PORT DEVELOPMENT PROJECT

Sustainable and Climate-Resilient Connectivity Project (formerly Port Development Project)

The Sustainable and Climate-Resilient Connectivity Project will improve port operations in Nauru. The project will build a climate-resilient port in Nauru including a wharf, a berth pocket, and a breakwater at the port of Aiwo. It will also reconstruct port buildings, the container storage, and port security facilities. The project will support institutional reforms to strengthen the Port Authority of Nauru (PAN) for sound and efficient port governance and management. It will also establish a revolving fund to ensure sustainable port operations and maintenance (O&M). The project is aligned with the improved sustainability, resilience and quality of life of all of the Nauruan people, economy, and society. It will improve reliability, climate resilience and efficiency of Aiwo Port. The project has three outputs:

Climate proofed port infrastructure constructed. The project will construct new port infrastructure, including a wharf, a berth pocket, and a breakwater. It will also reconstruct port buildings, the container storage, and port security facilities. In parallel to the project, the government is liaising with JICA for the provision of port operations equipment under a bilateral agreement.
Sustainable operations and maintenance achieved. The government will establish a revolving fund exclusively for maintenance of the new assets constructed under the project. The fund will include three years of maintenance costs. It will be financed by the port revenue and government budget allocation. Overtime, the government contribution will decline as the port gradually achieves cost recovery by June 2023 supported by reforms.
Efficient port operations established. Under the ongoing transaction technical assistance (TRTA), the government and PAN will carry out port reforms including institutional strengthening, capacity development, tariffs restructuring, and engagement of the private sector in port operations.

The project is estimated to cost $79.59 million. This includes cost of the proposed civil works contract, supervision consultant contract, in-kind contributions by the government and physical and price contingencies. The in-kind contribution for the project includes cost of supply of aggregate and sand, salaries for counterpart staff, audit costs, taxes, and import duties. The government has requested a grant not exceeding $21.30 million from ADB’s Special Funds Resources (Asian Development Fund) to help finance the project. ADB will finance expenditures related to civil works and the supervision consultant services. The Government of Australia and the Green Climate Fund will provide grant cofinancing of A$18.00 million (equivalent to $14.08 million and $26.91 million respectively, to be fully administered by ADB. The cofinancing grants will finance expenditure related to civil works. The government has assured provision of any shortfall in the finances of the project. This is currently estimated at $17.30 million and will cover $7.70 million of the expenditure related to civil works, $6.60 million for additional physical contingencies, and $3.00 million of in-kind contributions.

Funded by the Asian Development Bank, Green Climate Fund, Australian Government (DFAT) and Government of Nauru.

JICA Port Equipment Donation – Economic Social Development Program (ESDP) Grant Aid to the Government of Nauru
Executing agency: Ministry of Finance (MOF)
Project monitoring and evaluation: Supervision Consultant CARDNO of civil works contractor China Harbour Engineering Company (CHEC)
Independent auditor of the Supervision Consultants (GHD)

Nauru: Sustainable and Climate-Resilient Connectivity Project (formerly Port Development Project) –
Sovereign (Public) Project | 48480-001

Sustainable and Climate-Resilient Connectivity Project (formerly Port Development Project) will improve port operations in Nauru by building a wharf, breakwater, and a berth pocket at Aiwo, reconstructing port buildings and the container storage area, and strengthening the institutional capacity of Port Authority of Nauru.

https://www.greenclimate.fund/projects/fp052

https://www.adb.org/projects/48480-003/main