Vanuatu Affordable and Resilient Settlements Project (VARS)

Project Management Unit
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VARS project background

A long-term vision of the Government of Vanuatu (GoV) is to provide potable water, sanitation, roads, drainage, and electricity to low-income households for the largest number of citizens. To address this, the International Development Agency of the World Bank Group is supporting the GoV with the Vanuatu Affordable and Resilient Settlements Project (VARS). Aims of the Project include developing a phased, 10-year, risk-informed Land Development, and Investment Strategy (LDIS) for the Greater Port Vila area with an estimated population of 114,000 people, almost 40 percent of the country’s population. VARS also will support GoV to prepare a five-year action plan to implement phased settlement upgrading (SURP) of the 23 existing informal settlements in the Greater Port Vila area. To build towards these two interdependent medium-term platforms, the Project will implement on-the ground selected investments and associated institutional, and policy strengthening measures to pilot and set policy precedents for new land development and in situ settlement upgrading. This includes: (a) basic area upgrading of four informal settlements (Ohlen Mataso, Seaside, Tokyo and portion of Anambrou); (b) developing a 10 ha ‘sites-and-services’ (greenfield) lower-middle income residential area subdivision; (c) expansion or rehabilitation (as required) of off-site infrastructure focusing on flood management and mitigation; and (d) implementing measures for transformative institutional capacity strengthening of responsible Government of Vanuatu and sub-national agencies for planning, financing, and implementing the 10-year LDIS and 5-year SURP in partnerships with communities and the private sector.

The Project is being implemented by the Ministry of Lands and Natural Resources (MoLNR), supported by the Ministry of Internal Affairs (MIA), Ministry of Infrastructure and Public Utilities (MIPU), the Department of Environmental Protection and Conservation (DEPC), Shefa Provincial Council, and Port Vila City Council (PVCC).

Vanuatu Affordable and Resilient Settlements Project (VARS) The Ministry of Lands and Natural Resources (MoLNR) is implementing the Vanuatu Affordable and Resilient Settlements (VARS) Project through a US$25 million grant from the World Bank International Development Association (IDA).

Project Development Objective (PDO): The objective of the VARS project is to:
(i) improve access to and resilience of infrastructure and services in selected new and existing settlements, and
(ii) strengthen land planning and management for resilient human settlement.

Implementation Arrangements
Institutional and implementation arrangements are shown diagrammatically in Figure 1 below:

Affordable and Resilient New Settlement Development

Resilient new settlement development
Institutional and systems strengthening for future settlement planning and development.

Affordable and Resilient Settlement Upgrading

2.1 Resilient settlement upgrading
2.2 Sustainable Urban Drainage for settlements
2.3 Institutional and systems strengthening for upgrading unplanned settlements.

Strengthening Institutional Capacity for Implementation and Sustainability

Contingent Emergency Response (CERC)

Proposed Components and Sub-components

Republic of Vanuatu
Vanuatu Affordable and Resilient Settlements Project and Additional Financing [P173278]
ENVIRONMENTAL and SOCIAL COMMITMENT PLAN (ESCP)
Additional Financing - Negotiated
February 27, 2026

ENVIRONMENTAL AND SOCIAL COMMITMENT PLAN
1. The Republic of Vanuatu (the Recipient) is implementing the Vanuatu Affordable and Resilient Settlements Project (the Project), with the involvement of the Ministry of Lands and Natural Resources (MoLNR) as set out in the Original and Additional Financing Agreements (the Agreements). The International Development Association (the Association) has agreed to provide the original financing and additional financing for the Project, as set out in Agreements. This ESCP supersedes previous versions of the ESCP for the Project and shall apply both to the original and the additional financing for the Project referred to above.
2. The Recipient shall ensure that the Project is carried out in accordance with the Environmental and Social Standards (ESSs) and this Environmental and Social Commitment Plan (ESCP), in a manner acceptable to the Association. The ESCP is a part of the Agreements. Unless otherwise defined in this ESCP, capitalized terms used in this ESCP have the meanings ascribed to them in the Agreements.
3. Without limitation to the foregoing, this ESCP sets out material measures and actions that the
Borrower shall carry out or cause to be carried out, including, as applicable, their respective timeframes; institutional, staffing, training, monitoring and reporting arrangements; and grievance management. The ESCP also sets out the environmental and social (E&S) documents that shall be prepared or updated, consulted, disclosed and implemented under the Project, consistent with the ESSs, in form and substance acceptable to the Association. Said E&S documents may be revised from me to me with prior written agreement by the Association. As provided for under the referred Agreements, the Recipient shall ensure that there are sufficient funds available to cover the costs of implementing the ESCP.
4. As agreed by the Association and the Recipient, this ESCP will be revised from me to me, if necessary, to reflect adaptive management of Project changes or unforeseen circumstances or in response to Project performance. In such circumstances, the Association and the Recipient agree to update the ESCP to reflect these changes through an exchange of letters signed between the Association and the Minister of MoLNR. The Recipient shall promptly disclose the updated ESCP.
5. The subsection on “Indicators for Implementation Readiness” below identifies the actions and measures to be monitored to assess Project readiness to begin implementation in accordance with this ESCP. Nevertheless, all actions and measures in this ESCP shall be implemented as set out in the “Timeframe” column below irrespective of whether they are listed in the referred subsection.

	MATERIAL MEASURES AND ACTIONS	TIMEFRAME	RESPONSIBILE ENTITY/AUTHORITY
	IMPLEMENTATION ARRANGEMENTS AND CAPACITY SUPPORT
A	ORGANIZATIONAL STRUCTURE Maintain a Project Management Unit (PMU) with qualified staff and resources to support management of environmental, social, health and safety (E&S) risks and impacts of the Project including one Social and Environmental Specialist, one Social Officer and one Environmental Officer.	Maintain the PMU with qualified staff and resources to support management of E&S risks and impacts throughout Project implementation.	MOLNR
B	CAPACITY BUILDING PLAN/MEASURES Prepare and implement the following capacity building measures: - Training for PMU staff on the Asbestos Management Plan as required. - Training for PMU and contractors on Project environmental, social, health and safety (ESHS) requirements, including but not limited to the Code of Conduct, Stakeholder Engagement requirements, Occupational Health and Safety, monitoring and reporting requirements.	Training program shall be prepared, adopted and implemented initiated within 90 days of the effective date of the Additional Financing Agreement. Trainings shall be provided at regular intervals throughout the Project implementation period.	MOLNR
	MONITORING AND REPORTING
C	REGULAR REPORTING Prepare and submit to the Association regular monitoring reports on the environmental, social, health and safety (ESHS) performance of the Project, including but not limited to the implementation of the ESCP, status of preparation and implementation of E&S documents required under the ESCP, stakeholder engagement activities, functioning of the grievance mechanism(s).	Submit six monthly reports throughout Project implementation and submit quarterly summaries and internal reports on public grievances, enquiries and related incidents, together with the status of implementation of associated corrective/preventative actions, shall be collated by the designated GM officer, and referred to the Project Director, Manager, Project Steering Committee and the Bank. no later than 10 days after the end of each reporting period.	MOLNR
D	CONTRACTORS’ MONTHLY REPORTS Contractors are required to provide monthly monitoring reports to the PMU. The PMU shall submit contractor monthly reports to the Association upon request.	Contractor to submit monthly progress reports to the PMU. Contractor reports to be submitted to the Association upon request.	MOLNR
E	INCIDENTS AND ACCIDENTS Notify the Association of any incident or accident relating to the Project which has, or is likely to have, a significant adverse effect on the environment, the affected communities, the public or workers, including those resulting in death or significant injury to workers or the public; acts of violence, discrimination or protest; unforeseen impacts to cultural heritage or biodiversity resources; pollution of the environment; forced or child labor; displacement without due process (forced eviction); allegations of sexual exploitation or abuse (SEA), or sexual harassment (SH); or disease outbreaks. Provide available details of the incident or accident to the Association upon request. Arrange for an appropriate review of the incident or accident to establish its immediate, underlying and root causes. Prepare, agree with the Association, and implement a Corrective Action Plan that sets out the measures and actions to be taken to address the incident or accident and prevent its recurrence.	Notify the Association no later than 48 hours after learning of the incident or accident. Provide available details upon request. Provide review report and Corrective Action Plan to the Association no later than 10 days following the submission of the initial notice, unless a different timeframe is agreed to in writing by the Association.	MOLNR
	ESS 1: ASSESSMENT AND MANAGEMENT OF ENVIRONMENTAL AND SOCIAL RISKS AND IMPACTS EXCLUSIONS:
1.1	ENVIRONMENTAL AND SOCIAL ASSESSMENTS AND/OR PLANS 1. Update, disclose, adopt and implement the Environmental and Social Management Framework (ESMF) to include an e-waste management plan and updated exclusions list consistent with this ESCP and relevant ESSs. 2. Screen all proposed Project activities - including technical assistance and associated facilities - and assess their environmental and social risks and impacts, including potential cumulative and downstream impacts in accordance with the ESMF. 3. Prepare, disclose, adopt, and implement any relevant instruments, including site specific Environmental and Social Management Plan (ESMP) or Environmental & Social Code of Practice (ESCoP) based on the assessment processset out in the ESMF. If required, prepare an ESMP and associated Asbestos Management Plan for the deconstruction of the existing MoLNR office. 4. Incorporate relevant aspects of this ESCP, including, inter alia, any environmental and social management plans or other instruments, ESS2 requirements, and any other required ESHS measures, into the ESHS specifications of the procurement documents and contracts with contractors and supervising firms. Thereafter ensure that the contractors comply with the ESHS specifications of their respective contracts.	1. Adopt the updated ESMF no later than 60 days after the Effective Date of the Additional Financing Agreement and implement the ESMF throughout Project implementation. 2. All Project activities shall be screened and assessed in accordance with the Project’s ESMF prior to the carrying out of the relevant Project activities. 3. Site specific instrument shall be prepared, disclosed and adopted prior to carrying out of the relevant Project activities, and shall be implemented throughout the carrying out of such activities. 4. Before the launching of procurement process for the relevant Project activities, and thereafter throughout the carrying out of such activities.	MOLNR
1.2	MANAGEMENT OF CONTRACTORS Incorporate the relevant aspects of the ESCP, including, inter alia, relevant E&S assessments or plans, the Labor Management Procedures, and code of conduct, into the E&S specifications of the procurement documents and contracts with contractors and supervising firms. Thereafter ensure that the contractors and supervising firms comply and that they require their subcontractors to comply with the E&S specifications of their respective contracts. Provide copies of the relevant contracts with contractors/subcontractors and supervision firms to the Association.	As part of the preparation of procurement documents and respective contracts. Supervise contractors throughout Project implementation. Copies of relevant contracts provided to the Association upon request.	MOLNR
1.3	TECHNICAL ASSISTANCE Carry out the technical assistance activities, including consultancies, studies (including feasibility studies, if applicable), master planning, capacity building, training, and any other technical assistance activities under the Project in accordance with terms of reference acceptable to the Association, that are consistent with the ESSs. Thereafter review and ensure the outputs of such activities are in compliance with the terms of reference.	Throughout Project implementation.	MOLNR
1.4	CONTINGENT EMERGENCY RESPONSE FINANCING 1. Prepare the Contingent Emergency Response Component (CERC) Manual , including a description of the ESHS assessment and management arrangements for the implementation of CERC, in accordance with the ESSs and in a manner acceptable to the Association. 2. Implement the E&S provisions of the CERC Manual, and any assessments and plans required therein.	1. The preparation of CERC Manual in form and substance acceptable to the Association is a withdrawal condition under Section III.B.1(b) of Schedule 2 of the Agreements. 2. In accordance with the timeframes specified in the CERC Manual and any assessments and plans required therein.	MOLNR
1.5	ASSOCIATED FACILITIES Cause the Recipient to ensure that the activities in the demolition of the MoNLR building are carried out in accordance with the applicable requirements of this ESCP and the ESSs, including, the approved ESMP.	Undertake screening throughout the Project and ensure key provisions incorporated into the procurement bidding documents prior to the deconstruction of the MoLNR office. Prior to CERC activation	MOLNR
	ESS 2: LABOR AND WORKING CONDITIONS
2.1	LABOR MANAGEMENT PROCEDURES Implement the Labor Management Procedures (LMP) for the Project; including provisions to prevent and manage the risks of Sexual Exploitation and Abuse/Sexual Harassment (SEA/SH).	Implement the LMP throughout Project implementation.	MOLNR
2.2	OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT PLAN Require contractors and subcontractors to prepare and implement OHS Management Measures or Plan in accordance with the requirements of Annex 7 of the ESMF as part of the ESMP or ESCOP in a manner acceptable to the Association.	Prepare and include the OHS Management Plan prior to the commencement of activities and thereafter implement the plan throughout Projectimplementation.	MOLNR
2.3	GRIEVANCE MECHANISM FOR PROJECT WORKERS Maintain and operate a grievance mechanism for Project workers, as described in the LMP and consistent with ESS2.	Maintain and operate Project worker grievance mechanism throughout Project implementation.	MOLNR
	ESS 3: RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT
3.1	WASTE MANAGEMENT PLAN Prepare, adopt and implement a Waste Management Plan (WMP) of all relevant types of waste as part of the ESMP prepared for the Project, to manage hazardous and non-hazardous wastes, consistent with ESS3. Prepare the relevant WMP as part of site ESMP/C-ESMP and thereafter implement the WMP throughout Project implementation.	Prepare the relevant WMP as part of site ESMP/C-ESMP and thereafter implement the WMP throughout Project implementation.	MOLNR
3.2	RESOURCE EFFICIENCY AND POLLUTION PREVENTION AND MANAGEMENT Incorporate resource efficiency and pollution prevention and management measures in the ESMPs or ESCOPs to be prepared under action 1.1 above.	Same timeframe as for the preparation and implementation of the ESMPs/ESCOPs.	MOLNR
	ESS 4: COMMUNITY HEALTH AND SAFETY
4.1	TRAFFIC AND ROAD SAFETY Incorporate measures to manage traffic and road safety risks as required in the ESMPs or ESCOP sto be prepared under action 1.1 above.	Same timeframe as for the preparation and implementation of the ESMPs or ESCOPs.	MOLNR
4.2	COMMUNITY HEALTH AND SAFETY Assess and manage specific risks and impacts to the community arising from Project activities, including, inter alia, minimize the potential for community exposure to communicable diseases and exposure to asbestos; ensure that individuals or groups who, because of their particular circumstances, may be disadvantaged or vulnerable, have access to the development benefits resulting from the Project; manage the risks of labor influx; and prevent and respond to sexual exploitation and abuse, and sexual harassment and include mitigation measures in the ESMPs or ESCOPs to be prepared under action 1.1 above.	Same timeframe as for the preparation and implementation of the ESMPs or ESCOPs.	MOLNR
	ESS 5: LAND ACQUISITION, RESTRICTIONS ON LAND USE AND INVOLUNTARY RESETTLEMENT
5.1	RESETTLEMENT PLAN 1. Prepare, disclose and implement an Abbreviated Resettlement Action Plan for the resettlement of one household in Ohlen Mataso consistent with ESS5, in a manner acceptable to the Association. 2. Screen all project activities per action 1.1 above and prepare, disclose and implement a Resettlement Plan (RP) for any activity involving ESS5 impacts consistent with ESS5, in a manner acceptable to the Association.	1. Prepare, disclose and implement the ARAP prior to carrying out the relevant works at Ohlem Mataso, including ensuring that before taking possession of the land and related assets, full replacement assets and relocation assistance have been provided. 2. Prepare, disclose and implement the respective RP prior to carrying out the relevant works, including ensuring that before taking possession of the land and related assets, full compensation has been provided and [as applicable] displaced people have been resettled and moving allowances have been provided.	MOLNR
	ESS 6: BIODIVERSITY CONSERVATION AND SUSTAINABLE MANAGEMENT OF LIVING NATURAL RESOURCES
6.1	BIODIVERSITY RISKS AND IMPACTS Assess risks to biodiversity as part of the ESMP or ESCOP preparation under action 1.1 above and implement the ESMP or ESCOP throughout implementation of the relevant Project activity.	Same timeframe as for the preparation and implementation of the ESMPs or ESCOPs.	MoNLR
	ESS 7: INDIGENOUS PEOPLES/SUB-SAHARAN AFRICAN HISTORICALLY UNDERSERVED TRADITIONAL LOCAL COMMUNITIES Not relevant.
	ESS 8: CULTURAL HERITAGE
8.1	CHANCE FINDS Adopt and implement the chance finds procedure described in the ESMF and include the procedure in the site specific ESMPs or ESCOPs.	Same timeframe as for the preparation and implementation of the ESMPs or ESCOPs.	MOLNR
	ESS 9: FINANCIAL INTERMEDIARIES Not relevant.
	ESS 10: STAKEHOLDER ENGAGEMENT AND INFORMATION DISCLOSURE
10.1	Adopt, and implement the updated AF Stakeholder Engagement Framework (SEF). Prepare, disclose, adopt and implement site specific Stakeholder Engagement Plans (SEP)	Adopt and implement the SEF throughout Project implementation. Prepare, disclose, adopt and implement site specific SEP before relevant Project activities commence, and implement the SEPs throughout implementation of the relevant Project activities.	MOLNR
10.2	PROJECT GRIEVANCE MECHANISM Maintain, publicize, and operate an accessible grievance mechanism, to receive and facilitate resolution of concerns and grievances in relation to the Project, promptly and effectively, in a transparent manner that is culturally appropriate and readily accessible to all Project-affected parties, at no cost and without retribution, including concerns and grievances filed anonymously, in a manner consistent with ESS10. The grievance mechanism shall be equipped to receive, register, and facilitate the resolution of SEA/SH complaints, including through the referral of survivors to relevant gender-based violence service providers, all in a safe, confidential, and survivor-centered manner.	Maintain and operate the existing mechanism throughout Project implementation.	MOLNR
	INDICATORS FOR IMPLEMENTATION READINESS
	The following actions are indicators for implementation readiness: 1.1.1 Update, disclose, adopt and implement the Environmental and Social Management Framework (ESMF) to include an e-waste management plan and updated exclusions list consistent with this ESCP and relevant ESSs.

ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK ESMF

VERSION 4: ISSUE

Table of Contents
List of Tables ........................................................................................................................................................................................................................................................................................... i
List of Figures ........................................................................................................................................................................................................................................................................................ i
ABBREVIATIONS AND ACRONYMS....................................................................................................................................................................................................................................... ii
1. BACKGROUND ................................................................................................................................................................................................................................................................................ 3
1.1 Project Development Objectives ..................................................................................................................................................................................................................................... 3
1.2 Purpose of the ESMF ............................................................................................................................................................................................................................................................... 4
1.3 Methodology ................................................................................................................................................................................................................................................................................. 4
1.4 Scope of the ESMF .................................................................................................................................................................................................................................................................... 5
2. PROJECT DESCRIPTION .......................................................................................................................................................................................................................................................... 6
2.1 Project Components ................................................................................................................................................................................................................................................................ 6
2.2 Ineligible Activity List .............................................................................................................................................................................................................................................................. 9
3. POLICY, LEGAL AND REGULATORY FRAMEWORK ............................................................................................................................................................................................ 10
3.1 Vanuatu Laws and Regulations ...................................................................................................................................................................................................................................... 10
3.2 World Bank E&S Standard and Guidelines ............................................................................................................................................................................................................ 16
4. ENVIRONMENT AND SOCIAL BASELINE ................................................................................................................................................................................................................... 21
5. POTENTIAL ENVIRONMENTAL AND SOCIAL RISKS AND MITIGATION ............................................................................................................................................... 37
6. Procedures And Guidelines To Screen And Assess Environment And Social Risks And Impacts .................................................................................... 43
7. Public Consultation And Information Disclosure ............................................................................................................................................................................................... 47
8. Institutional Roles, Responsibilities And Capacity ............................................................................................................................................................................................ 48
9. REFERENCES................................................................................................................................................................................................................................................................................ 53
10. ANNEXES ...................................................................................................................................................................................................................................................................................... 54
Annex 1: Environmental and Social Screening Form ............................................................................................................................................................................................ 54
Annex 2: Screening Procedures for Voluntary/Negotiated Land Use Agreements .......................................................................................................................... 59
Annex 3: Indicative ESIA Outline ......................................................................................................................................................................................................................................... 66
Annex 4: Indicative ESMP Outline ...................................................................................................................................................................................................................................... 68
Annex 5: Stakeholder Engagement Plan_Waste Disposal ................................................................................................................................................................................ 70
Annex 6: Labor Management Procedures .................................................................................................................................................................................................................... 86
Annex 7: Occupational Health and Safety Procedure ........................................................................................................................................................................................... 96
Annex 8: Asbestos Containing Material (ACM) Management Guideline ................................................................................................................................................ 100
Annex 9: Construction Waste Management Plan ................................................................................................................................................................................................. 107
Annex 10: Code of Environment Practice (CoEP) for minor works ................................................................................................................................................................ 111
Annex 11: Chance Find Procedure........................................................................................................................................................................................................................................ 117
Annex 12: Vanuatu Land Administration Assessment (Component 3) ...................................................................................................................................................... 118

List of Tables
TABLE 1: SUMMARY OF KEY PROJECT INFORMATION ........................................................................................................................................................................................... 6
TABLE 2: ENVIRONMENT AND SOCIAL SAFEGUARD STANDARD RELEVANT TO VARS PROJECT ......................................................................................... 17 TABLE 3. WORLD BANK ESS AND RELEVANT VANUATU LAWS AND REGULATIONS AND APPLICABILITY TO VARS ............................................. 17
TABLE 4. ENVIRONMENTAL & SOCIAL INSTRUMENTS & TIMEFRAMES .................................................................................................................................................. 37
TABLE 5: ASSESSMENT OF KEY RISKS/IMPACTS AND MITIGATION METHODS FOR DESIGN & CONSTRUCTION ACTIVITIES ......................... 40
TABLE 6: TASKS AND INSTITUTIONAL RESPONSIBILITIES FOR SAFEGUARDS IMPLEMENTATION ..................................................................................... 50 TABLE 7: PROPOSED TRAININGS AND WORKSHOPS FOR THE MOLNR AND PMU ....................................................................................................................... 51
TABLE 8: PROPOSED BUDGET FOR ESMF IMPLEMENTATION ..................................................................................................................................................................... 52

List of Figures
FIGURE 1. AVERAGE PRECIPITATION IN PORT VILA FOR 2020 ...................................................................................................................................................................... 22
FIGURE 2: LOCATION OF THE SETTLEMENTS IN PORT VILLA AND SHEFA PROVINCE ................................................................................................................ 25
FIGURE 3: AERIAL VIEW OF ETAS GREENFIELD SITE ........................................................................................................................................................................................... 28
FIGURE 4. AERIAL VIEW OF OHLEN MATASO SETTLEMENT .......................................................................................................................................................................... 29
FIGURE 5. AERIAL VIEW OF TOKYO SETTLEMENT ................................................................................................................................................................................................... 31
FIGURE 6: AERIAL VIEW OF SEASIDE SETTLEMENT ............................................................................................................................................................................................. 33
FIGURE 7: AERIAL VIEW OF ANAMBURU SETTLEMENT ..................................................................................................................................................................................... 35
FIGURE 8. ISLAND COMMUNITIES WITHIN ANAMBURU .................................................................................................................................................................................. 36
FIGURE 9: SCREENING STEPS FOR ACTIVITIES IN VARS .................................................................................................................................................................................... 45
FIGURE 10: INSTITUTIONAL ARRANGEMENTS .......................................................................................................................................................................................................... 48

ABBREVIATIONS AND ACRONYMS
ACM Asbestos Containing Materials
CoEP Code of Environment Practice
E&S Environmental and Social
ESCP Environment and Social Commitment Plan
ESIA Environmental and Social Impact Assessment
ESHS Environmental, Social, Health and Safety
ESMF Environmental and Social Management Framework
ESMP Environmental and Social Management Plan
ESS Environmental and Social Standards
E&S Environmental and Social
FM Financial Management
GM General Manager
GRM Grievance Redress Mechanism
IPF Investment Project Financing
LMP Labor Management Plan
LMS Land Management Information System
MoLNR Ministry of Lands and Natural Resources
OHS Occupational Health and Safety
PDO Project Description and Objectives
PEA Preliminary Environment Assessment
PMU Project Management Unit
PPE Personal Protective Equipment
SC Steering Committee
SE Stakeholder Engagement
SEF Stakeholder Engagement Framework
TA Technical Assistance
UNELCO Union Electrique Du Vanuatu
VARS Vanuatu Affordable and Resilient Settlement
WB World Bank
WMP Waste Management Plan

1. BACKGROUND
Vanuatu is a small island nation located in the South Pacific approximately 2,000 kilometers to the east of Australia. The population is 300,000 residents and the country is administratively divided into six provinces – Malampa, Penama, Sanma, Shefa, Tafea, and Torba. Shefa Province includes Efate Island in which the capital -- Port Vila – is located. The archipelago of 83 volcanic islands (72 of them inhabited) with approximately 12,200 square kilometers land area, is dispersed over an exclusive economic zone of about 827,000 square kilometers. The economy is characterized by a formal sector driven by tourism and agriculture, and informal subsistence activity outside the main urban centers of Port Vila and Luganville. The country’s poverty rate, based on the national basic needs poverty line, is estimated to be 12.7 percent of the population in 2010. A large proportion of the population (20-50 percent) is concentrated marginally above the poverty line and is highly vulnerable to falling back into poverty. The country ranks 140th out of 189 on the 2019 United Nations Human Development Index, placing it in the ‘medium human development’ category. A significant development challenge facing Vanuatu is high exposure to hydrometeorological hazards (tropical cyclones, floods, and droughts) and geophysical disasters (volcanic hazards, earthquake-related hazards, and tsunamis). In addition, concentration of people and settlements in hazardous areas is significantly increasing the country’s risk profile. Port Vila's municipal boundaries enclose a population of 49,528 (2020 Population and Housing Census), but Greater Port Vila – as a functional city with economic and social connectivity – is home to closer to 114,000 people. Informal settlements are an important gateway to urban opportunities and services for low- and middle-income people alike, providing “access to the city” for a wide range of socioeconomic groups. The majority of population growth in Vanuatu (74 percent) currently occurs outside the Port Vila municipal boundary, in unplanned, unserviced settlements in hazardous areas. As informal settlements continue to expand in an unplanned manner, it increases the exposure to hydrometeorological and geophysical hazards. There are significant demands on land to absorb growth, but there is also an available supply of underutilized land in Greater Port Vila. The impediments to accessing available land include slow and inconsistent planning regulations and approval procedures as well as weak land administration and management processes, including the numerous and lengthy processes for registering a lease (estimated at 632 days). Second, restrictive conditions on housing loans and the cost of housing in Vanuatu mean that a family on the minimum wage cannot realistically afford a small house on the private market. Due to high demand and limited accessibility or affordable supply, people have crowded into the city’s existing housing stock or accessed land through unrecorded, informal occupancy arrangements or kastom (custom) tenure arrangements. To improve management of human settlements and improve housing, the Government of Vanuatu (GoV) has secured a US$25 million project in financing the Vanuatu Affordable and Resilient Settlements Project (VARS). This project directly responds to the need to improve health, economic and social standards of settlement dwellers. This project is inherent to the overall concern for settlements upgrade, sustainable urban drainage, and institutional strengthening to solve future unplanned settlement and urban land use. 1.1 Project Development Objectives The Project Development Objectives (PDO) is to: (i) improve access to and resilience of infrastructure and services in selected new and existing settlements, and (ii) strengthen land planning and management for resilient human settlement. The following are the proposed PDO-level indicators:

The Government of Vanuatu
.Ministry of Lands and Natural Resources (MoLNR)
Vanuatu Affordable and Resilient Settlement Project
& Additonal Financing (P173278)
STAKEHOLDER ENGAGEMENT FRAMEWORK
26 November 2025

1. Introducton

This document is the Vanuatu Affordable & Resilient Settlements (VARS) Stakeholder Engagement Framework (SEF). The SEF is prepared in accordance with the World Bank’s Environmental and Social Framework (ESF), specifically Environmental and Social Standard 10 (ESS10) on Stakeholder Engagement and Information Disclosure. The SEF serves as a strategic guide to ensure meaningful, inclusive, and transparent engagement with all stakeholders throughout the project lifecycle, which includes the
additonal financing.

The primary purposes of the SEF are to:

Promote Inclusive Participation: Provide opportunities for affected communities, government
agencies, civil society, and other stakeholders to share their views, concerns, and suggestions on
project activities.
Enhance Transparency and Accountability: Ensure 􀆟mely disclosure of relevant project
information, including potential environmental and social risks, mitigation measures, and
progress updates.
Strengthen Social License and Ownership: Build trust and foster collaborative relationships
between the project and stakeholders, thereby supporting sustainable outcomes.
Identify and Address Risks: Facilitate early identification of social and environmental risks and
enable stakeholders to contribute to mitigation strategies.
Establish Grievance Mechanisms: Provide accessible channels for stakeholders to raise concerns
and seek resolution in a fair and timely manner.

This SEF is a living document and will be updated as needed to reflect changes in project scope, stakeholder priorities, and lessons learned during implementation. The SEF informs and guides development of site-specific SEPs and aligns with the overarching Social Engagement Framework guiding the VARS project.Sample text. Click to select the Text Element.Sample text. Click to select the Text Element.

2. Objectives

The overall objective of stakeholder engagement in VARS project is to provide a coordinated process in which public information disclosure and consultation of project activities are communicated transparently. Furthermore, this process adds value to making the relationship between project proponents, project implementers and beneficiaries meaningful.

Stakeholder engagement will continue throughout the life of the Project and will include formal scheduled consultations and meetings as well other means of communication. The stakeholder engagement process has three key objectives:

1. Early and ongoing engagement activities with the local urban, ward council authorities and the selected settlement communities who are beneficiaries of the VARS project.
Provide information on the Project and obtain feedback on experiences and outcomes of the Project and its activities.
A Grievances Mechanism to address any public complaints during the implementation of the Project.

3. Stakeholder Mapping and Analysis

To ensure effec􀆟ve and targeted engagement, the Project iden􀆟fies three core stakeholder categories: affected par􀆟es; other interested par􀆟es; and vulnerable groups. Specific stakeholder details will be provided in the forma􀆟on of specific Stakeholder Engagement Plans to be prepared ahead of project works, as per the project’s Environmental and Social Commitment Plan (ESCP). Technical Assistance ac􀆟vi􀆟es will incorporate SEF guidance, consistent with ESS10.

Affected Parties
Affected Par􀆟es comprise persons, groups and other en􀆟􀆟es within the Project Area of Influence (PAI) that are directly influenced (actually or poten􀆟ally) by the Project and/or have been iden􀆟fied as most suscep􀆟ble to change associated with the Project, and who need to be closely engaged in iden􀆟fying impacts and their significance, as well as in decision-making on mi􀆟ga􀆟on and management measures.

The following are considered affected par􀆟es in the context of the VARS components:

Individuals whose households are identified in the assessment to be in direct path of the project corridor of the drainage project,
Individuals whose households are identified in the four settlement sites to be involved in VARS settlement upgrade project,
Neighboring communities who are not selected to part of the settlement upgrade but may experience indirect impacts, and
Local community settlement leaders.

VARS Help Desk The Help Desk is set up to (i) respond to requests for information or requests for project design change, (ii) receive and resolve complaints, and (iii) address and resolve grievances in a timely, effective and efficient manner that satisfies all parties involved. The VARS Complaint Form is available online, with Chiefs at the target settlements or through calling the project management unit on M: +(678) 555 1551 or M: +(678) 774 9233 or via email: This email address is being protected from spambots. You need JavaScript enabled to view it. The Help Desk at the project management unit is established to receive your calls or email and will help project stakeholders to receive information or register a request for design change or to resolve any concerns that may arise as a result of the project. Environmental and Social Management Framework (ESMF): The VARS ESMF has been prepared to assess and manage the environmental and social risks and impacts of the project. The framework provides guidance to the MoLNR and its project management unit to ensure that environmental and social assessments and other safeguard requirements will be carried out in compliance with national regulations and in accordance with the World Bank’s Environment and Social Framework. Environmental and Social Commitment Plan (ESCP) : The ESCP sets out the material measures and actions that the VARS project will meet to apply the World Bank’s Environmental and Social Standards over the project lifecycle. The ESCP will form part of the VARS project and World Bank legal agreement. Stakeholder Engagement Plan Waste Disposal: The project will prepare, disclose and implement site specific stakeholder engagement plans prior to commencing project activity. The attached stakeholder engagement plan as prepared specifically for the Waste Disposal activity, which was carried out in November and December 2023, when 82 truckloads of solid waste were removed from 4 target informal settlements in Port Vila. *The International Development Association (IDA) was established in 160 with aim to reduce poverty by providing zero to low-interest loans (called “credits”) and grants for programs that boost economic growth, reduce inequalities and improve people’s living conditions.