Pacific Islands Fisheries Engagement Strategy The World Bank Development of a Pacific Islands Fisheries Engagement Strategy

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

World Bank Group The two main development bodies: Also includes: 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

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

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 Bank’s 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

Fisheries Engagement Strategy: Oceanic 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)

Fisheries Engagement Strategy: Coastal 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

FES Coastal Fisheries Component: Proposed 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/ R&D (e.g restocking), private sector, communities, civil society and NGO/ CBO BDM fishery restoration presents opportunity to demonstrate fishery management benefits more broadly

FES Coastal Fisheries Component: Proposed 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

FES Coastal Fisheries Component: Additional 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

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.

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

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)

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 4.56 0.59 7.15 Kiribati* 1.69 0.56 4.25 Marshall Islands* 2.02 0.50 4.52 Palau* 1.92 4.42 PNG 13.32 1.17 16.49 Samoa* 2.43 0.93 5.36 Solomon Islands* 3.60 0.65 6.25 Tonga* 1.59 0.75 4.34 Tuvalu* 1.50 4.09 Vanuatu* 2.55 0.89 5.44 24.00 40.17 8.93 73.09

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)

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 Possibility of additional grant funding and co- financing from other donors also being explored

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)

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

Thank you!