The World Bank

1. The World Bank Development of a Pacific IslandsFisheries 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: • 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 VakaMoana (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)

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)

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 • Additional support for studies and TA from Trust Funds • 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!