Solomon Islands: Road Improvement (Sector Project)

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Lessons

Achieving sustainability requires a consistent and long-term approach.

Significant steps have been taken to harmonize development partner assistance and support a sector-wide approach in the Solomon Islands’ transport sector. The Transport Sector Development Project (TSDP) and its assistance to the Ministry of Infrastructure Development (MID), through the central project implementation unit, provide a predictable medium-term source of finance via the National Transport Fund (NTF). It also ensures the use of government systems for procurement and other technical and safeguard procedures, as well as policies for planning, implementing, and maintaining all transport improvements within the framework of the agreed National Transport Plan (NTP). A wide range of measures will be needed to sustain government ownership, engage stakeholders, enhance MID’s access to competent staff, and institutionalize procedures for planning, implementation, maintenance, and monitoring daily MID processes.

Project Cycle Stage:

Preparation

Implementation

Continued consultant support and early and continuous government engagement are required to sustain improvements in transport-related organizational capacity in the Solomon Islands.

Sustained improvements in transport-related organizational capacity in the Solomon Islands will require continued consultant support, along with early and continuous government engagement to ensure relevance. Obstacles can be overcome, and the impact of capacity building can be improved by high-level client involvement as early as subproject preparation and execution. Selective external capacity building support focused on high priority needs such as (i) feasibility study; (ii) contract management; (iii) labor-based, equipment-supported maintenance program preparation, procurement, and supervision; and (iv) application of safeguards rather than across-the-board capacity building is likely to be beneficial. While constraints on transport agency performance may occur as a result of weakness in other areas of government, a proactive and competent transport agency would be better able to call for essential improvements.

Project Cycle Stage:

Preparation

Implementation

Sound technical, economic, social, and environmental procedures are required to effectively implement Solomon Islands’ NTP.

Sound technical, economic, social, and environmental procedures are essential for translating the NTP into worthwhile and fully supported investments. Proper engagement and communication with stakeholders is vital to ensure that the rationale and the processes are fully understood. A stronger country safeguard system, including guidelines on obtaining customary land for transport projects, is essential.

Project Cycle Stage:

Implementation

Stronger internal procedures ensure road maintenance quality and probity.

Quality control remains a weakness in road sector projects in the Solomon Islands. Funding must be provided to support critical maintenance-related activities, including progressive improvement of performance-based contracts, timely and appropriate supervision of maintenance contracts, and asset management planning to ensure proper forward planning of maintenance needs. Sound fiduciary procedures are needed to ensure that the quality and quantity of civil works, and the purchase of goods and services, are matched by proper financial records and approvals. Adequate travel budgets and efficient mechanisms at MID and the Ministry of Finance and Treasury are required to ensure MID staff regularly travel to the outer islands to inspect ongoing maintenance contracts.

Project Cycle Stage:

Preparation

Implementation

Developing a contracting industry will be more beneficial for the country in the long run.

Local communities may be encouraged to develop a contracting industry in the Solomon Islands. This could be more beneficial for the country in the long run, as it will help maintain roads in good condition while creating positive social outcomes. However, this will require adequate resources and effective government supervision. Greater accountability from central and provincial governments will also be needed to ensure value-for-money engagements with local contractors.

Project Cycle Stage:

Preparation

The Solomon Islands’ government needs to develop greater capacity to manage community relations and negotiate compensation for land and resources utilized.

Land acquisition for the Makira subproject was minimal and managed in accordance with the safeguard policy of the Asian Development Bank. In the future, greater government capacity will be needed to manage community liaison, identify affected persons, and manage the process of compensation to avoid community dissatisfaction.

Project Cycle Stage:

Implementation

A more reliable method for determining price contingencies is needed to better manage cost overruns due to exchange rate fluctuations.

The Makira encountered cost increases because of, among other reasons, the appreciation of the New Zealand dollar, the currency used in paying 65.17% of the Makira contract, against the US dollar. The cost overruns caused delays, as they required processing of the Second Road Improvement Sector Project, from which part of the deficit financing would come, before the Makira contract could be awarded. Building on this experience, it is important to find a more reliable method for determining price contingencies in future projects to better manage cost overruns due to exchange rate fluctuations.

Project Cycle Stage:

Preparation

Background

In 2006, Solomon Islands was still recovering from years of conflict (1999–2003), and confronted with 20% poverty incidence, poor human development, and high unemployment. Restoration of important infrastructure, revitalization of the economy, and provision of basic social services with a preferential focus on disadvantaged and rural populations were key strategies in the government’s National Economic Recovery, Reform, and Development Plan, 2003–2006.

Because of its extensive experience in the transport sector, the Asian Development Bank (ADB) was requested by the government to prepare the Road Improvement (Sector) Project. The project was approved by the ADB Board of Directors in August 2006 for a grant of $350,000. With ADB administering, it was cofinanced by the Australian government ($9.06 million equivalent at project-end), and the New Zealand government ($10.34 million equivalent at project-end). Overall, it sought to contribute to economic growth and poverty reduction by improving access to economic opportunities; promoting agricultural development; fostering market access, and facilitating domestic and international trade; generating income and employment opportunities; and improving access to public and social services.

The project had three components ─ road rehabilitation, road maintenance improvement, and project management and capacity building. At appraisal, the rehabilitation component was intended to cover 100 kilometers (km) of roads and 40 watercourse crossings. During project implementation, a strategic assessment identified the disadvantaged provinces of Choiseul, Makira, and Temotu as candidate sites because they had not previously received major investments. Further assessments showed the subprojects in Makira to be more economically viable and of greater relevance than those in Choiseul and Temotu. Covering only Makira, the project rehabilitated 57 km of gravel roads and 63 watercourse crossings. High-level bridges at stable upstream points were built to ensure connectivity of the entire road length.

A total of 86 km rural roads were restored to adequate condition through labor-based, equipment-supported (LBES) maintenance contracts. Of the unsealed roads maintained, 18.6 km were in Makira, 14.7 km in Temotu, 21.7 km in Malaita, and 31.1 km in Guadalcanal. Of the sealed roads maintained, 77.3 km were in Guadalcanal and 12.9 km in Malaita. The process for procurement and implementation of LBES maintenance contracts was established in 2008. Capacity building of national and community contractors for tendering, business management, and works supervision were held in conjunction with the rollout of the LBES program. By the project midterm review in July 2009, 9 LBES contracts were in place. At project completion, 39 qualified contractors had been trained to bid for maintenance contracts. An independent review of the LBES program was recommended and subsequently financed by the Australian Government at midterm.

Consultants at the project management and capacity building unit (PMCBU) devoted 40% of their inputs to capacity building and training of the Ministry of Infrastructure Development (MID) staff, national consultants, and the emerging community-based contractors. Capacity building was integrated into every project component over the 5-year implementation period, although relative to the MID, this was limited by the shortage and unavailability of staff, as at project completion, MID had 14 engineers compared to 2 at appraisal. MID institutional capacity strengthening was further constrained by the rapid staff turnover and limited procedures and systems within the ministry.

At completion, the project substantially achieved its planned outcomes. Access of rural residents in Makira to the market in Kira Kira, the provincial capital, has improved because of all-weather road connectivity. Average travel speed increased from 25 km per hour before the project to 45 km per hour after completion. Average travel time to the nearest clinic was reduced to 0.3 hours from 1.1 hours before the project. Makira commercial transport owners experienced a 71% increase in trips in the subproject area by mid-2012 over 2007, indicating a switch from boat to road transport and more frequent trips to the market and community centers, with highly probable but still unconfirmed positive impacts on the lives of Makira’s 12,000 people.

The project had the MID as executing agency. The PMCBU, led by the director of MID’s Transport Infrastructure Management Services Department, was responsible for day-to-day implementation.

Project Information

Project Name:

Road Improvement (Sector Project)

Report Date:

April, 2014

Main Sector:

Transport

Country:

Solomon Islands

Project Number:

39581

Report Type: