SPC Economic Development Division - strategic plan 2012 - 2017

ECONOMIC DEVELOPMENT DIVISION

2012-2017STRATEGIC PLAN

Sustainable economic development through accessible, affordable,efficient, secure and safe energy, ICT and transport services


2012–2017STRATEGIC PLAN

Prepared by the Economic Development DivisionSecretariat of the Pacific Community

Suva, Fiji2012

© Copyright Secretariat of the Pacific Community (SPC), 2012

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Permission to reproduce the document and/or translate in whole, in any form, whether for

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Original text: English

Secretariat of the Pacific Community Cataloguing-in-publication data

Economic Development Division Strategic Plan: 2012-2017 / prepared by the Economic

Development Division, Secretariat of the Pacific Community

1. Economic development — Oceania.

2. Economics — Oceania.

I. Title II. Secretariat of the Pacific Community

338.995 AACR2

ISBN: 978-982-00-0536-5

S P C E D D S T R A T E G I C P L A N 2 0 1 2 – 2 0 1 7 5

CONTENT

FOREWORD 4

1. INTRODUCTION TO THE ECONOMIC DEVELOPMENT DIVISION AND ITS STRATEGIC PLAN 5

2. INTERNATIONAL CONTEXT 6

3. PACIFIC CONTEXT AND CHALLENGES 8

4. THE SPC RESPONSE 10

5. PRIORITIES 12

6. GOAL AND OBJECTIVES 13

7. OUTPUTS AND KEY PERFORMANCE INDICATORS 14

8. RISKMANAGEMENT 19

9. REPORTING, MONITORING AND EVALUATION 20

10. PARTNERSHIP AND RESOURCES 21

ACRONYMS 22

S P C E D D S T R A T E G I C P L A N 2 0 1 2 – 2 0 1 76

ForewordIt gives me great pleasure to present the first Strategic Plan of the SPC Economic Development Division (EDD), a plan that sets the strategic direction for EDD to support developments in the energy, information and communication technology (ICT), and transport sectors for the period 2012 to 2017.

Established in 2010, EDD is a relatively new division of SPC, formed as a result of SPC’s internal reform process and as a response to the broader reform agenda driven by the Regional Institutional Framework under the Pacific Leaders’ directive. In 2011, considerable effort was put into constructing a divisional architecture to ensure that the work of the energy, ICT and transport programmes is integrated and interlinked to increase efficiency of our service delivery.

Preparation of the strategic plan began in early 2011 and it was approved in November the same year by the 41st Meeting of the Committee of Representatives of Governments and Administrations (CRGA) in Noumea, New Caledonia.

It was considered vital that the strategic plan capture the essence of one of SPC’s three stated aims — that of achieving sustainable economic development. The three dynamic sectors within EDD are crucial in driving such development. And the goal of EDD — sustainable economic development through accessible, affordable, efficient, secure and safe energy, ICT and transport services — is appropriate in driving the EDD programme work plans, which are based on the strategic plan.

Moreover, the strategic plan has been developed in line with the regional responses required of SPC in the implementation of the energy, ICT and transport frameworks — Framework for Action on Energy Security in the Pacific, Framework for Action on ICT for Development in the Pacific, and the Framework for Action on Transport Services. SPC’s coordination role in the three areas places great responsibility on the organisation to ensure that the implementation of these regional frameworks is based on the ‘many partners, one team’ approach.

Guided by the new strategic plan, EDD steps up to assist Pacific Island people to respond effectively to the challenges they face in the energy, ICT and transport sectors and move towards sustainable economic development.

John HoganDirectorSPC Economic Development Division

EDD Director John Hogan


IntroductionEDD pulls together the three key drivers of economic growth – energy, information and communication technology (ICT), and transport. These drivers constitute the three pillars of the division.

The Strategic Plan (2012–2017) for EDD combines the sectoral fields of maritime and aviation transport, energy and ICT. It builds on achievements of SPC’s previous Regional Maritime Programme, and SOPAC’s Energy and Digital Outreach Programmes, and sets out the strategic direction for EDD over the next six years (2012–2017).

The main services delivered by the division for the period 2012 to 2017 will be: coordination and monitoring and evaluation; provision of policy, planning, technical and legal advice; investment in human capital and institutional strengthening; and supporting the provision of affordable, efficient, secure and safe energy, ICT and transport services.

IntroductiontotheEconomicDevelopmentDivisionanditsStrategicPlan

Background

The Secretariat of the Pacific Community (SPC) is an international organisation that provides technical and policy advice and assistance, training and research services to its

Pacific Island members. SPC works in a wide range of sectors with the aim of achieving three development outcomes — sustainable economic development, sustainable natural resource management and development, and sustainable human and social development. SPC’s work programme is determined by members, and all of its regional initiatives aim to support members’ national policies and plans.

The establishment of the Economic Development Division (EDD) in January 2010 was a culmination of SPC’s internal reform process, as well as a specific response to the broader reform agenda under the auspices of the Regional Institutional Framework (RIF).

At their special joint meeting (7–8 July 2009) and subsequent separate meetings (9 and 10 July 2009), the governing bodies of SPC, the Pacific Islands Applied Geoscience Commission (SOPAC) and the Secretariat of the Pacific Regional Environment Programme (SPREP) agreed on the rationalisation of SOPAC programmes between SPC and SPREP. SPC’s governing body also acknowledged the proposed transfer of the transport, infrastructure and communication functions of the Pacific Islands Forum Secretariat (PIFS) to SPC, effective from 1 January 2010, but noted that the proposed transfer would not be accompanied by financial resources.

In August 2009, the 40th Pacific Islands Forum Leaders Meeting convened in Cairns, Australia. The leaders welcomed the decisions taken by the respective governing bodies on the new institutional arrangements and endorsed this through the Cairns Forum Communiqué.

As a result of the above decisions, EDD became operational on 1 January 2010 and set up office at SPC’s Regional Office in Suva, Fiji. EDD also has staff located in other Pacific Island countries and territories such as New Caledonia, Federated States of Micronesia, Palau and Marshall Islands.

1.


Internationalcontext

2.

The challenges facing the global community with regard to developments in the energy, ICT and transport sectors are widely known and acknowledged by world leaders and

decision-makers. Recognising the economic potential of these sectors, attempts have been made to address these challenges through the adoption of international conventions, codes, resolutions and outcomes to support regulation and development of these sectors. This section provides a brief overview of the significance of these sectors, the challenges and the key decisions taken by the international community.

EnergyIt is estimated that 1.5 billion people worldwide have no access to electricity and that one billion have access to unreliable electricity. It has been proven that access to modern energy is directly related to poverty as well as to the attainment of the Millennium Development Goals.

In 2008, 81.3% of the world’s energy supply came from fossil fuel. Greenhouse gas emission is largely from the combustion of fossil fuel.

The global community has adopted the goal of limiting the temperature rise to 2°C and for atmospheric greenhouse gas concentrations to remain below 450 parts per million (ppm). The global technological potential for renewable energy is substantially higher than the current and projected energy demand, and renewable energy sources and energy efficiency offer promising opportunities for addressing climate change.

As such, three 2030 energy goals — universal access, 40% energy intensity reduction and a global energy mix of 30% renewables — are proposed to be adopted through the RIO +20 process.

ICTICT is globally recognised as a key tool for development. The World Summit on the Information Society reaffirmed that everyone can benefit from the opportunities that ICTs offer, by recalling that governments and key stakeholders should work together to improve access to information and communication infrastructure and technologies, to build capacity, to increase confidence and security in the use of ICTs, to create an enabling environment at all levels, and to encourage international and regional cooperation.

The key roles of ICT in development are further supported by Resolution 64/187 of the United Nations General Assembly, of 21 December 2009. Dealing with ICT for development, it recognises the importance of partnerships with all relevant stakeholders in enhancing access to ICT, and the potential ICT has to provide new solutions to development challenges, particularly in the context of globalisation. ICT can foster economic growth, competitiveness, access to information and knowledge, poverty eradication and social inclusion that will help to expedite the integration of all countries, particularly developing countries, into the global economy.

The growing importance and remarkable uptake of ICT world-wide is reflected in the following figures (source: ITU):1. The number of Internet users doubled between 2005 and 2010. Internet

users were over the two billion mark in 2010, of which 1.2 billion were in developing countries.

2. By the end of 2010, there was an estimated 5.3 billion mobile cellular subscriptions worldwide, including 940 million subscriptions to 3G services.

3. The developing world is increasing its share of mobile subscriptions from 53% of total mobile subscriptions at the end of 2005 to 73% at the end of 2010.

4. The total number of SMS sent globally tripled between 2007 and 2010, from an estimated 1.8 trillion to a staggering 6.1 trillion. In other words, close to 200 000 text messages were sent every second.

5. While in developing countries 72.4% of households have a television, only 22.5% have a computer and only 15.8% have Internet access (compared to 98%, 71% and 65.6% respectively in developed countries).

6. At the end of 2010, half a billion households worldwide (or 29.5%) were estimated to have access to the Internet.


TransportShipping is seen as the most international of all the world’s great industries and one of the most dangerous. To ensure safety and security of ships, crew and passengers and prevention of pollution from ships worldwide, the International Maritime Organization (IMO), since its inception in 1959, regulates international shipping through the development and adoption of international maritime conventions (over 30 conventions).

The economic significance of maritime transport is shown by the fact that more than 90% of global trade is carried by sea. IMO reports that, throughout the last century, the shipping industry has seen a general trend of increases in total trade volume. Increasing industrialisation and the liberalisation of national economies have fuelled free trade and a growing demand for consumer products. Advances in technology have also made shipping an increasingly efficient and swift method of transport.

The importance of maritime transport is further reflected by the following facts and figures (Source: IMO, 2011):1. World seaborne trade figures (i.e. the amount of goods actually loaded

aboard ships) have increased considerably since the 1970s and in 2008, reached 8.2 billion tons of goods loaded.

2. Developing countries continued to account for the largest share of global seaborne trade (61.2% of all goods loaded and 55% of all goods unloaded), reflecting their growing resilience to economic setbacks and an increasingly leading role in driving global trade.

3. As at December 2010, today’s world fleet of propelled sea-going merchant ships of no less than 100 GT comprises 103,392 ships of 958 million GT with an average age of 21 years; they are registered in over 150 nations and manned by 1.5 million seafarers of virtually every nationality.

4. Integrated navigation systems (including ECDIS and electronic navigational charts) have become the norm (with AIS and LRIT used for both navigational safety and security purposes), while the concept of e-navigation seems set to open doors to enhanced berth-to-berth navigation, including new ways of tracking and monitoring vessels at sea.

5. According to a UNEP study, about 80% of the pollution in the world’s oceans originates from land-based activities, with the maritime sector representing just 10% of human sources of marine pollution.

6. International shipping was estimated to have emitted 870 million tonnes, or about 2.7% of the global emissions of CO2 in 2007.

Regulation of the civil aviation sector is essential to promote safety and security and to comply with international obligations. In keeping with the rapid evolution of air transport through the years, members of the International Civil Aviation Organization (ICAO) have agreed on about 10,000 technical and operational standards and hundreds of agreements to help regulate the aviation industry.

Furthermore, to ensure that aviation develops in an environmentally sustainable manner, ICAO members have agreed on stringent engine emissions standards, effective operational measures and comprehensive environmental policies, including agreeing to a global 2% annual improvement in fuel efficiency by the year 2050 and developing a global CO2 standard for aircraft.

ICAO also forecasts a rapid and sustained growth in air traffic over the coming years and predicts that, despite the current global economic context which will impact air traffic in the short term, civil aviation development is expected to regain momentum.


Pacificcontextandchallenges

3.

The energy, ICT and transport sectors in the Pacific region are huge sectors on their own, each contributing to significant economic and social development of PICTs. The sectors

also face numerous challenges that hamper sustainable development and progress. These challenges and issues are highlighted in this section.

EnergyEnergy security is fundamental to achieving the social and economic development aspirations stated in the Pacific Plan. Energy underpins all aspect of socio-economic development, ranging from production, storage

and transport to health, education and the sustenance of livelihoods. Without energy, there can be no sustainable Pacific communities.

The key challenge to the energy sector of PICTs is the heavy reliance on fossil fuel with its detrimental economic and environment impacts. Fossil fuel accounted for 95% of the total Pacific energy supply in 2006 — almost 99% if we exclude Fiji and Papua New Guinea (PNG).

This heavy dependency exposes the economic vulnerability of PICTs to the volatility of the prices of petroleum products. The increase in the price of petroleum from 2002 to early 2008 cost most PICTs about 10% of their gross national incomes, with impacts falling disproportionately on those with

low incomes. In 2008, when the cost of a barrel of oil rose to more than USD 100, Fiji’s imports increased by almost 25%, inflation rates in Kiribati and the Republic of the Marshall Islands (RMI) soared by 18.6% and 17.5% respectively, Fiji’s inflation rose to a record high of 7.7%, and he value of the RMI Compact Trust Fund and the Kiribati Revenue Equalizer Trust Fund declined by an estimated 20%. Fiji’s economy contracted by 2.5%, Palau’s by 3% while the Solomon Islands and Tonga declined by 0.4%. The rising oil prices in 2008 forced the RMI government to declare a state of emergency when its power utility was unable to cope with the heavy fuel bills.

About seven million people out of the region’s ten million still do not have access to electricity and the electricity that is supplied to the three million is mostly fossil fuel based electricity. Given the physical distance, the lack of economy of scale and the weak PICT economies, affordability of energy is a major burden at both the macro and micro levels. About 75% of petroleum products in PICTs is used in transportation while 25% goes to power generation; the energy efficiency of these two areas needs major improvement.

PICTs are among the most vulnerable nations of the world to the impacts of climate change, and greenhouse gas inventories of PICTs shows that the energy sector is the major emitter of GHG.

ICTICT is internationally recognised as a key tool for sustainable development. It is therefore essential that the full potential of ICT is harnessed for the benefit of all Pacific people, especially the marginalised or disadvantaged groups. People need information if they are to be able to effectively engage with their governments, and they must be able to communicate freely if they are to meaningfully guide their own development destinies. In recent years a lot of effort has been directed to promoting the benefits of ICT and how it can address the challenges of PICTs and contribute to development at international, regional, and national levels.

The Pacific region faces numerous challenges, including lack

of economy of scale, poor infrastructure, widely dispersed population, lack of capacity, and weak policy and legislative frameworks. It is therefore important to have strong and effective policy and regulatory frameworks to create an enabling environment for ICT development and to promote fair competition. Unfortunately, only 50% of PICTs have an open telecommunication market, so only a few countries are benefiting from competition, which has resulted in dramatically reduced prices for calls, SMS and internet access and markedly improved quality of services.

With greater access to ICT, there is a need to provide an appropriate legislative framework to protect users and build confidence in the use of ICT. Issues relating to using ICT for criminal purposes (cybercrime) need to be addressed, and it is especially important to protect children using ICT.


TransportTransport services link all aspects of socio-economic development, ranging from transfer of agricultural produce, value-added trade and migration to the provision of essential services in health and education, as well as evacuation and disaster assistance relief for all communities. However, achieving economies of scale in transport service provision in PICTs is complicated by virtue of size, geographical dispersion (in some instances remoteness) over vast areas of ocean and the nature of terrain that, in many instances, is unsuited for the operation of conventional aircraft and maritime vessels.

The Pacific is a region where immense distances translate to high unit costs for services and goods, including those relating to the transport industry that PICTs rely on for much of their supply of goods and health and education services, movement of people and cargo. National and regional policies need to acknowledge the cross-cutting nature of transportation services and their importance to sustainable economic and social development. Involvement of stakeholders outside the transport sector in developing solutions to achieving safe and secure transport services in the Pacific must be acknowledged and harnessed.

The bulk of regional transport services, whether air or sea, is operated by the private sector with some public sector ownership. As a key driver to economic growth, private sector participation in the transport sector is imperative.

The Pacific can ill-afford the economic, social, political and life-threatening costs associated with non-compliance of internationally accepted transport safety and security standards.

As transport is also a key driver of sustainable development, leadership at the highest level, both nationally and regionally, is crucial to establishing plans that will create the right enabling environment for improved regional transport services for PICTs in the long term. The long-standing concern of irregular

transport continues to affect PICTs and thus dominates the agenda of their leaders. Achieving a country’s desired development level, with appropriate transport efficiencies, requires a coordinated and comprehensive approach from governments and partners. It is widely accepted that small island states (SIS) in particular face unique and difficult challenges because of their vulnerability to natural disasters and adverse weather conditions, which add to costs through the high insurance premiums transport operators face in providing services and the increasing regulatory costs that impact the industry more generally. All of these (combined with thin routes, long distances, low technological application, limited resources and general inefficiency) could be argued to distort the market for SIS transport, impacting negatively on SIS economies.

In the market for transport services, these challenges have translated into features that make it very difficult for good quality, affordable services to be provided regularly and efficiently. SIS consist of small market economies which demand low volumes of imported cargo and usually generate insufficient or negligible outbound export cargo resulting in high freights rates and irregular services. These high freight rates are also compounded by the high cost of fuel; the high port costs (generated, where present, by large infrastructure development and maintenance costs); and inadequate port facilities (which delay offloading processes).

Most PICTs are spread over a wide area and this tyranny of distance is a major obstacle to providing domestic connectivity due to capital costs involved. There is a need to look at accessible and affordable ICT, such as tele-centres and VSAT solutions, particularly for rural and remote areas and islands, as they tend to be the most vulnerable. The expense of international capacity also continues to be a major issue. There remains heavy reliance on satellite services for the very sparsely distributed, relatively small PICTs but submarine fibre optic cables are now increasing deployed in larger PICTs.

To address these concerns, there is a need to strengthen ICT human capacity and to recognise the different needs to develop and retain skilled users and a professional ICT workforce.

As there are many partners working in the ICT sector it is essential to enhance coordination of ICT activities to

reduce duplication and maximise the impact of the limited resources in the sector. Mechanisms need to be established to facilitate regular dialogues between stakeholders and encourage sharing of information.


TheSPCresponse

4.

SPC’s establishment of a new technical division for economic development as part of its response to the reform of regional institutions, brought together three key drivers of

economic development – energy, ICT and transport — providing an outstanding chance for PICTs to harness the potential offered by an integrated approach, and opportunities to better achieve national development targets in areas to which these sectors contribute. The mandates and key responsibilities of the three EDD programmes are outlined in this section.

Energy ProgrammeOn 1 January 2010, SPC assumed the lead agency role in the energy sector as mandated to it by the Pacific Energy Ministers; the joint meeting of the governing bodies of SOPAC, the Secretariat of the Pacific Regional Environment Programme (SPREP) and SPC; and the Forum Leaders. The mandate was approved by the Sixth Conference of the Pacific Community, held in Tonga on 12–13 October 2009.

The EDD Energy Programme’s key role of the lead coordination agency for the regional energy sector is that of providing leadership for, and improving the profile of energy as a

key priority sector in the Pacific islands region. In this regard the Energy Programme of the EDD will focus on the following key responsibilities:

coordination and facilitation of accountability and cooperation in the energy sector, including support to the Pacific Power Association;

advisory support to PICTs to better plan and manage their energy sectors; petroleum advisory aimed at fair, cheaper, cleaner, more cost-effective and more reliable supplies; productive uses of renewable energy for economic development/project management supplement and coordination; energy efficiency in the transport sector; and coordination of regional energy/mitigation funding proposals and the monitoring and evaluation of the energy sector.

Its effort is guided by the Forum-adopted and ministerial endorsed Framework for Action on Energy Security in the Pacific and its implementation plan, which outlines a new approach to improving energy security in the region. It acknowledges the primacy of national energy policies and plans/roadmaps as the principal means for achieving energy security.

Pacific ICT Outreach ProgrammeThe PICTO Programme was formed under EDD in response to RIF, which resulted in a merger of the ICT outreach activities of SOPAC and SPC, and transferring over the PIFS ICT functions to PICTO on 1 April 2010.

The overall objective of PICTO is to coordinate ICT developments in the Pacific, focusing on national priorities, including developing conducive ICT policy and regulatory frameworks for development, enhancing government services, building local ICT capacity and facilitating provision of accessible and affordable ICT services.


In this regard, the programme focuses on the following key responsibilities:

provide leadership and enhance coordination and collaboration in the ICT sector, recognising the Pacific ICT needs and priorities;

provide support and assistance to ensure PICTs have effective national ICT policies, and regulatory and legislative frameworks;

strengthen ICT human resource capacity; enhance ICT access to Pacific communities, especially to rural and remote islands; and support effective utilisation of ICT to deliver efficient and inclusive government services; and monitor and evaluate ICT development in the Pacific.

Its effort is guided by the ministerial endorsed Framework for Action on ICT for Development in the Pacific and its implementation plan, which outlines a new approach to developing and improving ICT services to support development, strengthen governance and improve the livelihoods of communities in the Pacific region.

Transport ProgrammeThe Transport Programme became operational on 1 January 2010 under the RIF process. The main objective of the programme is to coordinate developments in the maritime and aviation transport sectors in the Pacific region, focusing on national priorities, including developing transport policies and regulatory frameworks to ensure safe and secure transport services. In this regard, the programme focuses on the following key responsibilities:

facilitate leadership, governance, coordination and partnerships; support effective transport policy, and regulatory and legislative frameworks; strengthen transport human resource capacity; enhance transport services to Pacific communities, including rural and remote islands; support effective technical services to ensure safe and secure transport; and monitor and evaluate transport development in the Pacific region.

SPC is the only regional agency dealing with maritime matters in the Pacific region and it is the implementing body for IMO’s Technical Cooperation Division activities. The work of SPC in the aviation sector complements the work of the Pacific Aviation Safety Office. SPC has a major regional role to play in ensuring PICTs comply with international and regional maritime instruments and that there are systems and structures in place to align national frameworks with these ratified requirements. The SPC Transport Programme also coordinates the implementation of the Framework for Action on Transport Services in collaboration with PICTs, regional maritime associations and development partners. The framework was endorsed by PICT transport ministers in April 2011 in New Caledonia.

Cross-cutting issuesThe energy, ICT and transport sectors are highly interdependent. For example, ICTs rely on power, which, in most PICTs, relies on petroleum products and renewable energy. Power plants rely on transport services (by sea and road) to deliver the petroleum products or renewable energy implements, but ships, trucks and planes rely on petroleum products. Each of these three sectors cannot do without the other, yet in many jurisdictions each is managed by a different ministry or department or private sector entity. It would appear that greater synergies and efficiencies could be achieved through integrated approaches to planning and managing these sectors for maximum development impacts. The three sectors have numerous cross-cutting impacts and SPC will endeavour to harmonise work across the sectors and gain maximum synergy.


The priorities for EDD over this planning period will be to:

promote sustainable development of the energy, ICT and transport sectors in the Pacific;

empower policy and decision-makers;

assist PICTs meet their obligations under relevant regional and international instruments and maintain compliance as required;

implement SPC’s regional responsibilities under the energy, ICT and transport frameworks;

improve inter-agency cooperation in implementation of activities to maximise resource utilisation and reduce duplication of efforts; and

increase linkages with other sectors to promote further development of these sectors.

Priorities

5.


TThe EDD Strategic Plan links to the SPC Corporate Plan.

SPC’s mission To help Pacific Island people position themselves to respond effectively to the challenges they face and make informed decisions about their future and the future they wish to leave for the generations that follow.

EDD’s goal

Sustainable economic development through accessible, affordable, efficient, secure and safe energy, ICT and transport services

Objectives

EDD has five objectives for the period 2012 to 2017:

Objective 1: Strong leadership, good governance, and effective multi-sectoral coordination and strategic partnerships, including monitoring and evaluation, in the energy, ICT and transport sectors;

Objective 2: Effective policies, plans and regulatory frameworks that provide an enabling environment for economic development;

Objective 3: Strengthened institutions and expertise in the energy, ICT and transport sectors;

Objective 4: Improved access to affordable and efficient energy, ICT and transport services; and

Objective 5: Secure, safe and environmentally friendly energy, ICT and transport services.

Goalsandobjectives

6.


Main activities Key performance indicators Means of verification

Output 1.1: Regional interventions and coordination support national energy, ICT and transport priorities

(i) Convene stakeholder meetings, including JCS activities, to facilitate decision-making

Meeting outcomes address national priorities Meeting reports and outcomes and status of outcomes

(ii) Establish and utilise effective coordinating mechanisms for regional energy, ICT and transport initiatives

Strategic partnerships established between SPC and partner agencies

International associations and agencies continue to support the sectors

Oversight groups continue to provide direction to regional priorities

Signed MOUs and agreements Joint activities continue to involve all

stakeholders Oversight group interventions

(iii) Regularly review coordinating mechanisms and partnerships to ensure continuous demonstrable effectiveness

Regional coordinating mechanisms adopted, implemented and regularly reviewed

Records and reports of collaborative activities

Review reports

Output 1.2: Effective monitoring and evaluation mechanisms established and utilised

(i) Identify and establish standardised indicators for energy, ICT and transport sectors, including sectoral monitoring and evaluation mechanisms

Sector indicators standardised and updated within the sectors

Sector monitoring and evaluation guidelines developed and shared

Sectoral reports include indicators Monitoring and evaluation records

(ii) Integrate sector economic analyses Economic analyses mainstreamed into energy, ICT and transport

Sectoral reports include economic analyses

Outputsandperformanceindicators

7.

Objective 1Strong leadership, good governance, and effective multi-sectoral coordination and strategic partnerships, including monitoring and evaluation, in the energy, ICT and transport sectors

Multiple stakeholder partnerships are required at national level among government, private sector and non-state actors, as well as at the regional level among development partners and international/regional agencies to successfully implement enabling policies that encourage investment and sustainable development. Strategic alliance opportunities, when seized, will enable regional initiatives to support national priorities through resource mobilisation, coordinated reporting and implementation of robust monitoring and evaluation mechanisms.



Output 2.1 Assistance provided in the development and regular review of policies, plans and regulatory frameworks

(i) Assist in development of energy, ICT or transport policies and plans as required

Assistance provided to PICTs, as requested, in development and regular review of policies, plans and regulatory frameworks

Project reports Trip reports

(i) Develop, review and update generic laws and assist PICTs adapt them for national adoption

Generic laws developed, reviewed and updated to include emerging issues and technology

Regulation and legislation implementation status/ME report

(ii) Provide policy and legal advice to PICTs on energy ICT and transport

Policy and legal advice provided as requested Programme reports

Output 2.2 Accessible data and information for policy development and planning

(i) Facilitate the collection, storage and interpretation/analyses of data and information

Increased use of ICT tools for data collation enhanced in PICTs

PICT data collected, stored, analysed and interpreted

Sectoral data collected and databases regularly updated

(ii) Develop and maintain regional system of integrated online databases

Integrated databases maintained for policy and planning

Online databases utilised

Output 2.3 Advocacy and information dissemination within the energy, ICT and transport sectors improved

(i) Advocate and raise awareness of the key roles of the sectors in economic development

Increased visibility and recognition of the key roles of the sectors in economic development

Stakeholder feedback

National development plans and strategies

(ii) Produce, publish and disseminate a range of information material and promote accessibility to information through applicable technology

Regular publications produced and disseminated

Databases and websites maintained and current

Accessibility of published information improved

Publications record

Website hit counter

Stakeholder feedback

Objective 2Effective policies, plans and regulatory frameworks that provide an enabling environment for economic development

Many Pacific Island countries and territories lack comprehensive, effective energy, ICT and transport policies and legislative frameworks. To provide the necessary policy and legislation in these sectors, EDD will assist countries to develop and update policy and legislative frameworks that conform to international standards and conventions, and are appropriate in both national and regional contexts.

One of the obstacles to efficient management of the energy, ICT and transport sectors is a lack of robust, accurate, updated data for the region. Comparative and economic analyses of relevant data can provide national and regional decision-makers with reliable information that will support policy development and planning.

Given the general difficulty of accessing information about issues affecting the energy, ICT and transport sectors, EDD will provide information services in the form of newsletters, bulletins, advisories, awareness publications and an enhanced website. The website is intended to eventually become a ‘one-stop-shop’ for information on these sectors.



Output 3.1: Key target groups trained

(i) Provide appropriate human capacity upskilling to key target groups in the energy, ICT and transport sectors

Key target groups skills improved in EDD sectors Training records

(ii) Explore and recommend cost-effective delivery of training

Cost-effectiveness of training delivered improved Training records

(iii) Assist PICTs to develop succession plans and retention strategies for professional resources

National retention strategies and succession plans developed and evaluated regularly

Succession plans reviewed

(iv) Develop and update training standards and assist PICTs adapt them for national adoption

Training curricula appropriate and compliant with international standards adopted

National training standards meet appropriate criteria

Output 3.2: Technical advice and assistance provided

(i) Provide technical advice and assistance in energy, ICT and transport sectors to assist in improving the delivery of sectoral services

Appropriate technical advice and assistance successfully delivered and key outcomes/impacts reported to PICTs, including technological advances that lead to the improvement of services in the three sectors

Technical assistance reports

(ii) Update PICTs on technological advances and sustainable solutions that lead to the provision of improved energy, ICT and transport services

Technical assistance reports

Output 3.3: Networks of regional experts utilised

(i) Promotion and use of networks of regional expertise, including maintaining an up-to-date database of regional experts

Regional experts involved in all development activities and initiatives, where appropriate

EDD to maintain up-to-date databases of regional experts

Use of regional experts in development projects

Databases updated

Objective 3Strengthened institutions and expertise in the energy, ICT and transport sectors

The main aim of EDD’s investment in human capital is to develop human resources in PICTs in the energy, ICT and transport sectors through training, technical advice and assistance and utilisation of regional expertise. Where expertise is limited, capacity supplementation becomes vital to progress developments in PICTs. Given the limited resources available at national level, there is a need for a long-term regional approach to ensure the energy, ICT and transport sector’s sustainability and good management. In this regard, established networks of regional expertise have been found to be a useful resource for advice and decision-making. EDD will continue to support these resources and envisages that these multi-stakeholder partnerships will continue to grow, strengthening the expertise and capacity of PICTs for enhancing developments in the energy, ICT and transport sectors.



Output 4.1: Accessible and affordable services

(i) Encourage participation of private sector including cost effective market solutions and demand aggregations for greater access and affordability

PPP established Improved access and affordability

Technical assistance reports Sector indicators

(ii) Support the development and improvement of infrastructure including operations and maintenance, through use of forward thinking, research and development

Proposed regional solutions considered undergo comprehensive assessment/analysis prior to adoption

Infrastructure development meet international and recognised standards

Technical assistance reports Sector indicators

Output 4.2: Efficiency gains promoted and measured

(i) Promote efficiency gains including benchmarking, tariff structures and subsidies

Sector benchmarking completed Tariff and subsidy benchmarked Energy use improvement across sectors

Sector indicators Benchmarking reports Energy sector reports

(ii) Reliability measuring and economic analysis Economic analysis includes reliability measuring Sector indicators Analysis reports

Objective 4Improved access to affordable and efficient energy, ICT and transport services

Reliable, higher capacity and affordable international connectivity requires substantial investment and regional collaboration. Sustainable domestic transport services can be achieved only if a favourable environment is provided to improve their reliability, affordability, safety and security. National energy security in PICTs is inextricably tied to secure petroleum products supply chains and viable renewable energy sources and technologies. Improving production, supply and accessibility of power to all PICT households and communities requires coordinated efforts nationally and regionally. Improved domestic connectivity and access to ICT depends on availability of power and is dependent on reliable infrastructure. The identification of synergies across these sectors can maximise improved access for all PICTs and thus promote economic and social development initiatives.



Output 5.1: Safety and security compliance maintained with international and recognised standards

(i) Establish a sustainable monitoring and evaluation programme to assist PICTs maintain compliance with safety and security standards

Safety and security compliance programmes implemented

Sector guidelines developed and shared

Compliance reports

(ii) Support trained and qualified auditors within PICT energy, ICT and transport sectors

Auditor training event organised with audit logs and reports maintained

Audit logs and reports

Output 5.2: Strengthening of regional security initiatives

(i) Encourage closer linkages with agencies who have responsibility for security, including security of supply

Information sharing strengthened with repositories for regional data identified

Partnerships with regional security-related agencies

MOUs and partnerships agreements

(ii) Raise awareness on regional security issues and threats

Security awareness programmes implemented Increased use of services Reduction in incidents

Security systems maintain compliance

Sector indicators

Output 5.3: Strengthening of regional safety systems

(i) Encourage closer linkages with agencies who have responsibility for safety systems

Information sharing strengthened with other agencies Robust safety systems in place

MOUs and partnerships agreements

(ii) Raise awareness on regional safety issues Safety awareness programmes implemented Increased use of services Reduction in incidents and accidents

Safety systems maintain compliance

Sector indicators

Output 5.4: Best practice systems used in sector management

(i) Introduction of best practice systems in management of sectors, including support for cross-cutting issues such as gender, climate change and food security

Best practice systems implemented Systems audited

Sector indicators Audit system

Objective 5Secure, safe and environmentally friendly energy, ICT and transport services

Lack of compliance with international obligations can have adverse effects on critical services, trade and economy of PICTs. To support PICTs in delivering secure, safe and environmentally friendly energy, ICT and transport services, a robust regional monitoring and evaluation programme is required to ensure PICTs maintain compliance with international and recognised standards. Safety and security, in particular, are two important areas that require greater focus and need to be strengthened through collaborative efforts with relevant agencies and awareness programmes. Introduction of best practice systems is also necessary for effective management of sectors, including support for cross-cutting issues such as gender, climate change and food security.


Risks that threaten the ability of the division to deliver on these objectives and activities can be divided into those that are internal, to the extent that they may reduce the capacity of programmes to perform (funding, staffing levels, management), and those that are external, in that they may prevent the uptake and effective use of programme services and advice in member countries and territories (political will, capacity of national institutions, regional solidarity).

The impact of some EDD activities may be limited by:

• attempting to provide equal services to all PICTs, rather than tailoring activities to their capacity and needs;

• working mainly with government bodies to the exclusion of the private sector and non- governmental organisations that are active in the field; and

• responding slavishly to country requests, when it is clear that some of these are ill- considered and that other activities (not requested) may be more necessary.

Riskmanagement

8.

Risk Strategies to address and/or mitigate risk

Inadequate resourcesInadequate funding to implement work programmes

• Wellstructuredfundingproposals• Identificationofnewfundingsources• Efficientservicedeliverybalancedagainstlimitedresources

Uptake of policy and technical adviceAkeyrisktoimprovingsectorperformanceiswhenpolicyandtechnicaladviceisnottranslatedintoaction

• Developmentofmanagementmeasures• Inclusiveconsultationespeciallywithprivatesector• Effectivecommunicationforgreaterawarenessamongdecision-makersandthepublic

Capacity issuesHighturnoverofstaffandlossofsenior,experiencedstaff

• Targetedinstitutionalstrengthening• e-learningandtrainingoftrainersapproach• Workingwithotherstakeholderswhereappropriate• Tailoredcapacityretentionmeasures

National responsibilitiesNationalresponsibilitiesnotimplemented,preventingthesuccessfuldeliveryofregionalinitiatives

• Increasedfollow-uponJCSactivities• Auditrecommendations• Seniormanagementbriefingswithcapacitysupplementation

Lack of political support and local championsOthersectorstakepriority,whichaffectspoliticalwilltoprogressdevelopmentsinthissector

• Increasedawareness• Pilotprojects• Sharingofsuccessstories• Sensitisingpolicymakersandlegislators

Outdated lawsLackofcurrentlawsthatdealwithnewandemergingbreachesandthataccordproportionatepenalties

• Indepthlegalaudittrails• Increasedawarenessofneedforupdatedlegislation• Legislativereviewofgenericmodels• Comparativeanalysisoflawsacrosssubregions

Overwhelming external factors

Competingdemandsforreportingonalreadyoverloadednationalstaff

couldresultinpoorornoreportssupplied

• Standardisedreportingtemplates

• Adviceonintegrateddatabases

• Capacitysupplementationforsmallerislandstates

Improved effectiveness of the JCS process in identifying effective and achievable activities in each PICT through wide consultation will play an important role in resolving these problems. Similarly, the sectoral frameworks and implementation plans provide a more proactive approach for regional interventions that support national priorities. EDD will also utilise the SPC Risk Management Guidelines to protect the interests of its staff, development partners, stakeholders, service quality, assets, obligations and reputation.

Some major risks identified and the strategies to address them are listed in the table below.


Annual progress reports and work plans are provided to SPC Executive and donors, where applicable, with a six-monthly update. This is in addition to specific programme reports and any exceptional reporting. Heads of agencies and technical meetings have the opportunity to examine and comment on the division’s work and the programmes are monitored annually by Conference or CRGA. Independent reviewers evaluate the division every few years as part of SPC’s programme of regular reviews. These evaluations focus on results at the goal and objective levels. Internal and external auditing of EDD’s operational procedures will also be performed according to its quality management system as measured against international models of business excellence.

Reporting,monitoringandevaluation

9.


EDD collaborates with a number of regional organisations and development partners to scale up and improve coordination of sustainable financing mechanisms, as well as to jointly deliver services. The division also works closely with a number of international organisations and associations and maintains close linkages with developed SPC member countries on current professional and industry matters. EDD also works in collaboration with other SPC divisions and programmes on aspects ranging from corporate-wide systems, recruitment and training issues to safety, security and joint project delivery.

EDD personnel would ideally include 52 full-time and three short-term staff — 36 in positions advertised internationally and 19 in positions advertised locally. Funding has traditionally been intermittent at best, which prevents long-term sustainable planning for delivery of services. The uncertainty of long-term funding impacts EDD’s work activities and staffing levels and makes it difficult to effectively plan future interventions. Long-term funding support would assist with planning for emerging issues and enable the division’s response to be delivered in a timely manner. Currently, many of the deliverables under the annual work plan are funded through short-term projects, but on-going technical assistance, capacity development and supplementation require longer-term funding arrangements.

Partnershipandresources

10.


3G Thirdgeneration

AIS AutomaticIdentificationSystem

CO2 Carbondioxide CRGA CommitteeofRepresentativesofGovernmentsandAdministrations

CROP CouncilofRegionalOrganisationsinthePacific

ECDIS ElectronicChartDisplayandInformationSystem

EDD Economic Development Division

FAESP FrameworkforActiononEnergySecurityinthePacific

FAIDP FrameworkforActiononICTforDevelopmentinthePacific

FATS FrameworkforActiononTransportServices

GHG Greenhouse gas

GIS Geographicinformationsystem

GT Gross tonnage

ICAO InternationalCivilAviationOrganization

ICT Informationandcommunicationtechnology

IMO InternationalMaritimeOrganization

ISO InternationalOrganizationforStandardisation

ITU InternationalTelecommunicationUnion

JCS Joint Country Strategy

LRIT Long-RangeIdentificationandTracking

ME Monitoringandevaluation

MOU MemorandumofUnderstanding

ACRONYMS


PacRICS PacificRuralInternetConnectivitySystem PICTO PacificICTOutreach

PICTs PacificIslandcountriesandterritories

PIFS PacificIslandsForumSecretariat

PPA PacificPowerAssociation

PPP Public Private Partnership

PNG Papua New Guinea

ppm parts per million

RIF RegionalInstitutionalFramework

RMI RepublicoftheMarshallIslands

SIS Small island states

SMS Short message service

SOPAC PacificIslandsAppliedGeoscienceCommission

SOPs Standardoperatingprocedures

SPC SecretariatofthePacificCommunity

SPREP SecretariatofthePacificRegionalEnvironmentProgramme

UN UnitedNations

UNEP UnitedNationsEnvironmentProgramme

USD UnitedStatesdollar

USP UniversityoftheSouthPacific

VSAT Very small aperture terminal

WSIS WorldSummitonInformationSociety


Secretariat of the Pacific Community2nd Floor, Lotus Building, Nabua,Private Mail Bag, Suva, FijiTel: +679 337 0733 | Fax: +679 337 0146Email: [email protected]: http://www.spc.int/edd

Documents

SPC Economic Development Division - strategic plan 2012 - 2017