2015

COOK ISLANDS

National Infrastructure Investment Plan

Cook Islands Government

This report is published under the auspices of the Cook Islands Government (CIG), with the support of the Pacific Region Infrastructure Facility (PRIF).

The report was prepared by Richard Mabbitt, David Hamilton, Bernadette Raffe, Des Eggleton and Carsten Huttche working under the guidance of the PRIF Coordination Office and with administrative support by the Asian Development Bank.

PRIF is a multi-development partner coordination, research and technical facility which supports infrastructure development in the Pacific. PRIF Members include Asian Development Bank (ADB), Australian Department of Foreign Affairs and Trade (DFAT), European Union and European Investment Bank (EU/EIB), Japan International Cooperation Agency (JICA), New Zealand Ministry of Foreign Affairs and Trade (NZMFAT), and the World Bank Group.

The views expressed in this report are those of the authors and do not necessarily reflect the views and policies of ADB, its Board of Governors or the governments they represent or any of the other PRIF Members. None of the above parties guarantees the accuracy of the data included in this publication nor accepts responsibility for any consequence of their use.

The use of information contained in this report is encouraged with appropriate acknowledgement. This report may only be reproduced with the permission of both the Cook Islands Government and the PRIF Coordination Office on behalf of the PRIF Members.

Acknowledgements

The authors would like to express their appreciation for the support provided by everyone consulted during the course of preparing the CI NIIP, in particular Financial Secretary, Richard Neves and his staff for their help and assistance throughout the process, and Michael Henry and other members of the Infrastructure Committee for their oversight and guidance. Thanks go to Peter Tierney, Tamarii Tutangata, and Anne Taoro who provided assistance to the consultant team on a daily basis. The team is also very grateful for the logistical support provided by Vanessa Jenner and Charmaine Dolan on the ADB country desk, and the technical guidance provided by the PRIF Coordination Office.

For more information, contact:

Government of Cook Islands

Ministry of Finance and Economic Management (MFEM) Level 1 MFEM Building, 1 Takuvaine Road, Avarua Rarotonga, Cook Islands

www.mfem.gov.ck

PRIF Coordination Office c/- Asian Development Bank Level 20, 45 Clarence Street, Sydney NSW 2000, Australia [email protected] www.theprif.org

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Table 2.34 Education Projects on the Long List                                                                                            30

Table 2.35 Summary of Issues and Strategies, Health                                                                                   31

Table 2.36 Health Projects on the Long List                                                                                                 31

Table 2.37 Summary of Issues and Strategies, Other Infrastructure                                                                 32

Table 2.38 Other Infrastructure Projects on the Long List                                                                               32

Table 3.1 From Long-list to Priorities                                                                                                           33

Table 3.2 Prioritisation Criteria                                                                                                                    36

Table 3.3 Ongoing, Committed and Proposed Projects - Air Transport                                                               39

Table 3.4 Ongoing, Committed and Proposed Projects - Road Transport                                                           39

Table 3.5 Ongoing, Committed and Proposed Projects - Marine Transport                                                         39

Table 3.6 Ongoing, Committed and Proposed Projects – Water Supply                                                             40

Table 3.7 Ongoing, Committed and Proposed Projects - Sanitation                                                                   40

Table 3.8 Ongoing, Committed and Proposed Projects - Solid Waste Management                                              40

Table 3.9 Ongoing, Committed and Proposed Projects - Energy                                                                       40

Table 3.10 Ongoing, Committed and Proposed Projects - ICT                                                                          41

Table 3.11 Ongoing, Committed and Proposed Projects – Multi-sector                                                              41

Table 3.12 Ongoing, Committed and Proposed Projects - Education                                                                 41

Table 3.13 Ongoing, Committed and Proposed Projects - Health                                                                      41

Table 3.14 Ongoing, Committed and Proposed Projects – Other Infrastructure                                                   41

Table 4.1 Prioritization Criteria for Climate Change and Disaster Risk Management used in the MCA for CI NIIP      44

Table 4.2 Climate Change and Natural Hazards Risk Assessment Matrix for CIIP Prioritised Projects                    45

Table 4.3 Prioritised NIIP projects with climate proofing needs based on projected climate change risks (2050)      47

Table 5.1  Contributions to CI NIIP Financing                                                                                                53

Table 5.2 CI NIIP Capital Investment Requirements                                                                                       54

Table 5.3 Infrastructure Maintenance Responsibilities                                                                                    56

Table 5.4 Maintenance Requirements for Economic and Social Infrastructure                                                    56

Table 5.5 CI NIIP Proposed Priority Projects – Possible Funding Sources                                                         58

Table 5.6 Potential Sources of Financing for Climate Change Adaptation and Disaster Risk Management               62

Table 6.1 Indicators for Monitoring the CI NIIP                                                                                              64

Table 6.2 Complementary Activities and other Capacity Building                                                                      66

Abbreviations

ADB                      Asian Development Bank

ASL                      Above Sea Level

AUD                      Australian Dollar

BOO                     Build Own Operate

BOOT                   Build Own Operate Transfer

BOT                      Build Operate Transfer

BSG                     Budget Support Group

CAPEX                  Capital Expenditure

CCA                      Climate Change Adaptation

CCAIRR                 Climate change adaptation through integrated risk reduction

CCCI                            Climate Change Cook Islands

CEO                     Chief Executive Officer

CI NIIP                  Cook Islands National Infrastructure Investment Plan

CIAA                            Cook Island Airports Authority

CIG                      Cook Islands Government

CIIC                      Cook Islands Investment Corporation

CIPA                     Cook Islands Ports Authority

CIREC                   Cook Islands Renewable Energy Chart

CLIMAP                 Climate Change Adaptation Project for the Pacific

CPPO                            Central Policy and Planning Office

CPU                      Coastal Protection Units

DCD                      Development Coordination Department

DCD                      Development Coordination Division

DRM                     Disaster Risk Management

EBITDA                 Earnings before Interest, Taxes, Depreciations, and Amortisations

EC                            European Commission

EDF                      European Development Fund

EIB                       European Investment Bank

EMC                     Emergency Management Centre

EMCI                    Emergency Management Cook Islands

EU                        European Union

GCCA                   Global Climate Change Alliance

GCM                     Global Circulation Models

GDP                     Gross Domestic Product

GEF                      Global Environment Facility

HOM                     Head of Ministry

IC                         Infrastructure Committee

ICI                        Infrastructure Cook Islands

ICT                       Information and Communication Technologies

IDA                       International Development Association

IFC                       International Finance Corporation (of the World Bank Group)

IPCC                     Intergovernmental Panel on Climate Change

JICA                     Japan International Cooperation Agency

JNAP DRM CCA      Joint National Action Plan for Disaster Risk Management and Climate Change Adaptation

kW                            Kilowatt

LO                        Likelihood of occurrence

MCA                     Multi-Criteria Analysis

MDGs                   Millennium Development Goals

MFAI                     Ministry of Foreign Affairs and Immigration

MFEM                   Ministry of Finance and Economic Management

MOE                     Ministry of Education

MOH                     Ministry of Health

MOIA                    Ministry of Internal Affairs

MW                       Megawatt

NCD                      Non-Communicable Disease

NDRMCCC             National Disaster Risk Management and Climate Change Council

NES                       National Environment Service

NGO                     Non-Governmental Organisation

NSDC                    Nationals Sustainable Development Commission

NSDP                    National Sustainable Development Plan

NSWMS                   National Solid Waste Management Strategy

NZ MFAT               New Zealand Ministry of Foreign Affairs and Trade

NZD                      New Zealand Dollar

ODA                     Official Development Assistance

OPM                     Office of the Prime Minister

PACC                    Pacific Adaptation to Climate Change

PASAP                  Pacific Adaptation Strategy Assistance Programme

PCCSP                            Pacific Climate Change Science Programme

PCRAFI    Pacific Catastrophe Risk and Financing Initiative

PIMP    Preventative Infrastructure Master Plan

PMC                     Project Management Committee

PPP                      Public Private Partnership

PRC                      Peoples’ Republic of China

PRIF                     Pacific Region Infrastructure Facility

PV                        Photovoltaic

RE                        Renewable Energy

ROBOC                 Revenue on Behalf of the Crown

SCCF                    Special Climate Change Fund

SOE                     State-Owned Enterprise

SPC                      Secretariat of the Pacific Community

SPCZ                    South Pacific Convergence Zone

SPREP                  Secretariat of the Pacific Regional Environment Programme

SRES                            Special Report : Emission Scenarios

SRIC                     Strengthening Resilience in Island Communities

TA                        Technical Assistance

TAU                      Te Aponga Uira (Power company)

TMV                      Te Mato Vai

UNDP                    United Nations Development Programme  

UNITAR        United Nations Institute for Training and Research

USP   University of the South Pacific

WATSAN               Water and Sanitation Programme

WB                       World Bank Group

Cook Islands

Map prepared by TA Consultants

CINIIP 2015

Preface

The initial fieldwork for this plan was undertaken between February and April 2014 and the Draft Report was submitted in May 2014. There was then an interval in the work due to the national elections in July 2014. In response to comments received and a request to include additional social infrastructure sub-sectors (Health, Education and ‘Other Infrastructure’) further work was undertaken in December 2014 and January 2015. The reader should note therefore that data on the original sub-sectors has not been updated since May 2014, and activities on ongoing and proposed projects since that time have not been recorded. The CI NIIP will be regularly monitored, and fully updated every three years (starting May 2014).

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Executive Summary

A Programme of Infrastructure Investment

The Cook Islands National Infrastructure Investment Plan (CI NIIP) outlines the Cook Islands’ priorities and plans for major infrastructure over the next 10 years. The plan focuses on strategic investments important to Cook Islands’ future. CI NIIP was assembled through a consultative process involving a wide range of stakeholders, including government, international agencies, civil society and the private sector. CI NIIP covers the following infrastructure sub-sectors:

• Air transport
  • Marine transport
  • Road transport
  • Water supply
  • Sanitation
  • Solid waste management
  • Energy
  • Telecommunications and information technology
  • Education
  • Health
  • Other infrastructure (such as government offices)

The aim of CI NIIP is to identify and prioritise the package of infrastructure investments which best meets Cook Islands’ needs in coming years, and to plan for the funding and implementation of these investments. CI NIIP also recommends actions for consideration by Cook Islands Government (CIG) regarding the long-term sustainability of infrastructure assets, and identifies the implications of climate change and disaster risk for these types of infrastructure.

CI NIIP takes account of ongoing and committed projects and includes proposed projects in nine sub-sectors, as well as multi-sector projects. The information on proposed projects has been drawn from a variety of sources, and the level of detail available varies widely between projects. A summary of the major ongoing, committed and proposed investments by sub-sector included in the CI NIIP is shown in Table ES.1.

Table ES.1 Summary of CI NIIP Investments by Infrastructure Sub-sector

The Need for CI NIIP

The national development agenda is framed by the National Sustainable Development Plan (NSDP).1 The overarching national vision is:

‘To enjoy the highest quality of life consistent with the aspirations of our people, and in harmony with our culture

and environment’.

The NSDP sets out eight priority areas and identifies strategies and actions under each. These are summarised in Table ES.2 below.

Table ES.2 NSDP Priority Areas and Goals

Four of these, numbers 2, 3, 5 and 6, are of particular relevance for the CI NIIP as they relate to the provision of infrastructure, and environmental management. Accordingly the CI NIIP responds directly to the goals and strategies for these priority areas. At the same time, the provision of infrastructure also responds in various ways to the other priority areas, for instance by improving access to social services, and facilitating economic development.

Cook Islands faces many challenges in the provision of infrastructure. While income levels are relatively high, the economy is small and open, and economic performance is vulnerable to changes in international markets (particularly tourism source markets). Alongside the economic constraints other issues include the small, decreasing population, dispersed islands, fragile natural environment vulnerable to climate change and natural hazards, and dependence on imported fuel and other goods.

In many countries population growth and rural-urban drift are major factors in the demand for  improvement  and extension of infrastructure, particularly in urban areas. In Cook Islands this is not the case as the resident population has shown a slow decline over the last decade. The principal drivers of demand are the need to support increasing high- quality tourism, plus the need to provide an adequate level of services to a population dispersed over a vast area of the Pacific Ocean.

In the light of these challenges, there is a clear need for a systematic, rational and strategic approach to the prioritisation, planning, implementation and management of infrastructure. Cook Islands National Infrastructure Investment Plan (CI NIIP) is the Government’s response to this need. As mentioned above, the CI NIIP builds on the Government’s existing policy and planning agenda as established in its National Sustainable Development Plan. It also takes account of other CIG planning documents such as sector plans, corporate plans and the national budget. It has been prepared in close liaison with the planning and budgeting teams in the Ministry of Finance and Economic Management (MFEM) and it is intended that the process becomes integrated in to the regular procedures of CIG

1 The Cook Islands, Te Kavenga Nui, National Sustainable Development Plan 2011-2015, Office of the Prime Minister, 2011

It is important that the preparation of CI NIIP should not be seen as a ‘one off’ exercise, as it should be monitored, reviewed and updated as necessary in future years. The success of the CI NIIP will therefore depend on its integration into the processes of the CI Government and support from policy makers.

Methodology

The preparation of CI NIIP has involved five key activities:

• Review of the current state of infrastructure in the various sub-sectors, and an analysis of future needs.
• Listing of proposed investment projects in each sub-sector, together with on-going and committed projects.
• Assessing priority projects, through participatory multi-criteria analysis.
• Preparing a potential funding strategy for CI NIIP.
• Consideration of the means by which climate change/resilience planning can be integrated into the CI NIIP process.
• Identification of complementary activities to support infrastructure planning and management.

Sub-Sector Analyses

The CI NIIP process included the analysis of issues, needs and priorities by infrastructure sub-sector. The key issues  and priorities in each of the sub-sectors are summarised in Table ES.3 below.

Table ES.3 Summary of Infrastructure Issues by Sub-Sector

Preparation of the Project Long-list

From consultations with a wide range and large number of stakeholders a long-list of projects was assembled. The list included all projects that were either ongoing, committed or being considered within each sub-sector and amounted to over 80 projects. All of these projects may be important and could contribute to the national economic and social objectives. However, it is very unlikely that they can all be funded and implemented in the ten-year time frame of CI NIIP.

Prior to prioritisation the list was reduced by removing those projects with a value of less than $NZ0.5m (considered to  be not ‘strategic’), and also those that are already ongoing, or are committed with funding in place. An allocation for small projects was later included in the funding strategy. Ultimately a total of 43 projects were submitted for prioritisation. The overall process is summarised in Figure ES.1.

Figure ES.1 Project Identification and Prioritisation Process

Screening for:

- strategic alignment

- readiness

- project value

Prioritisation using multi- criteria analysis & final review

Funding plan and phasing

Prioritisation

A multi-criteria analysis was used for the prioritisation. It was agreed with CIG and other stakeholders that the criteria should be closely aligned to the eight priority areas in the NSDP (see Table ES.2). The criteria and the percentages thereby attributed to each were discussed several times with stakeholders before being finalised.

Table ES.4 CI NIIP Criteria

The scoring system used in project prioritisation involved scoring sub-criteria on a scale of 0 to 5, with scores of 0 and 1 representing weak performance against the sub-criteria, scores of 2 and 3 representing moderate performance, and scores of 4 and 5 representing strong performance. Scoring was undertaken against the base case of the project not going ahead (thus, for example, avoiding a cost or loss of a benefit was considered as well as generating a benefit). Weights were applied to scores for headline criteria and sub-criteria, based on the perceived importance of these criteria. Headline criteria were weighted as follows:

A first round of scoring was undertaken on by a Working Group comprising representation from the Infrastructure Committee (IC)2, facilitated by the consulting team. These initial scores were reviewed by a workshop attended by representatives from a wide variety of stakeholders. Following discussion of suggested revisions to scores, the outcome of the workshop was recorded and presented to participants. The recommendations of the workshop were  then presented to a meeting of the Infrastructure Committee, and final scores were discussed and agreed. A summary of the results is shown in Table ES.5 below.3

Table ES.5 Results of Prioritisation (Full Descriptions of the Top 24 projects are given in Appendix C)

Funding Strategy

The funding strategy for CI NIIP has been developed in close cooperation with MFEM. This has entailed analysis of CIG’s own funding projections. On this basis an overall capital expenditure of $NZ288m for economic and social infrastructure over the next 10 years was set as a target. Once ongoing and committed projects are included, along with allowances for small projects and climate change adaptation costs, the overall funding envelope provides for 24 of the prioritised projects to be included. The 24 priority projects are shown in Table ES.6.

2 The Infrastructure Committee includes members from ICI, MFEM, Office of the Prime Minister (OPM), and the private sector

3 Note: A second round of prioritisation was undertaken for education, health and other infrastructure projects. This process was overseen and ratified by the Infrastructure Committee with representatives of other agencies in attendance.

Table ES.6 Proposed Priority Projects

Capital investment requirements for economic infrastructure over the period 2014/15 to 2023/24 derive from projects ongoing or committed at the commencement of the plan period, high priority proposed projects of strategic importance which can be accommodated within the level of funding availability assumed for CI NIIP, an allowance for smaller projects below the capital cost threshold set for CI NIIP, and provision for any additional climate-proofing required for CI NIIP investments. These requirements are summarised below:

Table ES.7 CI NIIP Capital Investment Requirements

The overall CI NIIP investment plan (including ongoing and proposed projects) will be funded from a combination of Government Budget (CAPEX), ODA, concessional loans, SOE self-financing, and private finance. Funding for ongoing projects is already secured, while funding for most proposed projects is yet to be determined. Table ES.8 identifies the funding modality (or combination of modalities) that might be appropriate for each CI NIIP project.

Table ES.8 Potential Funding Modalities for CI NIIP

Whole of Life Project Costs

Historically expenditure on maintenance of existing infrastructure in Cook Islands has not been sufficient to adequately maintain the assets. Rehabilitation and ongoing maintenance must therefore be a fundamental part of future  infrastructure investment. A number of the projects in the CI NIIP are not new construction, but comprise the repair and rehabilitation of existing infrastructure facilities and will therefore contribute to the task of improving the condition of existing assets (analysis presented in Appendix G shows that 45 percent of CI NIIP projects by number and 35 percent by value represent new investment, while the balance represent upgrading or deferred maintenance of existing infrastructure).

Clearly, Cook Islands has a substantial maintenance task in relation to existing infrastructure, and this will increase as CI NIIP is implemented. This will be most evident in the case of new infrastructure. However, as mentioned above, many CI NIIP projects involve deferred maintenance and/or upgrading of existing infrastructure. Also, the prioritisation process used in the selection of projects for CI NIIP has a bias towards containing the maintenance task, with the inclusion of criteria relating to the ability of projects to meet on-going costs of operation and maintenance. The CI NIIP discusses the

principles involved in ‘whole of life costing’ of infrastructure investments, and provides estimates of the ongoing maintenance costs associated with the plan.

Financial Sustainability

As SOEs manage much of the economic infrastructure, the financial health of these entities is important to the financial sustainability of the infrastructure investment program. Progress is being made in improving the efficiency and financial performance of SOEs, supported by the oversight role of the Cook Islands Investment Corporation. While SOEs are responsible for managing their own activities, some general points can be made in relation to further strengthening financial performance:

• Ensuring that the range of expertise needed to run SOEs is available.
• Retaining the clear commercial focus of SOEs, and the transparent identification of community service obligations and their funding.
• Encouraging a maintenance culture in SOEs driven by the Boards and Chief Executives, supported by the gradual strengthening of asset management systems.
• Continuing the monitoring of financial performance undertaken by CIIC (including the provision of clear guidelines to SOEs on expectations in relation to financial performance), and the dissemination of information on the financial performance of SOEs to the community.

In relation to infrastructure which is managed directly by Government, financial sustainability is currently low. There is a need to strengthen management in areas such as:

• Stronger asset management systems with an emphasis on developing a stronger maintenance culture.
• Improved cost recovery, with regular review of fees and charges (taking into account the financial and economic impact of fees and charges), and efforts to strengthen the efficiency of collection systems.
• More systematic and reliable funding for maintenance and operations, premised on better performance in utilising funding and in reporting on performance.
• Ongoing review of institutional arrangements in relation to this infrastructure, with the aim of improving the efficiency of operations.

Outer Island Investment

The distribution of priority projects by island is shown in Table ES.9 below. This shows that, while Rarotonga accounts for around half of the projects, in general terms the priority projects include some investments in all islands. If compared to population distribution there is a positive bias towards the outer islands. When considering island balance it should also be noted that if the picture was completed with projects below the $NZ0.5m cut off the distribution would be more even.

Table ES.9 Top Priority Projects by Island (Not including ongoing and committed projects)

  Marine                                                                                                                                                                                                                              

  Road                                                                                                                                                                                                                                

  Water                                                                                                                                                                                                                               

  Sanitation                                                                                                                                                                                                                       

  Solid Waste                                                                                                                                                                                                                    

  ICT                                                                                                                                                                                                                                    

  Multi-sector                                                                                                                                                                                                                    

  Education                                                                                                                                                                                                                       

Climate Change and Disaster Risk Management

An integral part of the CI NIIP was an assessment of the potential impacts of climate change and natural hazards on the infrastructure sub-sectors being considered and in particular on the priority projects. The incorporation of climate change and disaster risk assessment into the CI NIIP process is summarised below:

• Review of current and future climate conditions in the Cook Islands
• Identification of the vulnerability of different types of infrastructure, provincial variations in potential risk, and the possible adaptation strategies that can be employed
• Inclusion of climate risk criteria for project prioritisation
• Overall assessment of priority projects’ vulnerability to climate change and natural hazards
• Evaluation of the enabling environment for climate change adaptation and disaster risk management
• Detailed assessments for those proposed priority projects most susceptible to climate change and natural hazards in order to identify potential measures (and costs of integrating them) to mitigate impacts and increase their resilience
• Identification of potential CC/DRM funding sources

Table ES.10 Summary of Projected Climate Change in Cook Islands

NATURAL HAZARDS

Tropical cyclones are most likely the single most predominant natural hazard affecting Cook Islands between November and April. In the 41-year period between 1969 and 2010 a total of 47 tropical cyclones passed within 400km of Rarotonga, an average of just over one cyclone per season. The number of cyclones varies widely from year to year, with none in some seasons, but up to six in others. Over the period 1969 to 2010, cyclones occurred more frequent in El Niño years.

According to the earthquake hazard predictions, Cook Islands are situated in a relatively quiet seismic area and have low chance of experiencing a strong earthquake in the next 50 years. Nonetheless, the larger tectonic area of Pacific “Ring of Fire” can in the future generate tsunamis that may affect Cook Islands' shores (PCRAFI, 2011). Disasters like tsunamis can pose threats to human lives and infrastructure of Cook Islands in the future. In 1909, a tsunami with waves up to three meters high caused damage to roads, bridges and crops in Rarotonga. Recent major under-sea earthquake events in the Pacific Region – Samoa (2009) and Japan (2011) – have resulted in none or minor waves in Cook Islands (EMCI, personal communication).

RISK ASSESSMENT OF PRIORITY PROJECTS

Those CI NIIP priority projects that were found to have high risks at present day or in the future were selected for further evaluation of preliminary climate change adaptation needs. This process was carried out for 9 out of the 23 shortlisted CI NIIP projects, namely:

• TMV Trunk, Intakes, reservoirs, treatment, meters etc.
• Outer Islands Community Water Tank rehabilitation
• Outer Islands Cyclone shelters
• Orongo Marina and Town Centre Development
• Avarua Bridges
• Penrhyn Coastal Protection - TeTautua & Omoka Port Facilities and Fuel Depot relocation
• Rutaki Foreshore Rock Revetment Development
• Apii Nikao School reconstruction
• Water harvesting systems in schools

Moving CI NIIP Forward

The preparation of this CI NIIP report is only the first step. Government should assign CI NIIP a clear position and role within its existing framework of operations, planning and decision-making. A wide spectrum of stakeholders must view CI NIIP as the key guide to infrastructure investment. This will require a clear communication strategy to effectively share information with diverse external stakeholders and all parts of Government.

MEASURING PROGRESS OF CI NIIP

Assessing the progress of CI NIIP will use a blend of qualitative and quantitative M&E methods. Central to the process will be some measurable indicators. Suggested indicators are shown in Table ES.11.

Table ES.11 Indicators for Monitoring the CI NIIP

The CI NIIP monitoring will be undertaken by the Infrastructure Committee (IC) and reported to the NSDC. The IC already reports directly to the NSDC so this will just be a natural extension of its current tasks.

Capacity Building

Undertaking this major programme of investments in infrastructure will stretch the capabilities of CIG. There are a number of areas of planning, implementation and management in which capacity building will be required. These complementary activities include a variety of supporting mechanisms varying from technical outputs such as plans and regulations, to institutional strengthening. The needs and opportunities for institutional strengthening are highlighted in the CI NIIP, particularly at the strategic level. A summary of the complementary activities is shown in Table ES.12, along with indications of which CIG agencies will be involved and whether or not the activity would require (or benefit from) external technical assistance.

Table ES.12 Capacity Building and other Complementary Activities

Key to CIG Agencies: CCCI – Climate Change Cook Islands, CIAA – Cook Islands Airports Authority, CIIC – Cook Islands Investment Corporation, CIPA – Cook Islands Ports Authority, ICI - Infrastructure Cook Islands, MFEM – Ministry of Finance and Economic Management, MOE – Ministry of Education, MOH – Ministry of Health, MOIA – Ministry of Internal Affairs, MOJ – Ministry of Justice, MOT – Ministry of Transport, OPM – Office of the Prime Minister.

1 Introduction

1.1                                         About the CI NIIP

1.1.1                 ROLE AND OBJECTIVES

1              The Cook Islands National Infrastructure Investment Plan (CI NIIP) outlines the priorities and plans for major infrastructure investments over the next ten years. CI NIIP was assembled through a consultative process involving  a wide range of stakeholders, including government, international agencies, civil society and the private sector. The Plan covers the following infrastructure sub-sectors:

• Air transport
• Marine Transport
• Road transport
• Water supply
• Sanitation
• Solid waste management
• Energy
• Information and communications technology
• Education
• Health
• Other infrastructure

2              The Plan should be seen as a framework for priority investments rather than a fixed blueprint, as situations and priorities will change over the next ten years. For this reason proposals for the first few years of the Plan period are put forward with greater detail and certainty than those in the later years.

3              CI NIIP identifies actions for consideration by Government regarding the long-term sustainability of infrastructure assets, and identifies the implications of climate change and disaster risk for the types of infrastructure covered by the Plan. It also includes recommendations for a range of complementary activities to support the planning and management of infrastructure.

1.1.2                 THE CI NIIP PROCESS

4              The process of preparing the CI NIIP has been tailored to fit the situation in the Cook Islands, drawing on lessons learned from CI NIIPs for other Pacific island countries. The methodology involved the following key activities:

• Review of the current state of infrastructure in the various sub-sectors, and an analysis of future needs.
• Listing of proposed investment projects in each sub-sector, together with on-going and committed projects.
• Assessing priority projects, through participatory multi-criteria analysis.
• Estimating capital and recurrent costs of priority investments
• Preparing a potential funding strategy for CI NIIP.
• Consideration of the means by which climate change/resilience planning can be integrated into the CI NIIP process.
• Identification of complementary activities to support infrastructure planning and management.

5              An outline of the CI NIIP process is shown in Figure 1.1.

Figure 1.1 The CI NIIP Process

6              The CI NIIP consolidated planning work being undertaken by CIG in the various economic and social infrastructure sub-sectors, and developed a methodology for project prioritisation. It was essentially a coordination exercise, with little primary survey, analysis, or project identification work involved. As described later in the report, the CI NIIP will be subject to periodic review to address emerging issues and recent developments and a full update every three years starting from May 2014.

1.2                                       Consultation, Participation and Communication

7              The CI NIIP has been prepared with extensive consultation and participation of stakeholders in Government, State Owned Enterprises (SOEs), development partners, the private sector and civil society. This included dozens of individual meetings, two workshops and a number of meetings with the Infrastructure Committee (IC), the steering group for the CI NIIP. Going forward it is proposed that all formal communications are made through regular communication channels on behalf of the IC and Cook Islands Investment Corporation (CIIC). The consultation process is summarised in Table 1.1 below, and a list of people consulted is given in Appendix A.

8              During the consultation process the team endeavoured to ensure representation by women. Whilst overall the process involved far more males than females, women were present and made their views known at each of the key participatory events – the two workshops, the prioritisation working groups, and the meeting with representatives of non-governmental organisations (NGOs). At the prioritisation workshop there was at least one woman in every breakout group. It has to be recognised however that in Cook Islands women are not well represented in the planning and design of infrastructure and this is discussed later in this report.

Table 1.1 Summary of Consultation and Communications Programme

2 Infrastructure Provision

2.1         General Situation

9              This chapter outlines the context within which infrastructure provision takes place. This includes the geographic and economic conditions, the status of existing infrastructure, and the drivers of demand for new and improved infrastructure.

2.1.1                 POPULATION

10          The total population of Cook Islands peaked at 21,322 in 1971, declining by 17 percent to 17,794 in 2011 (the resident population, excluding visitors in the country at the time of the Census, declined at a faster rate). Over the same period, the total population of Rarotonga grew by 14 percent, while that of all other islands declined (Aitutaki  by 29 percent, Mangaia by 73 percent, Atiu by 67 percent, Manihiki by 47 percent, Penrhyn by 65 percent, and Pukapuka by 38 percent, for example). At the time of the 2011 Census, the total population of Southern Group islands (other than Rarotonga and Aitutaki) was just over 1,500, while the total population of Northern Group Islands (including Palmerston) was just over 1,100.

2.1.2                 GEOGRAPHIC AND ISLAND CONTEXT

11          The total area of the Cook Islands territory is over 2 million km2, but land comprises only about 240km2 of this or about 0.01%. There are 15 islands of which 12 have permanent populations. These islands are spread over a distance of some 800 km. The islands other than Rarotonga are often referred to as the ‘Pa Enua’. Meaning literally ‘Sister Islands’, this term has been used in some places in this report. A summary of the islands’ characteristics is given in Table 2.1.

Table 2.1 Island Characteristics

2.1.3                 ECONOMIC OVERVIEW

12          The Cook Islands is a middle income economy,4 which has made strong progress in measures of human development in education and health. The economy can be characterised as small, open, narrowly based but relatively affluent.5 The economy is largely dependent on tourism. Flows of official development assistance also  make a significant contribution to the economy, while remittances from Cook Islanders overseas are thought to be less significant (though difficult to measure).

13          Marine resources (fish and pearls) and agriculture make smaller contributions to the economy.6 Exports of agricultural products and pearls have declined in recent years, while there has been growth in fish exports from a  low base due to the transhipment of some offshore catch through Rarotonga. The major contribution to the economy from the fisheries sector continues to be fees associated with the licensing of offshore fishing vessels, while prospects exist for expansion of the local fishery, high value exports of fresh fish by air freight, and transhipment of frozen fish caught offshore. The large exclusive economic zone of the Cook Islands (1.8 million square kilometres) provides potential for new industries such as extraction of sea-bed minerals, though realisation of this potential may be well into the future.

14          Tourism is concentrated on the islands of Rarotonga and Aitutaki, while source markets are becoming concentrated on New Zealand and Australia as longer haul markets have declined (possibly due to a combination of the global financial crisis, and security concerns in the international arena encouraging potential visitors to holiday closer to home). MFEM forecasts visitor arrivals to reach 123,000 in 2013/14 (having reached the 100,000 level for the first time in 2009), with annual visitor numbers now more than nine times current estimates of the resident population. Visitor numbers are forecast to grow by 1.7 to 1.8 percent per annum over the next few years. Visitor expenditure is forecast to reach $NZ231 million in 2013/14, equivalent to 57 percent of forecast nominal Gross Domestic Product (GDP).

15          While income levels are relatively high, the economy is small and open. Economic performance is vulnerable to changes in international markets (particularly tourism source markets), and to natural disasters including cyclones and associated storm surges.

Table 2.2 Economic Indicators

Source: Pre-election Economic and Fiscal Update 2014, MFEM, 30 April 2014

16          MFEM estimates that annual growth in real GDP slowed from 2.5 percent in 2011/12  to 2.4 percent in 2012/13.  Real GDP is forecast to decline by 0.7 percent in 2014/15, 1.1 percent in 2015/16, and 0.4 percent in 2016/17. MFEM attributes this decline to slower forecast growth in tourism and decreases in aid commitments.

17          The balance on merchandise trade is strongly negative (due to high levels of merchandise imports and limited merchandise exports), but more than offset by a strongly positive balance on trade in services (driven by tourism receipts), leading to a positive trade balance overall.

18          Expenditure on public works amounted to $NZ34 million in 2011/12, and is estimated to average just over $NZ33 million per annum over the following four years. This expenditure on public works includes economic infrastructure, but also includes expenditure on other public works including social infrastructure and public buildings.

2.1.4                 OPPORTUNITIES AND CHALLENGES

19          The Cook Islands faces many challenges in the provision of infrastructure. Alongside the economic constraints set out above, other issues include:

4 GDP per capita per year was estimated to be $NZ26,898 in 2013.

5 Cook Islands: Macroeconomic Assessment, ADB Technical Assistance Consultant’s Report, RETA 7681, June 2013

6 Though the macroeconomic assessment cited above notes that the contribution of agriculture and fisheries to the economy is under-valued due to the exclusion of household production from GDP estimates.

• Small, decreasing population.
• Dispersed islands.
• Fragile natural environment vulnerable to climate change and natural hazards.
• Dependence on imported fuel and other goods.

20          At the same time the country is strengthening its reputation as a tourism destination, is fairly well advanced towards renewable energy providing the majority of its power, and may benefit significantly in the medium to long-term from seabed mineral extraction. The provision of infrastructure will play a major role in enabling the country to maximise its opportunities against quite significant obstacles.

2.2                                     National, Sector and Sub-sector Planning

2.2.1                 NATIONAL DEVELOPMENT AGENDA

21          The national development agenda is framed by the National Sustainable Development Plan (NSDP).7 The overarching national vision is ‘To enjoy the highest quality of life consistent with the aspirations of our people, and in harmony with our culture and environment’. The NSDP sets out eight priority areas and identifies strategies and actions under each of these. The priority areas and the strategies relevant to CI NIIP area summarised in Table 2.3. The prioritisation process adopted by this CI NIIP reflects the aims within all of the priority areas (see Chapter 3).

Table 2.3 NSDP Goals and Strategies

7 The Cook Islands, Te Kavenga Nui, National Sustainable Development Plan 2011-2015, Office of the Prime Minister, 2011

22          The NSDP is currently under review and a new version will be published in 2015. The revised version is expected to represent a significant overhaul of the document. In particular it is intended that the NSDP will be more closely  linked with regular planning, budgeting and monitoring activities within Cook Islands Government (CIG). The indicators for monitoring NSDP will be revised to ensure that only those indicators that can be readily measured will be included. (For reference, the existing NSDP indicators are shown in Appendix J).

23          It is also expected that the 2015 NSDP will reflect a change of emphasis in development strategy that has occurred since the current version was prepared. This is a shift in emphasis towards development of the key economic centres of Rarotonga and Aitutaki. This is based on the premise that by supporting the growth of economic centres the benefits will spread to the whole country. This policy shift has been supported and promoted by major development partners such as New Zealand and ADB. Whilst CIG will continue to support investment in the outer islands it is likely that the share of funding will be more closely related to the distribution of population than in the recent past.

24          An indication of current strategy is provided in the ADB’s Country Operations and Business Plan 2014-2016, which was agreed with CIG in 2013. This reports that the four priority areas identified by CIG are water and sanitation, renewable energy, governance, and ICT.

2.2.2                 INFRASTRUCTURE MASTER PLAN

25          In 2007 a Preventative Infrastructure Master Plan (PIMP) for Cook Islands was prepared under the ADB’s TA 4605- COO, Strengthening Disaster Management and Mitigation. The PIMP identified needs and project proposals throughout the country for transport, water supply, energy, sanitation, solid waste management, and telecommunications, as well as projects aimed at emergency management and climate change responses. Progress on implementation of the PIMP has been mixed and it has been used as more of a checklist rather than a guiding strategy.

26          A review of the PIMP undertaken in 20128 found slow progress and a number of shortcomings with the Plan itself and with the preparation process. These included:

• The format of the document is not easily digestible – over 500 pages
• There was only limited consultation outside the agencies responsible for infrastructure
• The Plan was not widely publicised when in draft or final version
• There was no clear champion for dissemination and coordination of the Plan
• The Plan is not well linked to other national strategies

27          From the point of view of CIG, one of the objectives of the CI NIIP is to address the weaknesses of the PIMP. The PIMP has therefore been one of the key reference points for the CI NIIP. The progress of projects by sub-sector is shown in Chapter 3.

2.2.3                 ABSENCE OF SPATIAL DEVELOPMENT PLANS

28          Rarotonga is one of the few national capitals in the world with no urban development plan or zoning plan. Whilst the small scale of the urban area does not present some of the acute issues faced by larger capital cities, increasing pressure on land and increasing vehicle numbers will gradually create problems in the future. Experience in other Pacific islands shows that traffic congestion can occur with quite low volumes simply because of the limited road network, and as urban areas grow marginal land becomes increasingly attractive to developers. This marginal land includes wetlands that are essential as flood retention areas during cyclones and heavy rain. Most importantly in Cook Islands development controls are needed to protect the natural environment on which tourism and therefore the national economy are based.

29          The effectiveness of infrastructure planning will be hindered until national, island and urban spatial development plans have been prepared. These would highlight such things as focal points for urban growth, key areas for

8 A First Quarter Review of the Cook Islands Infrastructure Master Plan (2007-2012), MOIP in association with Cook islands Tourism Corporation, 2011.

commercial and industrial activities, productive agricultural areas, tourism zones and ecologically sensitive areas to be protected. Such plans would enable infrastructure planners to identify high priority areas where investment will bring rapid and widespread results. They would also facilitate the assessment of opportunities for integrated infrastructure provision, or ‘connectivity’ – locations where multi-sector investments will complement each other and increase the effectiveness of the individual facilities. In addition, properly planned and coordinated infrastructure development outside the urban areas will go some way to checking rural to urban migration.

2.2.4                 LAND ISSUES

30          Most infrastructure uses land. Disputes over land ownership are a common feature of projects throughout the Pacific islands where traditional land tenure systems do not gel well with modern approaches to development. Cook Islands is no exception and during consultations on CI NIIP land issues have been mentioned frequently and specifically in relation to several ongoing projects, including outer island airfields and solar installations. Due to the sensitivity of customary land, Government is reluctant to use its powers of compulsory acquisition (or ‘warrant’ as it is known in Cook Islands). This results in long delays in project implementation.

31          There is no quick fix for the land issue, but a legislative review would help. It is also apparent that land titles would benefit from review and modernisation. Existing records are not digitised and are often found to be inaccurate. A programme of digitised land titling would enable verification of all plot boundaries and streamlining of the system. It would also complement the land use planning process mentioned above.

2.2.5                 INSTITUTIONS INVOLVED IN INFRASTRUCTURE PROVISION

32          Responsibilities for policy/planning, provision, and regulation of infrastructure are summarised in Table 2.4. As can be seen from the Table, the provision of infrastructure in the Cook Islands involves a large number of agencies, a surprisingly large number given the small population size of the country. This inevitably results in fragmentation of effort and investment, and limited coordination.

33          At the same time there is little regulation and oversight of services provision. Energy is currently the only infrastructure sub-sector with a regulating commissioner overseeing the performance of the service  provider. Equally, the legislative background is patchy and out of date. A study of infrastructure service delivery undertaken under ADB technical assistance9 recommends the establishment of a ‘One Stop Shop’ regulatory agency for the infrastructure sector, and a comprehensive review and update of the laws relating to infrastructure and development.

Table 2.4 Institutional Responsibilities

9 ADB TA-7287, Infrastructure Services Delivery Improvement, Mid-Term Report, September 2010, AECOM

Key to institutions: CIAA – Cook Islands Airports Authority, CIIC – Cook Islands Investment Corporation, CIPA – Cook Islands Ports Authority, ICI – Infrastructure Cook Islands, MOE – Ministry of Education, MOH – Ministry of Health, MOIA – Ministry of Internal Affairs, MOT – Ministry of Transport, OPM – Office of the Prime Minister, USP – University of the South Pacific

2.2.6                 SECTOR AND SUB-SECTOR PLANS

34          Existing sector/sub-sector plans, strategies and studies are summarised in Table 2.5. The status of sector plans and strategies varies across infrastructure sub-sectors. For the sub-sectors without existing comprehensive investment strategies the team has assembled information from corporate plans, business plans, and other policy statements.10

10 Note: The prioritisation process in CI NIIP has been designed to allow for the different levels of information available between sub-sectors. This will require a careful balancing act to ensure some commonality between sub-sectors but also not losing significant information available in the sub-sectors with more extensive data.

Table 2.5 Existing Sector Plans and Studies

2.3                                     Demand for Infrastructure

2.3.1                 THE DRIVERS OF DEMAND FOR INFRASTRUCTURE

35          The demand for infrastructure is driven by a range of factors. In Cook Islands these include:

• Increasing economic activity, particularly tourism
• The overarching goal to improve quality of life of Cook Island citizens
• The trend for increased business and social connectivity through improved and expanded technology
• The need to prepare for climate change and disaster management
• The aim to achieve increased sustainability, particularly through renewable energy

36          In many countries population growth and rural-urban drift are major factors in the need for improvement and extension of infrastructure, particularly in urban areas. In Cook Islands this is not the case as the resident population has shown a slow decline over the last decade. Nevertheless one driver of investment in economic infrastructure is the need to provide an adequate level of services to a population dispersed over a vast area of the Pacific Ocean.

37          To some extent demand is also driven by Government policy. For instance its commitment to developing the country as a tourist destination calls for the provision of services and facilities beyond those that would be required just for the resident population, particularly large scale infrastructure in Rarotonga and Aitutaki.

38          Key drivers and indicators of demand are summarised in Table 2.6.

Table 2.6 Drivers of Demand

2.4                                     Infrastructure Status

39  This section describes the status of infrastructure by sub-sector is provided in A. A summary is shown in Table 2.7.

Table 2.7 Summary of Key Infrastructure

11 Cook Island News, Saturday 17th May 2014

2.5                                      Sub-sector Assessments

40          This section provides an analysis of the current situation in each infrastructure sub-sector, the key issues and any existing strategies. This includes an analysis of the progress made on the projects proposed by the 2007 Preventative Infrastructure Master Plan (PIMP), and their status in the current list of proposed projects held by CIIC. The CI NIIP priority projects and complementary activities for each sub-sector are shown in Chapter 3.

2.5.1                 AIR TRANSPORT

Current Situation

41          Rarotonga has an international airport with a 2,400 metre concrete strip opened in 1974. Improvements including instrument landing system, new navigation aids, enlarged arrivals, departure and baggage areas have evolved over time. Aitutaki the next busiest airport has a 1,800 metre chip-sealed surface strip serviced regularly by Air Rarotonga’s 36 seater Saab aircraft.

42          Each of the other islands have their own loose surfaced airstrips, generally managed by land owners, and poorly maintained as insufficient funds are put back into maintenance. A 12-seater Bandarantie aircraft operated by Air Rarotonga services the Northern and Southern Groups. These services are rather irregular to the north, with relatively expensive airfares and severe freight restrictions, while more regular services with freight capacity operate to southern group.

43          Air Rarotonga has a policy of operating the turboprop Saab aircraft only into sealed strips in line with Pacific-wide policy for turbo prop aircraft operation. This therefore restricts use of this aircraft to the Rarotonga and Aitutaki services at this time.

44          The growth in tourism with passenger movements reaching over 250,000 per year continues to strain the facilities at the Rarotonga International Airport and terminal upgrading is needed. A review and master plan was ongoing at the time of preparing the CI NIIP.

45          The upgrade of each island’s airstrip to provide a sealed surface has been a consideration over many years. The highest priority strip for upgrade is Atiu given the island’s increasing tourism growth. Other southern group strips should be considered for sealing while the Mangaia strip needs to be relocated to provide sufficient length for operations.

46          There has been strong demand from residents of the Northern Group for operation by Saab aircraft. However,  recent population decreases mean that such a system would be economically marginal at best, and it would be difficult to sustain even taking into account opportunities for increased freight carriage resulting from a larger aircraft. Services to the Northern Group by Saab would require a minimum of two suitable airports so as to provide  alternates in case of bad weather and other emergencies, in accordance with Civil Aviation rules. Air Rarotonga has advised that it would operate the Saab into an upgraded sealed airstrip at Manihiki, using the loose surface airstrip  at Penrhyn as the alternate.

47          The sealing of all airstrips would provide consistent operating surfaces and reduced maintenance costs. In the  longer term talk of an international facility in Aitutaki is very much dependant on growth in accommodation and room stocks and is more probably a consideration in 20 plus years.

Table 2.8 Air Transport Projects Proposed by the 20-Year PIMP, 2007

Strategies

48          The sub-sector strategy in the PIMP included the following:

• Provide the necessary standard of safety, aircraft and passenger handling capacity, and levels of service at Rarotonga to meet the requirements of international civil aviation.
• Increase the passenger and cargo capacity and frequency of air service provided to the Outer Islands.
• Increase the reliability of service so that flights are not cancelled through fuel shortages or runway damage
• Reduce the operating costs of air transport services.
• Ensure airport facilities satisfy MOT and International Civil Aviation Organisation (ICAO) safety requirements through repair, upgrading, operation and maintenance of airport facilities to prescribed standards.
• Implement the necessary climate change adaptation measures to ensure airports are not made inoperable by extreme weather events.

49          The NSDP calls for the improvement of airports, terminals and airstrips beginning with Aitutaki, Atiu, Manihiki and Mangaia.

50          There has been little progress on any of the PIMP or NSDP proposals.

51          At the time of preparing this CI NIIP a study funded by the European Investment Bank (EIB) was being undertaken – ‘Technical Assistance for the Development of the Cook Islands Airports Upgrade Project’. The findings of the TA are likely to influence the strategy for aviation investments as the study includes the following: (a) Rarotonga aiport navigational aids, (b) Rarotonga airport upgrade, (c) feasibility study into the use of renewable energy for the electricity requirements of the Cook Islands Airport Authority, (d) a strategic plan for Cook Islands Airport Authority, and (e) a business plan for Rarotonga airport.

Table 2.9 Summary of Issues and Strategies, Air Transport

Table 2.10 Air Transport Projects on the Long List

2.5.2                 MARINE TRANSPORT

Current Situation

52          Following recent major reconstruction of Avatiu Port together with climate proofing and extension to storage and operational areas, the principal port on Rarotonga is adequate for the next 20 years or so. Berthing for larger container vessels and small cruise ships is possible within Avatiu harbour. Height restrictions apply due to the airport approach and take-off clearance requirements, restricting certain vessels from berthing. The completion of the  cruise ship jetty on the western side of Rarotonga offers an alternative for cruise ship operators to allow visitors to venture ashore when conditions at Avatiu would otherwise force these ships to bypass Rarotonga.

53          The works at Avatiu also provided for local marine/fishing operators but is operating at capacity. A Japanese funded, jetty and concrete launching ramp is presently under construction at the Avana Harbour in the Muri area.

54          The first stage of improvements in Orongo port on Aitutaki have recently been completed. In the other islands in the Southern Group Recent works have included the upgrade and climate proofing of harbours in Mauke, Mitiaro, and Mangaia. Other outer islands have basic harbour facilities that require climate proofing and or refurbishment.

55          The growth of the fishing industry particularly in the area of the Northern Group islands offers opportunities for refuelling and resupplying in the ‘in lagoon port’ at Penrhyn. The upgrade of this facility together with increased fuel storage could provide greater economic gains in the north. There are presently concerns about the location of the 60,000 litre fuel storage tank and the need for secure cyclone protection works.

56          The ‘Orongo’ project that includes a marina in Aitutaki will provide an opportunity to grow the cruise yacht business, an area of activity on which the Cook Islands largely misses out due to lack of facilities. Estimates are that up to 1,000 yachts traverse the South Pacific from French Polynesia through the Cook Islands waters on their way to Fiji and Tonga every season, with the Cook Islands receiving small numbers due to the lack of facilities and good  berths. This project will have considerable benefits to island trading ships, fishing vessels and barge operators, by offering passage into the harbour with tie up berthage. Most trading ships presently have to be offloaded onto small barges for transfer to shore.

57          Increased berthage for local fishing boats and visiting yachts is planned by Cook Islands Ports Authority (CIPA) through improvements at the ‘western access’ small boat facility in Avatiu. A similar project at the Avana harbour would also meet the demand created by visiting yachts and local boats.

Table 2.11 Marine Transport Projects Proposed by the 20-Year PIMP, 2007

Strategies

58          The sub-sector strategy in the PIMP included the following:

• Provide the necessary harbour, berth and cargo handling capacity required to meet traffic requirements in terms of size and draught of vessels, number of vessels and volume and type of cargo.
• Provide operational efficiencies and level of service at Avatiu and Aitutaki Harbours to minimise shipping and facilities operating costs.

• Provide fit-for-purpose harbours which remain sufficiently calm to allow boats to operate in most sea conditions.
• Provide robust, durable harbour structures able to survive damage in all but the most extreme weather conditions.
• Increase safety for seamen and reduce damage and losses of vessels, cargoes and equipment
• Increase the frequency of inter-island shipping service.
• Reduce the operating cost of inter-island shipping service.
• Increase the level of service provide for passengers on inter-island shipping services.
• Minimise adverse impacts on the marine environment.

59          The NSDP calls for the continued upgrade of ports beginning with Manihiki, Rakahanga and Aitutaki.

Table 2.12 Summary of Issues and Strategies, Marine Transport

Table 2.13 Marine Transport Projects on the Long List

2.5.3                 ROAD TRANSPORT

Current Situation

60          On Rarotonga a ring road circles the island close to the beach and lagoon. An inner ring road, ranging from about 300m to 1km inland from the main ring, provides about 70 percent of a complete circle. Both these road networks are chip sealed. The inner road is quite narrow along much of its length. A 2012 programme of resurfacing using asphaltic concrete wearing course runs from the airport entrance around the western end of the airport for a  distance of 2.7 kilometres on the main road.

61          A significant factor in road damage is the lack of control of axle weights and the operation of overweight vehicles on the road system. Increased traffic on Rarotonga together with tourist traffic, including an increase in cycling, has created the need for a substantially improved foundation and road surface. Constraints to improvement are the limited right of way (about 10m), and the minimal roadside drainage. The target is to provide asphaltic concrete surfacing to the majority of the main ring road particularly through major villages with the inland and connecting  roads finished with a chip seal.

62          Project City is set to start at the end of the 2014 financial year. This will provide for 4.5 km of road reconstruction between the airport entrance into Avarua and through Tupapa and surrounding roads recently damaged during the laying of new water mains.

63          The Muri area carries some of the highest pedestrian traffic outside of the main township due to the high density of tourist numbers. Road widening and the provision of footpaths is needed here.

64          Aitutaki has a considerable length of good width sealed road on main distributors with loose clay elsewhere. The southern group outer islands have minimal lengths of sealed road within their main villages. All northern group roads are coral sand based with loose surfacing, while much of the southern group is clay-based with loose surface.

Table 2.14 Road Transport Projects Proposed by the 20-Year PIMP, 2007

Strategies

65          The sub-sector strategy in the PIMP included the following:

• Reduce the number of road accidents, serious injuries and deaths.
• Introduce effective traffic and parking management measures to maintain the physical environment and village ambience in the Avarua area.
• Ensure the integrity of the main road network in Rarotonga in providing access to key infrastructure and services even with the occurrence of cyclones and other extreme weather events.
• Rehabilitate, strengthen and maintain road pavements and drainage structures to preserve road assets and minimise total road transport cost (combined road user and agency costs)
• Provide all-weather road access to key infrastructure and services in each of the Outer Islands.

66          The NSDP identifies two actions:

• NSDP: Improve our roads in conjunction with improvements of water, energy and telecommunications distribution networks.
• Establish PPP in road management and take into consideration road safety and the impacts of disasters and climate change in all engineering specifications.

Table 2.15 Summary of Issues and Strategies, Road Transport

Table 2.16 Road Transport Projects on the Long List

2.5.4                 WATER SUPPLY

Current Situation

67          The ability of ICI to guarantee clean water 24 hours a day is hampered by old pipe networks, minimal storage, poor filtration, and significant network losses. In the recent past supply on Rarotonga has regularly been interrupted for at least 50 percent of its population. Residents in higher elevations lose pressure regularly while distribution and availability to lower lying areas continues to be erratic as gallery intake pressures reduce.

68          In 2013 upgrading including new mains and laterals was undertaken from the airport entrance in Nikao to the village of Tupapa and surrounding areas. Included in these works was the upgrading of the Takuvaine intake and trunk line.

69          A major project, Te Mato Vai (TMV), recently commenced on Rarotonga. This is an endeavour to provide a clean, reliable water supply to Rarotonga by 2016. Initial works involve the refurbishment and replacement of all intakes, trunk mains, and round island mains, with the exception of Takuvaine intake that was completed as part of the 2013 upgrades.

70          Further works will include:

• Treatment works and storage reservoirs required at each of the 12 intakes.
• Installation of pressure return valves on the intake lines, flow meters, and backflow prevention devices is being recommended to facilitate effective management of the network.

71          Smaller and peripheral projects have been identified and include:

• The continuation of the subsidised private water tank project
• Detailed investigation into Rarotonga’s groundwater resources
• Installation of booster pumps to supply properties over 30metres above mean sea level
• Initiatives to address customer side leakage across Rarotonga
• The implementation of supervisory control and data acquisition systems.

72          The islands in the Northern and Southern Groups experience limited water availability, which is typical of small islands. Recent water tank programmes have improved the situation but usage continues to outstrip  storage capacity. All islands require further investment increased storage capacity, upgraded and refurbished galleries and better reticulation.

Table 2.17 Water Supply Projects Proposed by the 20-Year PIMP, 2007

Strategies

73          The sub-sector strategy in the PIMP included the following:

• Short term - Focus on service delivery by upgrading supply capacity and capability through rehabilitation of the headworks on most of the islands and provision of new rainwater tanks for the islands in the Northern Group.
• Medium Term - Focus on improving water quality in the southern islands where a reticulated water supply system is in place.
• Long Term - Focus on the period 2017-2027 on asset maintenance and upgrade and system expansion. Also consideration of a reticulated system for non-potable water on the northern islands in order to improve the quality of life and service.

74          The NSDP identifies a number of actions:

• Develop a national policy and plan for the management of water resources
• Develop the legislative and regulatory framework for the management of water resources
• Improve data collection and analysis for water resource management
• Rehabilitation of water intakes
• Upgrade water galleries
• Work on the ringmain and distribution lines
• Increase water harvesting and storage
• Promote and implement most viable options to ensure safety and quality of water
• Implement cost recovery measures for the delivery of water

Table 2.18 Summary of Issues and Strategies, Water Supply

Table 2.19 Water Supply Projects on the Long List

2.5.5                 SANITATION

Current Situation

75          The Cook Islands has no central sewerage system. Generally both grey and black waters from domestic, smaller commercial properties, and businesses run to individual septic tanks, or into poor distribution soakage systems.

Sludge receiving ponds were constructed in 2010 in both Rarotonga and Aitutaki for the disposal of sludge from septic tanks. No such facility is available on any of the other islands.

76          A recent project funded by New Zealand has seen the setting up of a monitoring body ‘WATSAN’ under ICI. Monitoring requirements and policing have been strengthened through the passing of the Public Health (Sewage) Regulations 2008, and Public Health Sewage Code 2008. The latter sets out the minimum standards for domestic and commercial sanitation systems.

77          WATSAN has overseen the replacement of over 100 septic tanks to private residential properties, within a 100  metre zone of the mean high water mark in the Muri Beach area, the most densely populated tourism zone on Rarotonga. This area was selected due to the extent of the lagoon in this location, and the deterioration of lagoon water quality.

78          The threat to lagoon waters from untreated sewage effluent is increasing in other locations also, primarily due to growing tourism numbers. Similar improvements to those implemented in Muri are required around the island of Rarotonga in the short term. In the longer term one major central treatment facility or a few smaller treatment stations will be required to allow total reticulation and appropriate treatment/disposal of liquid waste.

79          Aitutaki with significantly increasing tourism numbers will require similar short and long term treatment as described for Rarotonga. The low resident numbers in other islands means that the sanitation issues there are not as acute as in Rarotonga and Aitutaki. However, with tourism being promoted in several islands, improved septic tanks and  some form of disposal will be required in due course.

Table 2.20 Sanitation Projects Proposed by the 20-Year PIMP, 2007

Strategies

80          The sub-sector strategy in the PIMP included the following:

• Short term - Focus on improving the environment in the most densely populated villages on Rarotonga by the installation of centralised wastewater collection, treatment and disposal systems. These projects will alleviate some of the urgent sanitation-related issues on the island, notably the pollution of the lagoon and the Tereora- Tepuka system.
• Medium Term - Focus on mitigating environmental impacts on the outer islands by constructing improved wastewater management facilities such as simplified septage ponds, as well as upgrading the sanitation facilities at the emergency management centres (EMCs) on each island to reduce the potential health risks associated with extended stay in crowded areas.
• Long Term - Focus on the period 2017-2027 on upgrading and expanding the village sewerage schemes on Rarotonga and Aitutaki.

81          The NSDP calls for the upgrade of poor sanitation systems and installation more efficient domestic and commercial systems, improvement of the sanitation and wastewater treatment systems, and changes in farming practices.

Table 2.21 Summary of Issues and Strategies, Sanitation

Table 2.22 Sanitation Projects on the Long List

2.5.6                 SOLID WASTE MANAGEMENT

Current Situation

82          A purpose designed solid waste facility for the island of Rarotonga was constructed in a valley system close by the village of Arorangi in 2010. Coupled with this facility is a recycling centre with compaction equipment that compresses and bundles recyclables. A managed landfill site was provided in Aitutaki around the same time.

83          A project manager has been appointed under the WATSAN programme to carry out a ‘Strategic Assessment’ of

waste coupled with economic analysis and waste audit on Rarotonga.

84          Outer island disposal continues on the basis of open pit disposal. Recycling is not widespread and the issue of how to deal with waste on the small islands is becoming critical.

Table 2.23 Solid Waste Management Projects Proposed by the 20-Year PIMP, 2007

Strategies

85          The sub-sector strategy in the PIMP included the following:

• Short Term - Focus on the second stage of waste management on Rarotonga – waste separation and processing of the non-landfill waste streams. Construction of a transfer station and waste separation facility to reduce the amount of waste going to the landfill site; procurement of equipment to improve the operation of the hazardous waste recycling plant; and establishment of a central composting plant.
• Medium Term - Focus on provision of proper landfill facilities on the outer islands.
• Long Term - Focus in 2017-2027 on construction of a new landfill facility on Rarotonga and replacement of plant and equipment for the recycling operations. Similarly, landfill operations on the southern islands may also need to be expanded.

86          The NSDP includes several actions:

• Review the institutional arrangements to manage waste including public-private partnerships
• Develop and implement the national waste management policy

• Develop necessary legislative and regulatory frameworks to better manage waste
• Enhance education and awareness in waste management
• Transform waste facilities in Rarotonga and Aitutaki to resource recovery centres Implement the National Waste Strategy

87          The National Solid Waste Management Strategy 2013-2016 provides a policy background and institutional programme but requires further detailing in order to set out clear implementation targets.

Table 2.24 Summary of Issues and Strategies, Solid Waste Management

Table 2.25 Solid Waste Management Projects on the Long List

2.5.7                 ENERGY

Current Situation

88          Currently diesel-fuelled generation units provide power requirements in all islands. Rarotonga and Aitutaki are the only two islands with 24-hour operation. Other islands operate on restrictive generation times generally meeting morning and evening demands with closedowns from late evening through to about 6am.

89          The private sector has been active in taking up opportunities for solar panel installations. The intention is that  surplus power from all these systems will be fed into the general grid. Notable in this is Rarotonga Airport where a recently installed large solar array is already contributing significantly to the island’s power supply. Upgrading at the main power station in Rarotonga is being planned in order to accommodate the input of solar power from the individual suppliers.

90          A programme is underway to provide solar systems to the Northern Group, and a similar programme is proposed for the Southern Group. Further investigation and data recording continues in assessing the desirability/viability of wind energy.

Table 2.26 Energy Projects Proposed by the 20-Year PIMP, 2007

Strategies

91          The Government’s target is for reaching 50 percent of the country to have renewable energy by 2015 and 100 percent by 2020.

92          The sub-sector strategy in the PIMP included the following:

• Short term - Focus on service delivery improvements through repair or optimisation of the performance of the power generating capacity on the outer islands and increasing the safety through standardisation of the wiring. Replacement of the generators on Aitutaki and upgrading the distribution system on Atiu.
• Medium Term – Improvement of the power distribution capacity on the outer islands and the construction of a new power station in Rarotonga.
• Long Term – 2017-2027 a national program to replace generators on the outer islands with fuel-efficient models.

93          The NSDP proposes the following actions:

• NSDP: Implement the Cook Islands Renewable Energy Chart.12
• Transform energy organisational mechanisms to better coordinate implementation of renewable energy.
• Adopt and utilise technologically, commercially and environmentally sound proven technologies.
• Implement renewable energy rollout in the Northern Pa Enua.
• Implement renewable energy rollout in the Southern Pa Enua.
• Encourage studies into renewable energy and storage options.
• Build on TAU’s metering policy to encourage renewable energy uptake for potential expansion to the Pa Enua

Investigate and implement appropriate business models for the changing energy landscape.

• Strengthen policy and regulatory frameworks, financial management, raising awareness, building capacity and increasing participation of our communities in the achievement of renewable energy targets.
• Explore and implement sound incentives to encourage renewable energy uptake encourage renewable energy. uptake Continually upgrade and maintain energy infrastructure.
• Build capacity and expertise in renewable energy systems.
• Implement awareness and educational programmes for renewable energy, energy conservation and efficiency.

Table 2.27 Summary of Issues and Strategies, Energy

Table 2.28 Energy Projects on the Long List

12 The CI Renewable Energy Chart is a policy and programme. The Chart does not specify confirmed technologies for each island nor final design capacities.

2.5.8                 ICT

Current Situation