A VT2 billion grant from the World Bank Group is set to reform unplanned urban settlements in Vanuatu and effectively improve the standard of living for many families.

It comes after the recent launching of the Vanuatu Affordable and Resilient Settlement (VARS) Project by the Vanuatu government and World Bank.

The project is the first of its kind in the Pacific region and the total cost is less than a VT3 billion grant. The money will cover unplanned urban settlements, particularly 23 unplanned settlements identified by Vanuatu authorities.

Ministry of Lands director-general Henry Vira has welcomed the assistance from World Bank.

“Vanuatu is exposed to multiple natural hazards, rapid urban growth rates, serviced land provision is slow, costly, and limited to high income groups, and low-and middle-income earners move into unplanned settlements in high hazard risk land with limited land registration and services leading to low quality of living environments high incidences of preventable diseases, and low-quality housing stock and increasing disaster risk in the settlements,” Vira said.

In 2016, the Vanuatu government requested assistance from the World Bank Group to address the growing problem of squatters in various disaster risk prone areas of Port Vila, he said.

There were two key questions for the technical assistance to focus on under the VARS, which are the future residential land and housing needs for low-and-middle income earners, and where and how the needs can be met given constraints of affordability and natural hazard risk.

The second is how the government can lead and enable activities and resources of public and private stakeholders to meet urban expansion needs, guide future development, and contribute to national economic growth and prosperity.

Main economic hub
Vira said the capital city Port Vila was the government’s and the country’s main economic hub, accounting for an estimated 65 percent of GDP.

“The city has an estimated population of 66,000 people living within the municipal boundaries. The municipal area plus surrounding peri-urban settlements with strong economic and social connectivity to the city center is home to closer to 114,000 people, almost 40 percent of the nation’s population,” he said.

“In-migration from other islands accounts for most of the urban growth of 60 percent, with the remaining 40 percent from natural growth of the working age urban population.

“Urban-rural income differentials and rural underemployment are key drivers for people moving to Port Vila and smaller towns such as Luganville, in search of employment, better wages, health services, and education opportunities.”

Vira said the pace of urbanisation limited institutional capacity, and resource constraints have impacted the quality and resilience of urban settlements in greater Port Vila and development over the past decades had largely been unplanned and unregulated, resulting in the emergence of 23 informal settlements within the municipality and adjacent peri-urban areas of SHEFA Province.

He said people and assets were increasingly locating in marginalised and hazard-prone areas, including floodplains, steep hillsides susceptible to landslides, and coastal areas exposed to tsunamis and inundation.

“Households living in unplanned settlements with insecure tenure are reluctant to invest in resilient structures, increasing their vulnerability,” Vira said.

Two priority approaches
The VARS project embraces two priority approaches: retrofitting existing settlements through upgrading to improve services and resilience and developing new models for planned and serviced urban expansion.

Resident Representative of World Bank for Vanuatu and Solomon Islands Annette Leith said Vanuatu was one of the most highly prone and vulnerable countries in the world to natural disasters.

“The rapid pace of urbanisation and the growth of unplanned settlements adds a new dimension to this challenge,” Leith said.

“I applaud the government and the people of Vanuatu for the many steps taken to build resilience through policies, investments, strengthening of institutions and building capacity at the national, provincial and community levels.

“I am pleased that the VARS Project will provide financial and technical resource to help implement some of these policies and provide resilient investments. This is an exciting project being led by the Vanuatu government in partnership and with support from the World Bank.”

This article is republished under a community partnership agreement with RNZ.

Article by AsiaPacificReport.nz

BRIEFING: By Dan McGarry in Port Vila

The “news” this week that Vanuatu was to be the site of a Chinese military base caught most people by surprise. Government officials with detailed knowledge of relevant matters swore hand on heart they’d never even heard hints of such talk.

Minister of Foreign Affairs Ralph Regenvanu questioned the sourcing of the report, telling the Radio Australia’s Pacific Beat radio programme, “I’m not very happy about the standard of reporting in the Australia media”.

Chinese embassy officials in Vanuatu declined an interview request, stating, “The report is groundless and not worth any comment at all.”

READ MORE: Vanuatu rejects ‘speculative’ base claim

The topic has quickly become the loudest non-conversation in town.

Tacitly at least, officials from all nations recognise Vanuatu’s strategic importance.

A Chinese sailor raises the red flag on the prow of a PLA Navy frigate during a visit to Vanuatu. Image: Dan McGarry/Vanuatu Daily Post

-Partners-

Luganville, on the island of Espiritu Santo, was the site of one of the largest military bases in the entire Pacific Theatre during WWII.

Home to about 100,000 personnel at its peak, it saw nearly one million service people pass through before it was decommissioned in 1946.

Controlling air, sea
What was true in the 1940s remains true today: Whoever controls Vanuatu controls air and sea traffic between the United States and Australia. Right now, that’s the government of Vanuatu.

For more than a decade, this tiny island nation has leveraged regional rivalries to drive infrastructure development. Its dalliances with China, for example, resulted in a US$20 million investment by telecoms giant Huawei in an island-hopping communications network.

That move is said by some to have motivated a multimillion-dollar commitment from Australia to fund telecoms regulation and management.

For years, western nations were simply not interested in big-ticket, high-risk projects. Infrastructure projects worldwide are fraught with budget overruns, scope creep and delays. Risk-averse donors therefore shied away.

But not China.

Largely on the back of questionably “concessional” loans from the China EXIM Bank, contractors secured a mixed bag of infrastructure projects, ranging from roads to wharves to buildings. They include sport facilities, a convention centre and a school.

But the most noticeable project was a US$90 million wharf project in Luganville. Almost from the outset, people raised the spectre of the old American base there.

Revived interest
Many Pacific watchers think there’s no coincidence to a recently revived interest from the Asian Development Bank, the World Bank and other funding bodies in Pacific islands infrastructure.

At the same time as the Luganville wharf was being constructed, Japan was also demonstrating its friendship to Vanuatu by building a major wharf facility in Port Vila, the capital. The US$70 million project came at much more favourable terms.

Australia meanwhile signed on to a US$30 million urban infrastructure development project in the capital. The World Bank has already committed $60 million to the nation’s airports, and is reportedly considering upping the ante to $150 million.

Despite the fact that Australia remains the largest donor in Vanuatu and the Pacific, analysts suggest that China has stolen a march on them by ingratiating themselves with politicians who see infrastructure projects as vote-getters.

An artist’s view of the completed Luganville wharf … source of the “base” controversy. Image: Shanghai Construction Group/VDP

Lacking coherence
It is widely felt that Chinese engagement lacks coherence, and that the quality of its work is variable, to be generous. But nobody doubts its popularity with the political elite here, and that is something that should cause concern in Canberra.

Locally, engagement between Australian development workers and their government counterparts is excellent. But communication between Pacific capitals and Canberra is sadly lacking.

Ill-considered stories such as the recent Fairfax article, or Senator Fierravanti-Wells’ January diatribe about Chinese “roads going nowhere” play poorly in the Pacific. They only offer China an opportunity to commiserate with local officials, and to go on quietly building roads and wharves.

Dan McGarry is media director of the Vanuatu Daily Post group. This article is republished with permission.

Article by AsiaPacificReport.nz