Framework for a programmatic approach to climate and disaster resilience, facilitating the more effective use of funds from different sources, including the PPCR, the Adaptation Fund, and the LDCF. The Institutional Framework will utilize the existing Government structures and procedures, including the PPCR Steering Committee, which will provide overall policy guidance and oversight for the project. Moreover, the Institutional Framework will promote the broader implementation of climate and disaster resilience projects by sector agencies and civil society organizations and thereby further encourage the mainstreaming of climate and disaster resilience in sector plans and programs. 28. To overcome the Government’s capacity constraints in implementing the growing number of climate and disaster resilience projects, a Project Management Unit will be established under the supervision of MNRE to be responsible for the day-to-day management of the project. The goal over time would be for the PMU to provide a common platform of administrative and operational approaches through which all external funding and support for climate and disaster resilience could be efficiently managed. Initial staffing of the PMU would be through the hiring of consultants, assignment of counterpart staff, and local hire. Initially each project, including those supported by the PPCR, would provide technical and administrative support to the PMU, with a view that over time capacity would be established within the PMU and that complementarities would be established among technical/administrative support provided through different funding sources. Operational Guidelines will be prepared as part of this PPCR-supported ECR project to provide the platform of administrative and operational arrangements through which such a programmatic approach to climate and disaster resilience could be pursued. Initial M&E capability would also be established in support of the longer- term need for a database and assessment capability as to what climate change and disaster risk 37 activities are being undertaken, and the extent to which the threats posed by climate change are being adequately addressed. 29. Resources will be made available under the project for hiring of: (a) a Project Manager; (b) a Financial Management Specialist; (c) a Procurement Specialist;(d) an Environmental Specialist; (e) an M&E Specialist; and (f) an M&E data entry clerk, together with a Program Assistant. In support of the above nationally recruited staff, international specialists would be recruited to provide specialized support on a periodic basis in project management, financial management, procurement and M&E. The Government will provide counterpart staff for the Project Manager, Financial Management Specialist, and M&E Specialist. Considerable technical input will, however, be required, especially in the first 18 months, to revalidate and prioritize both the large and small (community-implemented) sub-projects identified in the revised CIM Plans, which will provide the planning framework for investments under Component 1. Accordingly, the project will provide some three person-years of short-term technical assistance (coastal engineer, coastal geomorphologist, climate change specialist, ecosystems specialist, and GIS specialist) to undertake this revalidation. Technical assistance will also be provided in cases where more detailed technical review is needed, and especially for sub-projects implemented by the communities and CSOs through the CSSP. Logistical support will also be provided. At mid- term or before, as deemed necessary, discussions will be held with other donors and multilateral agencies supporting the PMU with a view to strengthening administrative and operational complementarities including through cost-sharing. 38 Annex 3: Implementation Arrangements COUNTRY: SAMOA Enhancing the Climate Resilience of Coastal Resources and Communities Project Institutional and Implementation Arrangements Institutional Background and Context 1. The institutional arrangements established by the Government to respond to the challenges of climate change have served the country well, and Samoa has been recognized internationally for its proactive response to strengthening climate resilience and disaster risk reduction. An important output from the first phase Pilot Program for Climate Resilience (PPCR) was the Climate Resilience Investment Program (CRIP), which the Government approved in 2011. The CRIP provides a broad-based strategy for achieving climate resilience at the national level based on the Strategy for the Development of Samoa (SDS), the National Adaptation Plan of Action (NAPA), and other policy and planning instruments. A number of projects have also been effectively implemented, including the World Bank-assisted SIAM-1 and SIAM-2, which drew upon the expertise developed by the Ministry of Natural Resources and the Environment (MNRE) to address climate change adaptation and disaster risk reduction. 2. Increasingly, however, the Government, and particularly MNRE, faces capacity constraints in responding efficiently to the growing contributions from bilateral and multilateral donors in support of these efforts. These constraints have been compounded by the different institutional and operational requirements of various donor agencies. Therefore, while much has been achieved, a consensus is emerging that to scale up and more comprehensively address climate resilience issues, there is a need for not only capacity development, but also long-term institutional strengthening, and a comprehensive institutional framework and approach. 3. The recent Situation Analysis20 completed under the first phase of the PPCR captures many of the key points of concern. While there has been some progress since the analysis was undertaken, the issues it raised, remain pertinent. The analysis notes, for example, that “for the integration and proper implementation of climate change and disaster risk reduction Programs to occur, it is essential to incorporate resilience into all priority areas identified in the Strategy for the Development of Samoa, with full monitoring and evaluation frameworks developed to measure the success (or otherwise) of identified outcome targets” in key sectors. The Situation Analysis also notes that despite some achievements, “there is limited knowledge in some sector planning committees, and it has usually been the MOF that incorporates climate and climate related issues into sector plans.” Further, while “Climate change and disaster risk reduction issues have been around for some time, they have largely been treated as an issue belonging to one particular ministry,” notably MNRE. Additionally, mechanisms to monitor the effectiveness 20 Situation Analysis: Policy, Institutional and Legal Framework for a Climate Resilient Samoa, GoS 2012. 39 of climate mitigating measures or disaster response plans from an economic development economic perspective have yet to be created. 4. In recognition of these issues, the CRIP embodies three main principles to guide interventions: (a) the PPCR (and related activities) should build upon the extensive work already undertaken and the wide experience that has resulted; (b) there is a need to ensure coordination and integration of PPCR (and related activities) with Samoa’s many ongoing and planned activities related to climate change; and (c) to the extent possible, coordination and implementation of the CRIP should be done through existing institutions. Institutional Framework 5. In light of this background, the proposed institutional arrangements to be supported under the ECR would have the following key features:  The Institutional Framework would provide for a programmatic approach to climate change adaptation and disaster risk reduction, to facilitate synergies among various projects and funding sources.  The Framework would be built around existing Government structures and processes, and provide opportunities for additional institutional strengthening and streamlining of procedures through other fund sources.  The arrangements would be able to accommodate and respond efficiently to the varying administrative and reporting requirements of different bilateral and multilateral donors.  Capacity constraints would be specifically addressed through both short-term arrangements and provision for longer-term and more sustainable capacity building.  Operational Guidelines would be prepared as part of the ECR project to provide a platform of administrative and operational arrangements to support a programmatic, multi-donor approach.  An initial M&E capability would be established in support of the longer-term need for a database and capability to assess what climate change and disaster risk activities are being undertaken, and the extent to which the threats posed by climate change are being adequately addressed. Project Oversight and Strategic Guidance 6. Steering Committee. The existing PPCR Steering Committee would be responsible for providing policy guidance and oversight of project implementation. Regular meetings would be held every six months, or more often as needed. Membership of the Steering Committee comprises the CEO-MOF as chair, together with CEOs from each of the sector agencies, the Civil Society Support Program Manager (CSSP), and representatives of the Chamber of Commerce, Samoa Umbrella for Non-Governmental Organizations (SUNGO), and Women in Business. The key functions of the Steering Committee would be to provide policy and strategic guidance, implementation oversight, and inter-sectoral coordination. The Steering Committee would be responsible for approving annual work programs and budgets for the project (see 40 below), which inter alia would detail district and community-level sub-projects, their budgets, and proposed implementing agencies. 7. Secretariat. The Climate Resilience Investment Coordination Unit (CRICU) of the MOF would provide secretariat functions for the Steering Committee. The functions of this unit would be to prepare documentation and the agenda for Steering Committee meetings, and coordinate the follow-up of directions from the Steering Committee. The CRICU would draw heavily upon project reports and related information to be provided by the Program Management Unit (PMU) (see below). To the extent the CRICU coordinates the flow and accountability of funds for climate change, it is well placed to monitor the degree to which climate resilience programs are reflected in annual agency and sector plans. Project Execution 8. The Ministry of Natural Resources and Environment (MNRE) would be responsible for day-to-day oversight of the Program Management Unit (see below). This function is premised on the need for MNRE to maintain both a technical leadership role in climate change adaptation, and the capacity to oversee the extent to which investment plans and programs are adequately addressing the development challenges posed by climate change. That said, the institutional framework to be supported under the PPCR would seek to further encourage and support sector agencies to internalize climate change as an important dimension to be incorporated and monitored in their regular sector planning and investment programs. Placing the PMU under the oversight of MNRE would facilitate the clearance process for sub-projects while also providing for a more comprehensive overview by MNRE of the scope of implementation of CIM Plans.21 Over the longer term, it is envisaged that the experience gained in executing projects through the PMU would strengthen the capacity of MNRE to better integrate and attract support from various donors for MNRE programs, while having the in-house expertise to administer financial management, procurement, and reporting requirements of different funding sources. The proposed Institutional Framework would also seek to develop an M&E capacity in MNRE to provide a database and capability to assess what climate change and disaster risk activities are being undertaken, and the extent to which the threats posed by climate change are being adequately addressed. Project Management 9. A Project Management Unit (PMU) would be established with the capacity to administer the implementation of multiple externally funded projects supporting climate adaptation and disaster risk reduction. Initially, it would administer funding from the ECR project, the Adaptation Fund, and the envisaged funding from GEF-LDCF. To address immediate capacity constraints, it is proposed that key staff for the PMU would be externally recruited, possibly 21 Coastal Infrastructure Management Plans (CIMs) were undertaken in two phases through World Bank-assisted projects—SIAM 1 from 2000-03 and SIAM 2 from 2004-07. The CIM Strategy was originally prepared in 2000 and revised in 2006 to include specific reference to climate change-related issues. In particular the predicted hazard zones were reviewed against the NAPA data (2005) and the Climate Risk Profiles (2007), and reference was made to expected land use impacts from more frequent and intense cyclone events. 41 through hiring of a firm that would provide the staff. Moreover, to accelerate project start-up and accommodate different financial management, procurement, and reporting requirements, it is proposed that each project managed by the PMU would initially need to provide for its own technical specialists and logistical requirements. It is envisaged, however, that through the assignment of counterpart staff and/or locally hired staff (also supported through various projects), sufficient capacity could be established within three to five-year time frame to enable some projects to co-fund shared specialist positions. 10. The proposed staff for the ECR project to be provided by a firm under a management services contract would comprise a Project Manager, Procurement Specialist, Financial Management Specialist, Environment Specialist and Monitoring and Evaluation Specialist. The Project Manager and Financial Management Specialist would be funded for the five years of project implementation, while the Procurement, Environment and M&E Specialists would be full time during the first year and work periodically thereafter. The arrangement will be re-assessed at mid-term, or sooner if deemed necessary. Government counterpart staff would be assigned to support project management, financial management and M&E functions. An M&E Data Processor would also have to be hired for the duration of the project. Some three person-years of short-term technical assistance (coastal engineer, coastal geomorphologist, climate change specialist, ecosystems specialist, and a GIS specialist) will also be provided separately from the management services contract to support the revalidation of the CIM Plans and prioritization of sub-projects (including analytical work) based on those Plans. The project will also provide for technical backstopping for sub-project implementation, and provide logistical support for the PMU. Project Implementing Agencies 11. As discussed below (see Implementation Arrangements), the Coastal Infrastructure Management Plans would provide the main planning framework through which district and community-based sub-project investments and activities would be supported. Larger sub- projects would, however, be implemented by the responsible sector agencies, smaller projects by Village Council CIM sub-committees supported by CSOs. Based on an indicative matrix of activities identified from the CIM Plans before revalidation, key sector agencies expected to be involved in project implementation would be MNRE, MWCSD, Ministry of Agriculture and Fisheries, the Land Transport Authority, and the Samoa Water Authority. The project will not undertake works that are already part of the normal budgeted responsibilities of these agencies. For small community-based sub-projects, the CSSP would be used to contract with appropriate CSOs following well-established procedures. As discussed further below, the Steering Committee’s approval of the Annual Work Program and Budget for the project would be the basis on which MOF would release funds to the respective implementing sector agencies or to the CSSP. Implementation Arrangements 12. Phasing. The project would be implemented over five years and encompass 16 districts and some 99 communities. It would complement the support being provided under the Adaptation Fund for the other 25 districts in the country. To facilitate project start-up, activities 42 would initially be focused on the eight contiguous districts associated with the planned upgrading of the Apia-Airport road to be supported under the World Bank/PPCR assisted West Coast Road project. The goal would be to assist communities in undertaking investments and activities that would contribute to improving their resilience to climate change, while also providing synergies with the investment in the airport road upgrade. Support for the other eight districts would be phased in as CIM Plans are updated. 13. Implementation Plan Framework. The CIM Plans initially prepared in 2000 and updated in 200622 provide the planning framework for sub-project prioritization and support. CIM Plans are available for all districts and communities. While in need of revalidation, they provide a solid basis for providing support responsive to community-identified needs. The 2006 updating of the CIM Strategy included more direct references to climate change and provided more direction for how adaptation strategies could be incorporated into the CIM Plans. Linkages to disaster risk management were also strengthened with the requirement that CIM Plans include consideration of village preparedness, response and recovery actions. As part of project preparation, the CIM Plans for the initial eight districts have been prioritized and costed as a basis for developing overall project costs. A first step in implementation would be the revalidation of those priorities with the districts and communities concerned. Project Management, Work Programming and Budgeting 14. The Project Management Unit (PMU) would, in the first instance, be responsible for the revalidation of CIM Plans and the prioritization of investments in consultation with communities. The PMU would then develop work programs and budgets based on those Plans, and submit them to the Steering Committee for approval. The work program and budget documents would identify the proposed implementing agency based on the following criteria: (a) only sub-projects costing