Vanuatu - Aviation Investment Project

Ratings of Aviation Investment Project for Vanuatu were as follows: outcome was satisfactory, Bank performance was satisfactory, and monitoring and evaluation quality was substantial. Some of the lessons learned include: (i) The regional approach is an ideal option for countries with limited IDA country allocation and/or are in urgent need for developing a complex large-scale investment; (ii) The regional approach yields spillover benefits across participating countries that face similar development challenges; (iii) While maintaining the benefit of using harmonized solutions across participating countries, regional programs need to allow certain flexibility for each country to tailor its project design based on specific country context; (iv) Technical and Fiduciary Services Unit (TFSU) was a key feature of Pacific Aviation Investment Program (PAIP) while it was contested by the tension and trade-offs between a regional modal and a country-based modal; (v) Remoteness premiums need to be factored into project budgeting, especially when limited benchmark rates are available for a certain sector; (vi) Experience from VAIP demonstrates the benefits that the updated World Bank Standard Procurement Document would bring with regard to environmental, social, health and safety management (ESHS) performance; (vii) The Supervision Engineer must be able to provide timely decision-making onsite; and (viii) Strengthening the aviation sector in Pacific countries requires substantial technical, legal, and financing resources, which makes it critical to leverage partnership with all development partners to form a long-term coherent engagement with the targeted country.