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

2. 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

3. 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

4. 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

5. 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

6. 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)

7. 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

8. 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

9. 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

10. 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

11. 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.

12. 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

13. 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)

14. 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

15. 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)

16. 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

17. 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)

18. 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

19. Thank you!