Tuvalu Project Notice - Strengthening Domestic Shipping Project


Project Notice

PNR 48591
Project Name Strengthening Domestic Shipping Project
Project Detail The project will replace the existing passenger and cargo ship Manu Folau, which is in an unserviceable state, with a reliable and safe ship. It will (i) help ensure safe and efficient transfer of people and goods; (ii) promote economic development, including through increased intra-regional cross-border trade; and (iii) help improve peoples livelihoods in the outer islands of Tuvalu, its capital, and neighboring countries (Fiji and Kiribati). The project will also rehabilitate port auxiliary infrastructure (fenders) and build the operation and maintenance capacity of the Ministry of Transport, Energy and Tourism to ensure the sustainability of the investment. Project Name Strengthening Domestic Shipping Project Project Number 54463-001 Country / Economy Tuvalu Project Status Approved Project Type / Modality of Assistance Grant Source of Funding / Amount Grant 0849-TUV: Strengthening Domestic Shipping Project Asian Development Fund US$ 30.00 million Strategic Agendas Environmentally sustainable growth Inclusive economic growth Regional integration Drivers of Change Gender Equity and Mainstreaming Governance and capacity development Sector / Subsector Agriculture, natural resources and rural development / Rural market infrastructure Transport / Water transport (non-urban) Gender Equity and Mainstreaming Effective gender mainstreaming Description The project will replace the existing passenger and cargo ship Manu Folau, which is in an unserviceable state, with a reliable and safe ship. It will (i) help ensure safe and efficient transfer of people and goods; (ii) promote economic development, including through increased intra-regional cross-border trade; and (iii) help improve peoples livelihoods in the outer islands of Tuvalu, its capital, and neighboring countries (Fiji and Kiribati). The project will also rehabilitate port auxiliary infrastructure (fenders) and build the operation and maintenance capacity of the Ministry of Transport, Energy and Tourism to ensure the sustainability of the investment. Project Rationale and Linkage to Country/Regional Strategy Tuvalu is categorized a fragile and conflict-affected situation and is one of the smallest and most remote Asian Development Bank (ADB) member countries. The country is home to 10,679 people. Tuvalu is more than 1,100 kilometers from Fiji. About 60% of the population is based in Funafuti (the capital), with the remainder spread among eight outer islands. Given its small land mass, archipelagic nature, and dispersed geography of distant atolls and the distance between them and key markets, the countrys economy and people primarily rely on the sea and maritime transport to trade and access goods and essential services. The only means of transport between Funafuti and the outer islands is by sea. The nearest island is 64 nautical miles from Funafuti while the farthest is 247 nautical miles away. Such distances are significant in terms of the type of ships needed to operate safely in the open ocean conditions that prevail in these latitudes, with long durations of voyages (up to several days) and high operating costs. The impacts of climate change affect ship operations in terms of adaptation, as rising sea levels limit the ability of passengers and cargo to access ships; and mitigation, given the need to reduce greenhouse gas emissions through lower ship emissions. Disasters triggered by natural hazards also affect shipping safety, as hostile conditions (high winds and large waves) cause safety issues for passengers and maritime structures. Impact Safe and efficient maritime transportation that helps increase climate and disaster resilience promoted Project Outcome Description of Outcome Connectivity of Tuvalus outer islands and intra-regional locations improved Progress Toward Outcome Implementation Progress Description of Project Outputs Existing passenger and cargo ship replaced Port auxiliary infrastructure (fenders) rehabilitated Operation and maintenance capacity strengthened
Funded By Asian Development Bank (ADB)
Sector Entertainment
Country Tuvalu , Polynesia
Project Value AUD 33,000,000

Contact Information

Company Name Ministry of Finance
Web Site https://www.adb.org/projects/54463-001/main

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