Due Diligence Report February 2015

VAN: Port Vila Urban Development Project

INVOLUNTARY RESETTLEMENT IMPACTS FOR THE GEORGE KALSAKAU DRIVE

Prepared by Ministry of Infrastructure and Public Utilities (MIPU), Government of Vanuatu Bank

for the Asian Development Bank.

This due diligence report is a document of the borrower. The views expressed herein do not

necessarily represent those of ADB's Board of Directors, Management, or staff, and may be

preliminary in nature. Your attention is directed to the “terms of use” section of this website. In preparing any country program or strategy, financing any project, or by making any designation

of or reference to a particular territory or geographic area in this document, the Asian

Development Bank does not intend to make any judgments as to the legal or other status of any

territory or area.

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GOVERNMENT OF VANUATU

PORT VILA URBAN DEVELOPMENT PROJECT

DUE DILIGENCE REPORT

Project Number: 14

Asian Development Bank Loan No.2832-VAN (SF)/G0275-VAN/G0276-

VAN

INVOLUNTARY RESETTLEMENT IMPACTS

FOR THE GEORGE KALSAKAU DRIVE

27 February 2015

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Project Number: 14

Republic of Vanuatu: Port Vila Urban Development Project

Financed by:

The Asian Development Bank

The Australian Government Department of Foreign Affairs & Trade (DFAT)

The Government of Vanuatu

Prepared By: Vanuatu Project Management Unit (VPMU)

For: Ministry of Finance & Economic Management (Executing Agency) Ministry of Infrastructure & Public Utilities (Key Implementing Agency) Public Works Department (Key Implementing Agency) Department of Environmental Protection & Conservation(Key Implementing

Agency)

NAME OF PROJECT PORT VILA URBAN DEVELOPMENT PROJECT

REPORT TITLE DUE DILIGENCE REPORT (DDR)

CONTRACT REFERENCE VAN005

DATE 27 FEBRUARY 2015

Noti e

This report was produced by VPMU for the Ministry of Finance & Economic Management (MFEM) (the

Executing Agency (EA), Ministry of Infrastructure and Public Utilities (MIPU)(Implementing Agency

(IA), Public Works Department (PWD)(IA) and the Department of Environmental Protection &

Conservation (DEPC)(IA) for the specific purpose of the Due Diligence Report of the Due Diligence

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Report is to describe the process for establishing the resettlement impacts and outcomes upon

George Kalsakau Drive .

This report a ot e used a perso other tha the MIPU’s e press per issio . I a eve t VPMU accepts no liability for any costs, liabilities or losses arising as a result of the use of or reliance

up the contents of this report by any person other than the MIPU and the project donor agencies, the

Asian Development Bank and DFAT.

Do u e t Histor

JOB NUMBER: VAN005

DOCUMENT REF:

DUE DILIGENCE REPORT FOR THE PORTVILA URBAN

DEVELOPMENT PROJECT

0 Initial issue VPMU PCM 27/02/15

Rev Purpose /

Description Originated Checked Reviewed Authorised Date

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ABBREVIATIONS

ADB…………………………………………………………………………... Asian Development Bank

APs………………………………………………………………………………………Affected Persons

CBD…………………………………………………………………………….Central Business District

CLC…………………………………………………………………….. Community Liaison Committee

CLO…………………………………………………………………………..Community Liaison Officer

CP…………………………………………………………………………………...Communication Plan

DFAT……………………………………………………….. Department of Foreign Affairs and Trade

DSCD……………………………….. Design Supervision and Capacity Development (Consultant)

EA……………………………………………………………………………………... Executive Agency

GKD………………………………………………………………………………George Kalsakau Drive

GRM……………………………………………………………………Grievance Redress Mechanism

IA………………………………………………………………………………….. Implementing Agency

Km………………………………………………………………………………………………..Kilometer

MIPU………………………………………………………...Ministry of Infrastructure & Public Utilities

NZAID…………………………………………. New Zealand Agency for International Development

PPTA………………………………………………………..Project Preparatory Technical Assistance

PSC………………………………………………………………………... Project Steering Committee

PWD…………………………………………………………………………...Public Works Department

PVUDP…………………………………………………………Port Vila Urban Development Project

PVM…………………………………………………………………………………Port Vila Municipality

DDR……………………………………………………………………………….. Due Diligence Report

DSCD…………………………………………………Design, supervision and capacity development

RP……………………………………………………………………………………...Resettlement Plan

SPS…………………………………………………………………………Safeguard Policy Statement

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VPMU………………………………………………………………Vanuatu Project Management Unit

VTIP Vanuatu Tourism Infrastructure Project

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CONTENTS

EXECUTIVE SUMMARY……………………………………………………………………………… ..7

I. INTRODUCTION ………………………………………………………………………………………8

A. Background ……………………………………………………………………………………………8

B. Description of the Overall Project……………………………………………………………………9

C. Description of GKD sub-project…………………………………………………………………… 10

II. METHODOLOGY…………………………………………………………………………………….12

III. SCOPE OF LAND USE ON GKD ………………………………………………………………...12

A. Description of Existing Corridor along GKD…………………………………………………… ...13

B. Description of Private Properties along GKD…………………………………………………......15

C. Temporary Effects During Construction and Mitigation………………………………………….16

D. Long-term Effects After Construction………………………………………………………….......16 IV. SOCIOECONOMIC INFORMATION……………………………………………………………...16

A. People and Communities along the sub-project Road……………………………………….. ...18

B.Impact on People and Communities along the Sub-project Road………………………………18

C. Project Impacts on Vulnerable Groups……………………………………………………………18

D. Gender and Resettlement………………………………………………………………………......19

V. INFORMATION DISCLOSURE, CONSULTATION AND PARTICIPATION………………….19

A. Project Stakeholders………………………………………………………………………………...19

B. Consultation and Participation……………………………………………………………………...19

V. GRIEVANCE REDRESS MECHANISM………………………………………………………......21

A. Monitoring…………………………………………………………………………………………….22

FIGURES

Figure 1: Location of George Kalsakau Drive………………………………………………………..11

Figure 2: Road network and drainage systems of the George Kalsakau Drive…………………..12

Figure 3: Private leases (Lots 30 & 31) currently not in PVUDP scope of work………………….13

Figure 4: Caravan trailer sitting in a parking space at the SW corner of GKD……………………15

TABLES

Table 1: Leasehold Titles along GKD…………………………………………………………………14

Table 2: List of businesses located along the Sea Front which will not be affected

by the George Kalsakau Drive sub-component works……………………………………17

Table 3: Consulted Business and Property Owners along the GKD………………………………19

Table 4: Procedures for resolving grievances………………………………………………………..22

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EXECUTIVE SUMMARY

Project Scope

The Port Vila Urban Development Project (PVUDP) has five outputs. The George Kalsakau

Drive (GKD) sub-component falls under Output 1: Government has improved the road network

and drainage system in greater Port Vila. This Due Diligence concerns the works to be carried

out by Port Vila Urban Development Project (PVUDP) over a total length of approximately 289

meters constituting the road, parking, footpaths, and associated works at GKD and the two

unnamed access lanes that enter GKD from Lini Highway in the Seafront Precinct of Port Vila.

Key Survey Findings

No section of private lease along the GKD will be affected by the road network upgrading and

the drainage systems and associated facilities. A determination has been reached that 57

formal businesses and 101 handicraft vendors in the area will not experience net negative

financial impacts due to temporary construction works or due to permanent design changes

intended to facilitate foot and vehicle traffic in the area.

The scope of works to improve the road network, drainage, parking and footpath has been

affected by the late notification that Lots 30 and 31 along the GKD have private leases over part

of the road and thus this section has been excluded from the scope of this subproject (Figure 2).

It is intended that separate discussions between the Government and the lessees will occur

concurrently with the construction works with the expectation that the affected scope may be

included at a later stage either as a variation to the existing contract or under a separate

subproject. These negotiations will be undertaken consistent with the Project Resettlement

Framework.

Implementation of this sub-component of the PVUDP will be positive for tourism and economy

of Vanuatu.

Entitlements

No other entitlements are expected for the works to be carried out on the GKD.

Recommended Actions

The implementation for the sub-project area will provide positive impacts for the tourism industry

and people of Port Vila. The road design is within the road corridor of public land and it is

recommended for approval to proceed.

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I. INTRODUCTION

A. Background

1. Australian Aid (DFAT) and Asian Development Bank (ADB) are assisting the Government of

Vanuatu (GOV) to improve urban infrastructure and services in Port Vila urban area and the peri

urban areas. This Due Diligence Report (DDR) was prepared to assess possible negative

impacts, if any, resulting from the subproject and identify mitigation measures to avoid these

impacts. In addition, the DDR includes the results of screening for possible land acquisition

impacts of planned upgrade of the existing road network and drainage systems within the

existing land for the GKD.

2. The Asian Development Bank (ADB) Safeguard Policy Statement (2009)(SPS) Involuntary

Resettlement Requirements apply to all ADB-financed projects and their components,

regardless of the source of financing. It also covers involuntary resettlement actions conducted

by the borrower/client in anticipation of ADB support. The policy is triggered when a project

causes physical and economic displacement resulting from (i) involuntary acquisition of land or

(ii) involuntary restrictions on land use or on access to legally designated parks and protected

areas. Physical and economic displacement may be full or partial, temporary or permanent.

3. The objectives of ADB’s Involuntary Safeguards are as follows:

(i) to avoid involuntary resettlement whenever possible;

(ii) to minimize as much as possible by exploring project and design alternatives;

(iii) to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative

to pre-project levels;

(iv) to improve the standards of living of the displaced poor and other vulnerable groups.

4. Recognizing that physical and /or economic displacement can lead to improvement,

especially of poor and vulnerable groups, the priority is to avoid involuntary resettlement

whenever possible. For this purpose, at the earliest stage of the project preparation process,

ADB carries out a project/subproject screening and categorization. This Screening and

categorization is undertaken to (i) reflect the significance of potential impacts or risks that a

project/subproject might present; and (ii) identify the level of assessment and institutional

resources required for the safeguard measures; and (iii) determine disclosure requirements.

Due diligence assists in this process by (i) determining the land requirements of the project; (ii)

whether these land requirements will be satisfied through involuntary restrictions on land use

and access;(iii) measuring the extent and severity this taking and restrictions and more

importantly, its impacts on people or related to the land and their immovable assets and

activities on the land, and (iv) identifying the appropriate instruments to mitigate these impacts.

5. The SPS has 12 policy principals on voluntary resettlement. Principal 8 directly applies to this

project, whereas a Resettlement Plan (RP) or due diligence report (DDR) with necessary

provisions is prepared to mitigate potential involuntary, and additional benefits impacts. The 12

principles are: (1) screen early and assess resettlement impacts; (2) carry out consultations with

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APs and develop a grievance redress mechanism; (3) Improve/restore livelihoods of Affected

Persons (APs) through land-based strategies, replacement of lost assets, compensation at

replacement as cost, and additional benefits, as appropriate; (4) provide appropriate assistance

to physically displaced APs; (5) improve living standards of poor APs and other vulnerable

groups; (6) develop transparent procedures for negotiations; (7) provide assistance and

compensation to non-titled Aps for loss of non-land assets; (8) prepare settlement Plans to APs

of due diligence reports (DDRs), with necessary provisions; (9) disclose RPs to Aps and other

stakeholders and document the consultation process; (10) conceive and execute resettlement

as part of the project; (11) deliver entitlements to APs before their physical or economic

displacement; and (12) monitor and assess resettlement outcomes.

B. Description of the Overall Project

6. The Port Vila Urban Development Project (PVUDP) is an urban renewal project. It includes

the improvements of road network and associated infrastructures such as footpaths, street

lightings and signboards and improvement of drainage system in Port Vila. The project has five

outputs. The George Kalsakau Drive (GKD) sub-component falls under Output 1. The five

outputs area as follows:

Output 1: Government has improved the road network and drainage system in greater

Port Vila

Output 1 will: (i) rehabilitate and upgrade approximately 25 km of urban roads including

drainage, footpaths, street lighting, road furniture and signage, and relocation of some

electricity poles, telecommunication pits, etc. and (ii) upgrade and augment storm water

drainage systems in 5 flood-prone watersheds with a combined area of about 7 square

kilometers. The drainage assets to be provided by PVUDP comprise 25 km of pipe

drainage (including road storm water drainage systems) and 8 km of open drains.

Output 2: Government has improved the sanitation system in greater Port Vila.

Output 2 will improve the disposal and treatment of sludge from domestic and commercial

septic tanks by (i) improving the management of the privately operated sludge collection

and disposal system and (ii) construction of a sludge treatment plant (STP) and disposal

facility.

Output 3: Central area and settlement communities use improved hygiene facilities.

Output 3 will (i) establish seven multi-purpose, multi-user sanitation facilities in villages and

peri-urban settlements; (ii) upgrade, rebuild, or refurbish three public toilets in the city

centre and at major publicly owned sporting facilities; and (iii) involve women in site

selection and design of sanitation facilities and maintenance activities.

Output 4: Government agencies and community and user organizations have the

capacity to effectively and efficiently manage sanitation, roads and drainage systems.

The project will design and implement training programs to develop capacity and awareness.

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Output 5: Efficient project management services are provided.

Output 5 will provide the necessary technical support and advisory services to the

executing agency and implementing agencies in implementing the project efficiently. The

Design Supervision and Capacity Development (DSCD) Consultant will perform these

functions including the supervision of the all resettlement matters.

7. The Due Diligence Report (DDR) was prepared for the works to be carried out by the Port

Vila Urban Development Project (PVUDP) over approximately 289 meters of George Kalsakau

Drive (GKD) and three unnamed access lanes that enter the GKD from the Lini Highway in the

Seafront Precinct of Port Vila. The scope of works include extension of road carriageway,

rehabilitation and reduction of existing public parking lots, rehabilitation of drainage network,

construction of sediment traps at strategic points, construction of footpaths and associated

works in the subproject site.

C. Description of the George Kalsakau Drive Sub-project

8. The GKD is located at the Seafront Park in the heart of Port Vila Central Business District

(CBD) of Port Vila, covering a total length of approximately 289 meters constituting the road,

parking, footpaths and associated facilities. The GKD is being redesigned to improve the space

for the pedestrians and buildings opening onto the Seafront Park. The park is a very popular

and well used open green space in the heart of the Central Business District. It is used for a

wide range of activities and events and is an important social gathering place for the locals and

tourists alike. Sea Front Park is also an important commercial hub including the cafes,

restaurants, handicraft market, water sport activities and other sea based tourism operators as

well as a children’s playground.

9. The existing road and drainage networks along the GKD are located on public land which has been reclaimed in the early 1970s while private properties occupy the leeward side between the GKD and the Lini Highway.

10. The road surface of the GKD has deteriorated due to the poor maintenance of the carriage

way and drainage system. The frequent rainfall in Port Vila has caused drainage pipes to clog

which has resulted in flooding on the GKD. This badly reflects the ill maintained drainage

system. The flooding is also a major problem on the roads during the rains. The debris, silt and

grit pose a problem to the urban drainage. Most of the storm water ends up in Port Vila Harbour

either as surface water run-off or through the existing drainage pipes.

11. Also, the drainage system of GKD is the receiving hub of all storm water from the Lini

Highway. Survey data has revealed that most of the outfalls have adequate capacity across the

park to the sea wall.

12. Moreover, there are 109 existing car parks along the GKD, 47 primary businesses that open

onto Lini Highway and with their back onto GKD. An additional 10 formal businesses and 101

handicraft vendors also operate inside the park. During periods, when there is tourist boat

arrival in Port Vila and social events at the Sea Front Park, the number of vehicles on the GKD

exceeds the parking areas available for public use. Some of total parking usage is recreational

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parking with the remainder classed as business parking use by customers and employees of

nearby businesses. During tourist boat arrivals in Port Vila and when social events are held at

the Seafront Park, the number of vehicles on the GKD exceeds the parking areas available for

public use.

13. Beca International Consultants Ltd (Beca) prepared the design for the new Seafront Precinct under a separate contract with the NZAID Tourism Infrastructure Project (VTIP) and subsequently provided to PVUDP. Two of the seven design sheets are shown in Figure 1 as those two sheets cover the PVUDP works of GKD. PVUDP is to tender and construct the GKD roadway, parking, and temporary footpaths indicated in Figure 1 while leaving the reminder of the Seafront Precinct design for the VTIP to tender and construct separately. The extent of the PVUDP works is outlined in heavy white area in Figure 1 below. The heavy red colour indicates the existing buildings along the leeward side the GKD. The yellow are indicated the area to be excluded from the scope of works, because the land is currently under private lease. The area indicated in green will only include the drainage and no road works.

Figure 1. Location of George Kalsakau Drive

14. The existing buildings along GKD generally face on to Lini Highway and only few make use

sea front park edge. The project provides an opportunity to improve the pedestrian environment

along the edge for GKD and encourage more business to open out on the sea front park in the

future.

15. The pavement surface of GKD and the foot paths is proposed to be concrete due to the high

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use of this area for private, commercial and social activities.

Figure 2: Road network and drainage systems of the George Kalsakau Drive

II. METHODOLOGY

16. This due diligence assessment was conducted through consultations and review of secondary data. Interviews and discussions were held with owners of buildings between the GKD and the Lini Highway, Clerk of the Port Vila Municipal Council, Surveyor General and the Director of Lands. Existing survey maps of survey boundaries of the properties along the GKD and available lease documents were also reviewed by the Consultants during the preparations of the DDR. Moreover, site visits along the Seafront Precincts were conducted to inspect the existing road network, drainage system, footpath, street lighting and signage boards.

III. SCOPE OF LAND USE ON GEORGE KALSAKAU DRIVE

17. The scope of works to improve the road network, drainage, parking and footpath has been

affected by the late notification that Lots 30 and 31 along the GKD have private leases over part

of the road and thus this section has been excluded from the scope of this subproject (Figure 2).

It is intended that separate discussions between the Government and the lessees will occur

concurrently with the construction works with the expectation that the affected scope may be

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included at a later stage either under a separate subproject or a variation to an existing contract.

These negotiations will be undertaken consistent with the Project Resettlement Framework.

18. Notwithstanding, a substantive portion of the works can be completed without affecting the

overall intent of the works. No other entitlements are expected.

19. The two cases of land acquisition are the only issues that arise directly from the proposed

GKD sub-component works program (Lots 30 and 31). Similar issues may arise from PVUDP

works to be carried out later on the Lini Highway side of the same properties. Resolving those

issues may also require modifying the road and footpath designs to avoid land acquisition

issues.

Figure 3: Private leases (Lots 30 & 31) currently not in PVUDP scope of work

A. Description of Existing Corridor along GKD

20. The GKD has a total overall length of approximately 289 meters constituting the road,

parking, footpaths and includes the two unnamed access lanes that enter GKD from Lini

Highway in the Seafront Precinct of Port Vila. The width of the road excluding parking lots at the

GKD is approximately 6.2 meters or 3.1 meters on each sides of the road from the centerline.

The existing corridors do not encroach on any of the existing private and public (municipal)

properties. The construction-phase activities will consist primarily of existing roadwork

016

029 018 03 043

030

031

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replacement and up grading, excavation replacement and upgrading of drainage structures,

footpath replacement and associated lighting and road signage within the existing road corridor

21. The buildings located along the east side of the existing road corridor of GKD are on private plots. Thus, lands occupied by existing buildings on the east side of the GKD are outside of the existing road corridor. The area to the west of GKD is public land administered by the Port Vila Municipal Council. 22. The GKD design was prepare by Beca International Consultants as part of the Vanuatu Tourism Infrastructure Project (VTIP) and will be constructed by the PVUDP. The road network design is based on the existing width and length of the road. There are no modifications made to the design by the PVUDP. The proposed works do not significantly alter the existing levels or drainage structure hence only upgrading and refurbishing of the system is proposed at this time. The road design is within the existing road corridors and it does not encroach onto any private properties on the east side of the GKD. 23. The full list of those leasehold plots, their status, use and the name of lessees appears

below.

Table 1: Leasehold Titles along GKD

# Title Number CLASS LESSEE REMARKS

1 11/OD21/029 Residential Basilea Ltd.

2 11/OD21/018 Commercial Societe Civile de Realisation

3 11/OD22/003 Commercial Babque Indosuez Vanuatu Transfer to Bay Development Ltd.

4 11/OD22/043 Commercial Balande Vanuatu Transfer to Societe de Service Petroliers

5 11/OD21/063 Lease not registered

6 11/OD22/056 Commercial Southene Holdings Ltd. Sublease

7 11/OD22/062 Commercial Societe Russet Freres Ltd. Sublease

8 11/OD22/005 Commercial Shan Cheng Transfer to Arthur Shan

9 11/OD22/034 Commercial Societe d'Invertisement du Pacific Sud

Transfer to Deimos Ltd.

10 11/OD22/027 Commercial Leong Jean Patiste et Wong Regina

Transfer to HP Invest Ltd. Mortgage: WPC

11 11/OD22/028 Commercial Wu Ke Luong

12. 11/OD21/030 Concrete Road –Private

Basilea Ltd. Registered 75 year lease over existing right of way to Basilea

13 11/OD21/03 Private-Commercial

Basilea Ltd. Registered 75 year lease over existing right of way to Basilea

24. There are no houses, structures, privately owned tree crops and economic activities that will

be adversely affected as a result of these works. There are no non-titled persons within the

construction area.

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B. Description of Private Properties along GKD

1. Plot 29 and 30 (BP House)

25. Description: Refer to Figure 3, above. This is a commercial premise with a loading bay facing the works site. The same lease also has lease over Lots 30 and 31, which has currently been excluded from the scope of works under this project which will not directly affect access to their business. However, it is proposed that further consultations and negotiations will be undertaken with this lessee about the following works, and if successful, it may be included in a subsequent subproject (through either a new contract or contract variation). 26. It is necessary to defer the scope of works associated with Lot 30 under the PVUDP until

negotiations have been finalized with the lessee. For detailed plans, refer to Figures 1 and 2

above.

27. Mitigation Measures Adopted:

a. Exclude the above works associated with Lot 30 items 25 (a) and (b) of works from the current subproject scope

2. Plot 18 (Jungle Café)

28. Description: Refer to Figure 3 above. This is another private establishment facing the northwest end of the GKD. a. An existing private footpath and stairs to the top floor of this building encroach on and prevent access on the SE side of the building at the access road entering GDK. The stairs are well outside the lessee’s cadastral boundaries, but the stairs and footpath itself both appear to have been constructed recently by the lessee. b. The sub-component design calls for renewing the public footpath but then stopping the works at the stairs and footpath will be avoided and excluded from the scope of works. The stairs and footpath will not affect the pedestrian thoroughfare and is therefore determined that the impacts on these private properties can be avoided. 29. Mitigation Measures Adopted: a. Avoided the impacts on private parking, footpath and stairs as part of the subproject works

3. Pink Food Caravan

30. Description: An abandoned caravan food trailer sits in a parking space at the SW end of GKD (Figure 4). The owner and potential permit status are not yet known.

31. Mitigation Measure Adopted:

Figure 4. Caravan trailer sitting in a parking space at

the SW corner of GKD.

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a. The Government will search for and ask the owner to remove the trailer. If this fails, the trailer

will be removed by the Government to a secure location for owner’s collection

C. Temporary Effects During Construction and Mitigation

32. GKD is likely to be closed intermittently for approximately four months with partial access provided along either completed or yet to be started sections. A traffic management plan and it comprise of pedestrian crossings, signage, parking restrictions, traffic signals and disabled facilities. Access to the park will be hindered and all available parking will be lost during construction. Both access to the park and the parking are “common property resources.”

33. It has been determined that closing of GKD will not pose a financial problem for businesses in the area and thus will not have resettlement impacts. This was based on the consultations with the businesses and tenants of private buildings along the GKD that during construction, parking areas along the Lini Highway will be used. The alternate parking will be provided along Lini Highway at the existing parking lots during construction. Alternatively, the best mitigation measure would be to close off and construct only one half (north/south) of GKD at a time.

D. Long-Term Effects after Construction

34. The long-term effect of construction of the GKD based on the design will be an improved

road network and drainage system, increase the area of footpath and associated lighting and

road signage within the existing road corridor, raise spend tables for people to cross and to slow

traffic

35. Some of total parking usage (both present and future) would be classified as “recreational”- with the remainder classed as “business” parking- that is parking used by customers and employees of the nearby businesses. Through consultations, the PVUDP has determined that there is adequate parking available elsewhere in the CBD at the proposed Center Point parking area in a level 6 level building. This is yet to be built. 36. The VTIP and PVUDP design expectations are that increased foot traffic to area businesses will make up for any reduction in vehicle traffic. The VTIP has determined through consultations with stakeholders/businesses that there is adequate parking available elsewhere in the CBD. As a result, GKD area businesses will not be impacted negatively by the permanent loss of parking. Stakeholder consultations undertaken as part of the two design works did not encounter objections. Thus, it has been determined that the loss of parking does not pose a financial risk to local businesses.

IV. SOCIOECONOMIC INFORMATION

A. People and Communities along the Subproject Road

37. The immediate goal and main effect of the sub-component is to modernize the vehicle

roadway and adjacent footpaths at GKD. This is expected to enhance the experience of local

tourists and local people who use the park and the shops and other businesses inside and

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adjacent to the park. Increasing the attractiveness of the area to tourists is expected to increase

tourism expenditures resulting in more jobs and more income for local people.

38. Local businesses will also be affected positively with the improvements of the road network

and the associated infrastructures such as footpath, street lighting, signage and drainage.

These improvements will encourage increased foot traffic to these commercial establishments

from tourists and local people alike due to easier access and safety. A list of those businesses

appears below in Table 2. The list includes a total of 158 businesses with 57 formal businesses

and 101 handicraft vendors:

a). Fourty seven (47) commercial professional services, and retail businesses with formal

storefronts along the Lini Highway into GKD. All the businesses that open in front onto Lini

Highway open in back onto the GKD;

b). Ten (10) formal store-front and signed businesses inside Seafront Park; and

c). One hundred and one (101) handicraft vendors inside the Seafront Park.

39. During consultations, consulted stakeholders cited that expected primary effects of infrastructure improvements on these businesses will be positive in the long run. Although there will be temporary disruptions in the short term, this will be addressed by the traffic management plan. There will also be positive impacts resulting in easier and safer access through permanent changes in vehicles and pedestrian traffic along the GKD. Table 2. List of businesses located along the Sea Front which will not be affected by the George Kalsakau Drive sub-component works. Store-Front Businesses between Lini Highway and Kalsakau Drive (subtotal 47)

1 Healthwise Pharmacy 25 Sound Centre

2 Rococo 26 datec

3 Pablik Laebri Blong Port Vila 27 UDP Bank

4 Cargo Traders 28 Kramer Ausenco

5 Downtown Internet 29 Sports Cover

6 Transam Vanuatu 30 Vanuatu Accountants

7 Tranquility Dive 31 Pacific Patroleum

8 Coongoola Criuise 32 Mall Pacifique

9 AJC 33 Raffea House

10 Duty Free Paris Shopping 34 AON Insurance Brokers

11 Pacific Bank 35 Phoenix

12 American Fashion 36 Westpac Bank

13 The Red Elephant 37 Island Property

14 Island Safaris 38 Island Property

15 B&P House 39 Pacific Passion

16 Roxy 40 Pandanus Art

17 Carla 41 ANZ Bank

18 Optometris 42 Go 4 Food

19 Jungle Café 43 Law Partners

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20 Summer – The Fashion 44 Jill’s Take Away Café

21 Florabunda 45 Monkey’s Ice Cream

22 The Tour Shop 46 Police Subpost

23 Pharmacie 47 Vanuatu Post

24 Frangipani Bay

Store-Front and Signed Businesses Inside Seafront Park (subtotal 10)

1 Win 1,000,000 VT Golf 6 Vanuatu Jungle Zipline

2 Nambawan Cafe 7 Holiday Inn

3 Gourmet Pizzas 8 Jo Ellen Tour

4 Big Blue Scuba & Tours 9 Agies Local Massage

5 Vanuatu Helicopters 10 Water Taxis (number unknown)

Handicraft Vendors inside Seafront Park (subtotal 101)

1-36 Handicraft vendors in three circular thatched buildings (36)

37-70 Handicraft vendors in rectangular building behind Nambawan Café (34)

71-77 Handicraft vendors under shelters behind rectangular building (7)

78-88 Handicraft vendors in tents along alley (11)

89-101 Handicraft vendors fronting alley near shore (13)

40. There are currently 107 parking lots in the GKD and the PVUDP design expectations cut are that the parking lots will be reduced to 78 and thus, increasing foot traffic to the area. Increase in business transactions will make up for any reduction in vehicle traffic. Through consultants analysis VTIP has determined that there is adequate parking available elsewhere in the CBD. As a result, GKD area businesses will not be impacted negatively by the permanent loss of parking. Stakeholder consultations undertaken as part of the two design works did not encounter objections. Thus, it has been determined that the loss of parking does not pose a financial risk to local businesses. B. Impact on People and Communities along the Subproject Road

41. In the long run the degradation of the environment will be minimized and sustainable transport will be promoted along the GKD. All forms of transport and infrastructure will be physically accessible by all road users, plus the spatial accessibility of the city will be improved for all modes of travel. The project will improve the infrastructures (e.g. road network and drainage system and associated facilities) which will have health benefits for the Port Vila community and businesses. 42. The negative impacts will be intermittent only during construction phase and this is being addressed by the traffic management plan. C. Project Impacts on Vulnerable Groups 43. The sub-component will have no negative impacts on the poor, Indigenous Peoples and/or ethnic minorities, or on other vulnerable groups. The project will improve access to the park and adjacent areas for disabled people, women, children and the aged.

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D. Gender and Resettlement Impacts

44. The sub-component has no differential gender or resettlement impacts (positive or negative) on women.

V. INFORMATION DISCLOSURE, CONSULTATION, AND PARTICIPATION

A. Project Stakeholders 45. The primary project stakeholders are the general public, tourists, businesses within and around the Sea Front Park, and relevant government agencies. The VTIP consulted stakeholder groups during the sub-component design through individual, group, and public meetings and surveys. Responses were then used in the sub-component design. Under the PVUDP, follow up consultations and review of secondary data were conducted. From these consultations, it was evident that the design consultants widely consult with the primary project stakeholders.

B. Consultation and Participation Activities Undertaken during Design Phase

46. A wider business consultation was conducted with the property and business owners along the GKD from 17 November 2014 (participants list below in Table 3) and was followed with individual tenants of the buildings again in early January 2015. These include a bank, petrol station, retail establishments, a café and an insurance company. All (or majority) of consulted businesses, were in support of the proposed infrastructure improvements on the subproject site. 47. In addition, the consultation was also conducted with four (4) property owners, four (4) government agencies including VPMU, DEPC, Department of Lands and Port Vila Municipality, DSCD and ADB officials at which time the discussions were centred on the identification of key stakeholders, location and status of the land used for the road and drainage infrastructure, and socio-economic concerns of the local people.

48. A one-on-one discussions were also held with ten (10) property owners covering the boundary of the project area (names listed in Table 3). These consultations have provided comments which are summarised in Table 3 below. Public consultations were held in November 2014. Interviews confirmed support for the infrastructure improvement by consulted business, government and public who have expressed their support for the upgrading of the road network and drainage systems. In addition, the Port Vila Municipal administrators have clearly stated their support for improving the existing infrastructure. Table 3 below provides the list of consulted businesses and property by PVUDP only. A separate consultation were undertaken by VTIP Table 3: Consulted Business and Property Owners Along the GKD

Name of Building & Business

Owner/Lessee/Manager

Contact Comments Solution

1. Paris Shopping

Mr. Regis Friess

7777648/24227

• No loss of parking area (?) as this is area for offloading

Loading bay required. Concrete to be replaced.

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Regis.Friess@igerpac.com.vu

goods for the shop. • Better to leave concrete road as it is private property • Have 3 land titles, the title for the building, the road and the petanque play ground.

VanGov to negotiate land acquisition

2. Ardomani Building

Paul & Sandra Phelan

7772360/22360 phelan@vanuatu.com.vu

• Problem with parking therefore need to keep off street parking free to unload goods

Loading bay provided

2. Center Point Fuel Station

Randall Vallete

7771372 rvallette@pacificpetrole.com

• Agree with proposal • Parking is not a problem for the company as vehicles only stop to refuel • Want quad bike to use GKD as it is safe to avoid traffic

Access to GKD available

3. Raffea House Geoffery Gee 7742272/22067 geoffgee@ggp.com.vu

• Agree for road & drainage improvement

4. Jills Cafe Jill & Greg 7713777 awayholiday@live.com

• Need access for unloading and load of stock to café besides the UNELCO transformer box

Loading bay provided

6. Aon Insurance (Vanuatu) Ltd

Aon 556785/23089 Bob.Sanders@aon.com

• Would like to be involved in the project contract work insurance • Who is constructing

No action

7. Westpac Banking Corporation

Pacific Vila Mall Bobo Dettkie

5580002/22084 hmitchell@stpac.com.au

• Agree with project proposal • Looking forward to see the project happen

8. ANZ Bank (Vanuatu) Ltd

ANZ 5543248/22635 Ashley.Karae@anz.com Georgette.Aru@anz.com

• Agree with proposed project • Need to advise customers on parking

Communications Plan to address customers

9. Real Estimate Agent

Caillard & Kaddour

Loic Bernier Managing Director M: 7743412 lbernier@ck.com.vu

• VanGov has negotiated with Caillard & Kaddour acquisition of lands on Lots 30 and 31

Noted

10. Ardimani Building

Paul Phelan • Paul is the owner of Ardimani Building who was contacted separately and his concerns was related to parking space for his customers.

Addressed in GPVTMP

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C. Consultation and Participation Mechanisms to be used during Construction Phase

49. The works contractor will provide prior written notice to the general public and to nearby businesses regarding schedule of closure of the work site.

50. Implementation of the project management will focus on government agency stakeholders with the aim of informing, obtaining decisions or agreement, and obtaining information through established communications mechanisms. Consultations will be treated as routine procedures through a Community Liaison Officer (CLO) at different times as follows: 1). General awareness consultation will be mainly to inform the communities and make awareness of the project scope; 2). Consultation on project road site communities which would involve a walk-through type consultation that would involve significant stakeholder consultation; and 3). Community consultations involving affected individuals.

V. GRIEVANCE REDRESS MECHANISM

51. A grievance redress mechanism (GRM) for social concerns during construction has been

developed:

52 During implementation, the VPMU and Contractor will have a designated staff member responsible for interacting with the GRM. The PMU’s lead will be the grievance focal point, and receive and address project related concerns, via the designated staff member. Concerns will be resolved first by the overall Project Manager, the VPMU, and the responsible government authorities.

53. During the construction period the contractor will be a key participant in the grievance redress process.

54. Any complaint will be recorded and investigated by the VPMU’s staff working with the Design, Supervision and Capacity Development (DSCD) Consultant and the contractor (as appropriate). A complaints register will be maintained as a Help Desk, and will show the details and nature of the complaint, the complainant’s name, the date and actions taken as a result of the investigation. It will also cross-reference any non-compliance report and/or corrective action report or other relevant documentation filed under that complaint.

55. When construction starts, a sign will be erected at all sites providing the public with updated project information and summarizing the grievance redress mechanism process including contact person details at the VPMU. All corrective actions and complaints responses carried out on site will be reported back to the VPMU lead. The VPMU will include the complaints register and corrective actions/responses in its progress reports to the ADB.

56. Throughout this process, the Ministry of Infrastructure and Public Utilities (MIPU) will always be available to hear public complaints and provide advice if the complainant feels that VPMU responses are not satisfactory.

57. On receipt of a complaint in any form (in person, telephone, written) the VPMU complaints officer will log the details in a complaints register. PMU will forward complaint to the project director and executing agency head within 48 hours. The DSCD will respond to the PMU within 1 week with advice on corrective actions to be taken. VPMU will review and find solution to the problem in consultation with village/island/state or traditional chief and relevant local agencies.

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Then VPMU will report back to the affected persons within another 7 days. If the complainant is dissatisfied with the outcome, or has not received advice in the allotted time period, he or she can take grievance to the national government. MIPU will refer matter to the State Law Office for review. The national/state authority will review the case and report back to the PMU who will discuss answers with the complainant about outcome. If unresolved, or if at any time the complainant is not satisfied, he or she can take the matter through the courts. Both successfully addressed complaints and unresolved issues will be reported to the ADB by the PMU.

Step Process Duration 1 Affected Person (AP)/ takes grievance to the Vanuatu

Project Management Unit (PMU)/DSCD /Contractor Any time

2 VPMU reviews issue, and in consultation with DSCD and contractor (if appropriate), then records a solution to the problem.

1 week

3 VPMU reports back to AP and gets clearance from complainant.

1 week

If unresolved 4 AP take grievance to relevant government agency for

resolution (Director General of the Ministry of Infrastructure and Public Utilities or MIPU)

Decision within 2 weeks

5 AP refers matter to State Law Office 2 weeks 6 National agency refers to an internal committee 4 weeks 7 National agency through reports back to relevant

government agency/AP 1 week

If unresolved or if at any stage and AP is not satisfied with progress AP can take the matter to appropriate state or national court. As per judicial system

Table 4: Procedures for resolving grievances

A. Monitoring Arrangements

58. Based on Communication Plan (CP), the Community Liaison Officer (CLO) will monitor all

activities associated with grievances by APs including the public and affected businesses. The

VPMU will maintain proper documentation of consultation process and keep relevant records of

complaints received during implementation and construction phase (resolved and pending

issues). A Help Desk within the VPMU will receive, record and respond to complaints and

grievances. The CLO will document the consultation and grievance resolution process. The

outcome of the negotiation process will be submitted to ADB and government.

59. The VPMU will prepare and submit semi-annual progress reports and submit to the Project Steering Committee (PSC) as part of project performance monitoring.