The World Bank

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The World Bank
Development of a Pacific IslandsFisheries
Engagement Strategy
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World Bank - background

• Aims to fight poverty and help people help
  themselves and their environment by providing
  resources, sharing knowledge, building capacity
  and forging partnerships in the public and
  private sectors
• Provides low-interest loans, interest-free
  credits and grants to developing countries for
  investments in education, health, public
  administration, infrastructure, financial and
  private sector development, agriculture and
  environmental and natural resource management
• Founded in 1944, now owned by 187 member
  countries
• 10,000 staff in offices in over 100 countries

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World Bank Group

• The two main development bodies
• International Bank for Reconstruction and
  Development (IBRD) - aims to reduce poverty in
  middle-income and creditworthy poorer countries
• International Development Association (IDA) -
  focuses on poorest countries, also supports small
  island economies which are above the operational
  cut-off (US 1,165 GNI/ capita in FY 2011) but
  lack the creditworthiness needed to borrow from
  IBRD.
• Also includes
• International Finance Corporation (IFC)
  supports private sector development
• Several other specialised agencies

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World Bank in the Pacific

• The World Bank Group office in Sydney, Australia
  services Bank member countries in Timor-Leste,
  PNG and the Pacific Islands. Represents IBRD,
  IDA, IFC and other WBG agencies
• PI Bank member countries are FSM, Fiji, Kiribati,
  Marshall Islands, Samoa, Solomon Islands, Palau,
  PNG, Tonga, Tuvalu and Vanuatu. Timor-Leste is
  also included
• WBG has not historically supported the PI
  fisheries sector very much, but is now developing
  a fisheries engagement strategy in recognition of
  the economic importance of fisheries to the
  region

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Fisheries Engagement Strategy (FES)

• Will provide 3-5 year strategic guidance to the
  way the WBG supports sustainable development and
  management of fisheries in its PI member
  countries
• Includes both oceanic and coastal fisheries
  components
• Aims to use the Banks strengths in areas of
  policy development, economic analysis and
  leverage, synergies through partnerships and
  cooperation, knowledge products and
  inter-regional information sharing
• Must complement and enhance current national/
  regional strategies and ongoing/ planned
  fisheries activities without duplication

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Fisheries Engagement StrategyOceanic Fisheries
Component

• In regard to Oceanic Fisheries, the FES will
  propose
• Organisational/ institutional development of the
  Parties to the Nauru Agreement (PNA) Office
• Operationalisation of the PNA Vessel-Day Scheme
  (VDS) for tuna purse-seine fishery management
• Possible extension of the VDS (or other
  rights-based scheme) to tuna longline fisheries,
  especially in the Te Vaka Moana (TVM) member
  countries
• Specialised technical studies crew placement,
  labour mobility, investment opportunities/
  barriers, IUU, energy issues in industrial
  fisheries (some already done or started)

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Fisheries Engagement StrategyCoastal Fisheries
Component

• Guiding principles are
• Supporting national efforts to improve
  sustainable development and management of coastal
  resources
• Strengthening management at various levels
  policy, legislation, MCS, private sector and
  communities
• Development and use of economic incentives/
  disincentives that improve fishery management
• Promoting regional cooperation where this leads
  to economic gain or improved efficiency (e.g.
  harmonised management approaches,
  information-sharing, TCDC, collective bargaining,
  coordination of external relations)
• Consideration of non-fishery impacts (coastal
  development, climate change) and ecosystem issues

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FES Coastal Fisheries ComponentProposed Focus

• Proposed core activity under FES is rebuilding
  and restoration of sea cucumber (BDM) fisheries
• BDM fisheries drastically over-exploited and
  present significant management challenges in all
  PI countries
• Great economic potential at community and
  national levels, which justifies the funding
• Potential economic benefits from regional
  cooperation/ harmonisation of management
  approaches (a BDM cartel) and information/
  knowledge sharing
• Opportunity/ need for participation/ intervention
  at several levels government (policy, MCS),
  technical/ RD (e.g restocking), private sector,
  communities, civil society and NGO/ CBO
• BDM fishery restoration presents opportunity to
  demonstrate fishery management benefits more
  broadly

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FES Coastal Fisheries ComponentProposed
Structure

• Series of national sub-projects in interested
  countries, each with clearly defined goals, work
  programmes and financing arrangements
• Not all components need be replicated in each
  country or implemented at the same rate
  national programmes tailored to needs and
  capacity
• Brought together by an umbrella or coordination
  arrangement responsible for promoting regional
  cooperation and information exchange
• Regional component best carried out through
  existing regional fishery institution(s) rather
  than creating something new

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FES Coastal Fisheries ComponentAdditional
Considerations

• FES will not be restricted exclusively to BDM
  fishery restoration this is a core component
  but national sub-projects may identify additional
  needs/ priorities
• Need initial assessment of costs and economic
  benefits of proposed activities to justify
  funding (benefits BDM fishery restoration
  anticipated to be very significant in most cases)
• Requires partnership with agencies having
  relevant specialist knowledge and skills (e.g. in
  community outreach, BDM hatchery/ restocking,
  etc)
• Support to community-level activities should not
  be restricted exclusively to BDM fisheries, but
  encompass broader CBM/ EACFM interests

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Possible WBG FES funding opportunities

• WBG manages Trust Funds from various developed
  member countries, including Australia and New
  Zealand, which can be used to support smaller
  projects, studies and technical assistance
• Larger projects can be supported through IDA
  grants and credits. IDA credits are
  interest-free loans with repayments over 35 to
  40 years, including a 10-year grace period
• All PI Bank member countries except Fiji and
  Palau are eligible for IDA grants and credits
• Fiji, Palau and PNG are also eligible for IBRD
  loans Service fee of 0.75 p.a.

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IDA-16 indicative allocations (3 yrs starting
July 2011) (mn)
Country Grants Credits Total Comments
FSM 6 6 12 50/50 grants/ credits
Fiji 0 0 0 IBRD only
Kiribati 6 6 12 50/50 grants/ credits
Marshall Islands 10 0 10 Grants only
Palau 0 0 0 IBRD only
PNG 0 120 120 Credits only. Also IBRD
Samoa 0 25 25 Credits only
Solomon Islands 8 8 16 50/50 grants/ credits
Tonga 12 0 12 Grants only
Tuvalu 5 5 10 Terms TBD
Vanuatu 0 18 18 Credits only
Total national 47 188 235
Regional - - 50 3 countries, 2-for-1
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Global Environment Facility 5th Replenishment
(GEF-5)

• GEF provides incremental funding i.e.
  additional funds that enhance environmental
  benefits by supplementing activities already
  underway
• WB is one of 10 partner agencies through which
  GEF funds are channelled
• GEF 5 (July 2010 July 2014) uses a new System
  for Transparent Allocation of Resources (STAR) to
  pre-allocate funds to countries in 3 areas
  Climate Change, Biodiversity Conservation and
  Land Management
• All PI Bank member countries have GEF STAR
  allocations, managed through GEF focal points
  (usually Environment Depts)

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GEF-5 STAR allocations ( million)(4 yrs
starting 1 July 2010)
Country( flexible) Climate change Biodiversity Land Total
FSM 2.00 3.49 0.9 6.38
Fiji 2.00 4.56 0.59 7.15
Kiribati 2.00 1.69 0.56 4.25
Marshall Islands 2.00 2.02 0.50 4.52
Palau 2.00 1.92 0.50 4.42
PNG 2.00 13.32 1.17 16.49
Samoa 2.00 2.43 0.93 5.36
Solomon Islands 2.00 3.60 0.65 6.25
Tonga 2.00 1.59 0.75 4.34
Tuvalu 2.00 1.50 0.59 4.09
Vanuatu 2.00 2.55 0.89 5.44
Total 24.00 40.17 8.93 73.09
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Summary of potential FES funding opportunities
over next 3-4 years

• Grants
• National IDA grants (6 countries)
• Regional IDA grants (6 countries, 2-for-1 against
  national)
• Trust funds (11 countries, amount unspecified)
• GEF STAR allocations (11 countries, incremental
  funding, approx 1-for-2 against baseline)
• GEF International Waters thematic area (regional,
  amount unspecified)
• Other funding sources (e.g WB Development Grants
  Facility, co-financing from other donors) also
  being explored
• Borrowing
• National IDA credits (7 countries)
• Regional IDA credits (7 countries, 2-for-1
  against baseline)
• IBRD loans (3 countries)

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FES Coastal Fisheries Component Possible
financial structure

• National activities
• Core funding from national IDA grant allocations/
  credits (and possibly IBRD loans in some cases)
• Incremental funding from GEF STAR allocations
• Additional support for studies and TA from Trust
  Funds
• Regional activities
• Core funding from regional IDA grants/ credits
• Incremental funding from GEF International Waters
  Thematic Areas
• Additional support for studies and TA from Trust
  Funds
• Possibility of additional grant funding and
  co-financing from other donors also being explored

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Fisheries Engagement Strategy Processing
timetable

• Complete draft FES and overall work programme
  concept (Dec 2010)
• Circulate FES among countries for comment and
  feedback (Jan 2011)
• Consultative/ follow-up visits to PI countries
  (Feb 2011)
• Finalisation and presentation to SPC HOF meeting
  (28 Feb 4 Mar 2011)
• Submission to WB management for approval (March
  2011)
• Initial activities (Trust Fund) (April-June 2011)
• Major program funding submissions/ applications
  (June/ July 2011)
• Substantive program commencement (late 2011/ 2012)

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FES Coastal Fisheries Component In-country
promotion activities

• Summary information circulated to by WBG to
  national Fisheries/ Environment Departments
• Awareness-raising by Fisheries/ Environment
  Departments to bring the FES to the attention of
  national decision-makers and Central Agencies
  (Ministries of Finance and Planning) for
  consideration for IDA grant/ credit funding
• Dialogue between Fisheries/ Environment
  Departments and other stakeholders to assess
  prospects for accessing GEF STAR national
  allocations

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Thank you!