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Technical Assistance Consultant’s Report
This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design.
Project Number: 36111-013 December 2018
Maldives: Kulhudhuffushi Harbor Expansion Project (Financed by the Technical Assistance Special Fund)
Prepared by
PADECO CO., LTD. (PADECO), JAPAN
Tokyo, Japan
For Ministry of Finance and Treasury
Ministry of Housing and Infrastructure
Capacity Development for Sustainable Harbor Operation and Maintenance – Capacity Development and Harbor Operation
Volume I: Main Report
Technical Assistance Consultant’s Report
TA-9155 Capacity Development for Sustainable
Harbor Operation and Maintenance
Final Capacity Development Report
– Volume 1: Main Report
01 June 2018
i
ABBREVIATIONS AND ACRONYMS
ADB Asian Development Bank
AM Asset Management
ARI Asset Register Identification
CAPP Community Awareness and Participation Plan
CDTA Capacity Development Technical Assistance
CMMS Computerized Maintenance Management System
CNA Capacity Needs Assessment
CSC Civil Service Commission
FCFS First Come First Served
FY Financial Year
GoM Government of the Maldives
GRT Gross Registered Tonnage
HMO Harbor Management Office
IA Implementing Agency
INCOTERMS International Commercial Terms
KBC Kulhudhuffushi Business Center
KLC Kulhudhuffushi Local Council
KPL Kulhudhuffushi Port Limited
LGA Local Government Authority
MAM Maritime Academy of the Maldives
MHI Ministry of Housing and Infrastructure
MED Ministry of Economic Development
MFT Ministry of Finance and Treasury
MPL Maldives Ports Limited
MSMEs Micro, Small, and Medium-Sized Enterprises
MTA Maldives Transport Authority
MVR Maldivian Rufiyaa
MSDs Musculoskeletal Disorders
NGO Non-Governmental Organization
PPTA Project Preparatory Technical Assistance
PSIP Public Sector Investment Program
PWS Public Works Service
SME Small and Medium-Sized Enterprises
SMEMS Small and Medium-Sized Enterprises Mapping Survey
SPO Senior Project Officer
TA Technical Assistance
TOR Terms of Reference
UNDP United Nations Development Program
USD US Dollars
WDC Women Development Committees
WO Work Orders
WTO World Trade Organization
ii
SYMBOLS AND TECHNICAL ABBREVIATIONS � Meter � ; � Square Meter � Cubic Meter
~ Approximately � Day
Feet
h Hour
Hrs Hours ℎ� Hectares ℎ Horsepower � Kilogram � Liter � Degree Celsius � Meter �� Millimeter � Month
N Annual Number of Passengers (Dis)Embarking
Seconds �, Time or Period � Year
% Percentage
iii
LIST OF TABLES
Table 1: Details of the field data collection ............................................................................. 46
Table 2: SME Mapping Survey 1 ............................................................................................ 56
Table 3: SME Mapping Survey 2 ............................................................................................ 56
Table 4: Capacity Building Programs for this CDTA ............................................................. 63
Table 5: Activity Project Orientation and Livelihood ............................................................. 64
Table 6: Syllabus for the harbor safety refresher for boat drivers ........................................... 67
iv
LIST OF FIGURES
Figure 1: MHI Organizational Structure .................................................................................... 5
Figure 2: MHI’s Infrastructure Department Organizational Structure ...................................... 5
Figure 3: MTA’s Organizational Structure ................................................................................ 7
Figure 4: LGA’s Organizational Structure ................................................................................ 9
Figure 5: KLC’s Organizational Structure ............................................................................... 10
Figure 8: Kulhudhuffushi harbors ............................................................................................ 24
Figure 9: Kulhudhuffushi harbor expansion ............................................................................ 25
Figure 10: UNDP CNA Process .............................................................................................. 43
Figure 11: Process used in Capacity Needs Assessment (CNA) ............................................. 43
Figure 12: Activities followed through Mobilizing and Designing Stage ............................... 44
Figure 13: Schematic diagram showing the work methodology ............................................. 45
Figure 14: Capacity Levels ...................................................................................................... 48
Figure 15: Findings from the survey ........................................................................................ 52
Figure 16: Gender equality perception .................................................................................... 54
Figure 17: Perception on gender job/income opportunities ..................................................... 54
Figure 18: Employment and Harbor Use ................................................................................. 58
Figure 19: Types of resources or assistant needed by number of respondents ........................ 59
Figure 20: Process of CDTA capacity development and delivery ........................................... 62
v
TABLE OF CONTENTS
1. BACKGROUND AND INTRODUCTION ................................................................................. 1
1.1 Project and Report...................................................................................................................... 1
1.2 Kulhudhuffushi and Harbor Overview ...................................................................................... 2
2. INSTITUTIONAL SETTING AND ASSESSMENT ................................................................. 4
2.1 Institutional Setting and Organization ....................................................................................... 4
2.1.1 Ministry of Housing and Infrastructure (MHI) ............................................................. 4
2.1.2 Public Works Service (PWS) ........................................................................................ 6
2.1.3 Maldives Transport Authority (MTA) .......................................................................... 6
2.1.4 Local Government Authority (LGA) ............................................................................ 8
2.1.5 Kulhudhuffushi Local Council (KLC) .......................................................................... 9
2.2 Harbor Institutional Assessment .............................................................................................. 10
2.3 Recommendations and Guidelines for Institutional Structuring .............................................. 12
2.3.1 Guidelines on Harbor’s Institutional Set Up ............................................................... 14
2.3.2 Staffing of HMO ......................................................................................................... 15
3. ASSET MAINTENANCE AND FINANCIAL MANAGEMENT .......................................... 17
3.1 Asset Management and Maintenance Situational Assessment ................................................ 17
3.1.1 Maintenance ................................................................................................................ 17
3.1.2 Work Orders (WOs) .................................................................................................... 18
3.1.3 Asset Register Identification (ARI) ............................................................................ 18
3.2 Recommendations on Harbor Asset Management and Maintenance ...................................... 18
3.3 Financial Management Situational Assessment ....................................................................... 20
3.4 Recommendations on Harbor Financial Management ............................................................. 22
4. OPERATIONS AND PROCEDURAL MANAGEMENT ...................................................... 24
4.1 Overview of Kulhudhuffushi Local Harbor and Operations.................................................... 24
4.2 Guidelines for Harbor Operational Procedures ........................................................................ 26
4.2.1 Vessel entering and exiting the harbor ........................................................................ 26
4.2.2 Vessel double banking ................................................................................................ 27
4.2.3 Cargo loading and unloading ...................................................................................... 27
4.2.4 Dangerous goods handling .......................................................................................... 28
4.2.5 Cargo storage .............................................................................................................. 28
4.2.6 Passenger terminal operations..................................................................................... 28
4.2.7 Tickets and Ticketing .................................................................................................. 29
4.2.8 Passengers’ embarking and disembarking .................................................................. 29
4.2.9 Luggage handling ....................................................................................................... 29
4.2.10 Entry and use of vehicles inside the harbor ................................................................ 30
4.2.11 Garbage Disposal and environmental considerations ................................................. 30
vi
4.2.12 Paying for harbor usage and services .......................................................................... 31
4.2.13 Marketing and promotion ........................................................................................... 31
5. SAFETY ASSESSMENT AND MANAGEMENT ................................................................... 32
5.1 Harbor Safety Assessment ....................................................................................................... 32
5.2 Recommendations on Harbor Safety ....................................................................................... 34
5.3 Guidelines on Safe Berthing Policy ......................................................................................... 35
5.4 Guidelines on Safe Harbor Operations .................................................................................... 36
5.4.1 Workplace transport .................................................................................................... 36
5.4.2 Lifting operations ........................................................................................................ 37
5.4.3 Falls from height ......................................................................................................... 38
5.4.4 Dusty cargoes and hazardous materials ...................................................................... 38
5.4.5 Musculoskeletal disorders ........................................................................................... 39
5.4.6 Slips and trips.............................................................................................................. 40
5.4.7 Confined Spaces ......................................................................................................... 40
5.4.8 Guidelines for Implementation Plans .......................................................................... 41
6. INCOME AND LIVELIHOOD OPPORTUNITIES ............................................................... 42
6.1 Methodology Adopted for the Livelihood Capacity Needs Assessment ................................. 42
6.1.1 Mobilize and Design ................................................................................................... 44
6.2 Approach .................................................................................................................................. 44
6.2.1 The Sampling frame and sampling strategy ................................................................ 45
6.2.2 Data collection and analysis........................................................................................ 46
6.3 Undertaking CNA .................................................................................................................... 47
6.4 Systemic Level Capacities ....................................................................................................... 48
6.4.1 Current status .............................................................................................................. 49
6.5 Organizational Level Capacities .............................................................................................. 49
6.5.1 KLC ............................................................................................................................ 50
6.5.2 KPL ............................................................................................................................. 50
6.5.3 Fenaka cooperation ..................................................................................................... 50
6.5.4 Hospital ....................................................................................................................... 50
6.5.5 Schools ........................................................................................................................ 50
6.5.6 Women development committees (WDC) .................................................................. 51
6.6 Individual Level Capacities ..................................................................................................... 51
6.6.1 General assessment and survey’s findings .................................................................. 51
6.6.2 Gender issues .............................................................................................................. 53
7. SME AND BUSINESS OPPORTUNITIES .............................................................................. 55
7.1 The Commercial Environment of Kulhudhuffushi .................................................................. 55
7.2 Overview of SME Development .............................................................................................. 56
vii
7.3 Harbor Development and SME Survey ................................................................................... 57
7.4 SME Harbor Initiatives and Recommendation ........................................................................ 60
8. CAPACITY DEVELOPMENT PROGRAM AND DELIVERY............................................ 62
8.1 Community Awareness and Livelihood Opportunities ............................................................ 64
8.2 SME and Business Development ............................................................................................. 65
8.3 Asset Maintenance and Financial Management ....................................................................... 66
8.4 Safety Operations and Procedures ........................................................................................... 67
9. SUMMARY, CONCLUSIONS & RECOMMENDATIONS .................................................. 69
9.1 CDTA Rationale and Objectives ............................................................................................. 69
9.2 Components and Approach of Capacity development Program .............................................. 70
9.3 Impact of Capacity development Program............................................................................... 70
9.4 Recommendations and Way Forward ...................................................................................... 72
viii
LIST OF APPENDICES [See Volume II] Appendix 1: Extract of Kulhudhuffushi Cleaning and General Maintenance Contract
Appendix 2: Job Description of Security Official
Appendix 3: Questionnaires on Financial and Asset Management
• Appendix 3.1: Financial Management Questionnaire
• Appendix 3.2: Asset Maintenance Questionnaire
• Appendix 3.3: Procurement and Purchasing Questionnaire
Appendix 4: MPL Finance Procedure Manual Final
Appendix 5: Local Vessel Safety Regulation (English Translation)
Appendix 6: Procedures and Topics for Safety Meetings and Talks
Appendix 7: Sample Harbor Safety Schedule Plan
Appendix 8: Kulhudhuffushi Harbor Expansion Project Infographic
Appendix 9: Kulhudhuffushi Overview & Findings Presentation (Dhivehi)
Appendix 10: SME Workshop Presentations- International Trade
• Appendix 10.1: Case Studies
• Appendix 10.2: Business Workshop in International Trade for
Kulhudhuffushi Harbor Project Presentation
• Appendix 10.3: Marketing – Overview of Concepts Presentation
• Appendix 10.4: Business Workshop Overview Presentation
• Appendix 10.5: Principles of Logistics Presentation
• Appendix 10.6: Import/Export Procedures Presentation
Appendix 11: Business Forum Customs’ Presentation (Dhivehi)
Appendix 12: Asset Management Additional Information
• Appendix 12.1: Asset Management Awareness
• Appendix 12.2: Asset Register
• Appendix 12.3: Asset Code Center and Cost Codes
• Appendix 12.4: Work Orders
• Appendix 12.5: Inspections
• Appendix 12.6: Procedures for Inspections
• Appendix 12.7: Procedure with Respect to Accidents
• Appendix 12.8: Sample of Competency/Skills Matrix
• Appendix 12.9: Samples of Safety Awareness
Appendix 13: Financial Management and Internal Control Guide & Forms
Appendix 14: Harbor Safety Refresher Training Materials (Dhivehi)
Appendix 15: Course Conduction Form – Maritime Academy of Maldives
Appendix 16: Harbor Safety Public Awareness Notice (Dhivehi)
Appendix 17: Selection of Photos Taken During the CDTA
1
1. BACKGROUND AND INTRODUCTION
1.1 Project and Report
1. The Government of the Maldives (GoM) has received a grant from the Asian
Development Bank (ADB) to construct a new passenger and cargo harbor as an
expansion of the existing multi-purpose local harbor in Kulhudhuffushi. The
construction is expected to start in late 2018 with and complete end of 2019.
2. The feasibility study for the expansion of the Kulhudhuffushi harbor was carried
out through an ADB-funded PPTA which was completed in early 2016. The
PPTA study recommended that a Capacity Development Technical Assistance
(CDTA) should be carried out prior to completing harbor’s expansion in order
to prepare and enhance the capacity of public agencies in Kulhudhuffushi and
the Maldives in charge of harbor operations and management.
3. This CDTA project is funded under TA-9155 MLD (Capacity Development for
Sustainable Harbor Operation and Maintenance) and financed by ADB. The
Ministry of Housing and Infrastructure (MHI) is the Implementing Agency (IA),
and the Ministry of Finance and Treasury (MFT) is the Executing Agency (EA).
Along the IA, the Kulhudhuffushi Local Council (KLC) has been closely
involved in this project along other key public agencies, notably the Ministry of
Economic Development (MED), the Maldives Transport Authority (MTA) and
the Kulhudhuffushi Business Center (KBC). ADB has overseen and monitored
the implementation of this CDTA.
4. The objective of this CDTA is to strengthen the institutional capacity of the
relevant agencies in Kulhudhuffushi in harbor operation, maintenance, safety,
user charging, and financial management. The TA has 4 components: (i)
Component 1: Capacity Development Training, (ii) Component 2: Harbor
Safety, (iii) Component 3: Harbor User Charges, and (iv) Component 4: Income-
Generating Livelihood Opportunities.
5. This Report is the Final Capacity Development Report on Components 1, 2 and
4 of this CDTA. Work on Component 3 (Harbor User Charges) is included in a
separate report: ‘Feasibility study and socio-economic impact assessment of
implementing harbor user charges’.
6. Prior to this Final Report, Interim and Draft Capacity Building Reports were
submitted in December 2017 and February 2018, respectively. For both reports,
comments have been received and properly addressed. This Final Capacity
Building Report is a revised version of the Draft Report. It covers all activities
undertaken in this project for Components 1, 2, and 3; since start of the project
(08 August 2017) to-date (30 May 2018).
2
7. For clarity, there have been some changes from the TOR for work on
components 1, 3, and 4 which are subject of this Capacity Building Report. The
changes are rather extensions of work as outlined and agreed at Inception Stage.
The main additions are summarized below:
- Institutionalization of asset, operations and safety management modules –
While the TOR included only the task of developing the toolkits, the CDTA
Team has proposed to case-show the beneficiaries (KCL, MHI, PWS) how
those toolkits can be used and implemented in practice.
- Implementation and institutionalization of a harbor safety awareness
program, rather than just development of a safety plan.
- Formulation of an institutional, operational, and organizational set-up for a
Harbor Management Office (HMO) to be incorporated within KLC. The
proposed HMO structure can be extended to other harbors in the Maldives.
- Coaching and monitoring 3 selected KCL personnel on basic work relevant
to harbor safety, asset maintenance, and financial management. The objective
is to ensure that existing KCL staff can undertake minimum checks for safety
and asset maintenance prior to the creation and set-up of an HMO.
- With the exception of the training on harbor safety for boat drivers, which has
been developed by the CDTA team but delivered by a local maritime training
institution, all training modules have been developed and implemented by the
CDTA team. Initially, those would have been developed by the team and
implemented by local training providers.
- As per the request of MHI and KLC, there was provision of additional training
modules and sessions in both Kulhudhuffushi and Malé; on asset management
and maintenance, income-generating livelihood opportunities, and business
development for SMEs.
- Development and delivery of a one-day forum on logistics management, trade
and distribution in Kulhudhuffushi, in association with KBC.
- All the above was discussed with and approved by MHI, KCL and ADB at
Inception Stage.
1.2 Kulhudhuffushi and Harbor Overview
8. The Maldives is a country of South Asia situated in the Indian Ocean South-
Southwest of India, comprising 1,192 coral islands grouped in a double chain of
26 atolls along a North-South axis. With a total land area of approximately 298
square kilometers (m2) contained within a region of approximately 90,000 m2,
the Maldives is one of the most dispersed countries in the world.
3
9. The population of the Maldives is distributed among the capital, Malé, and 189
other islands, these ranging north-south over an 800-km length of ocean. The
other islands are connected to Malé, which lies near the center, and to each other
by sea. The country is entirely dependent on maritime transport. Nearly all
islands have a harbor that consists of a basin dredged from the fringing reef, a
seaside breakwater for harbor shelter, and a landside quay wall for berthing.
10. There are 3 atolls that form the Northern region: Haa Alifu, Haa Dhaalu, and
Shavian. Kulhudhuffushi is the capital island of Thiladunmathi South (Haa
Dhaalu) atoll located at geographic coordinates of N6° 37' 24" and E73° 04' 10".
The atoll is the northern most atoll of the Maldives with 34 islands of which 16
islands are inhabited. Kulhudhuffushi has a land area of approximately 235
hectares, with 35 hectares of land from reclamation.
11. Kulhudhuffushi is the business hub of the North due to its superior infrastructure
and services compared to the other islands in the region. It is also a major
population center in the north with over 8000 registered inhabitants and frequent
visitors from neighboring islands. Kulhudhuffushi is well connected to Malé
through scheduled boat trips as well as its proximity to Hanimadhoo airport
which operates several daily flights to-from Malé and weekly flights to-from
Trivandrum in India. There are private launch operators who provide services
from Hanimadhoo to Kulhudhuffushi and other islands.
12. Kulhudhuffushi is a major population center in the North of the country and is
being developed as an urban center under the GoM’s development plans. It contains important infrastructure for the northern region, including a secondary
school, a university campus, a hospital, and a future airport currently under
construction. It also contains a local harbor (subject to this CDTA) and a regional
harbor, the latter is designed to cater for overseas vessels and allow the direct
importing of cargo rather than through the main hub of Malé.
13. The expansion of the local harbor arises from a desire to accommodate future
demand, increase connectivity for passenger and cargo among islands, improve
the accessibility of services such as housing, education and health, and
contribute to the development of small and medium enterprises (SMEs) in the
region.
4
2. INSTITUTIONAL SETTING AND ASSESSMENT
14. This Chapter provides an institutional capacity assessment focused on the key
agencies and organizations whose efforts will define the future and the success
of the Kulhudhuffushi harbor expansion. An analysis of key agencies with a role
in harbor operations, maintanance and financial management is conducted to
assess capacity building and institutional strengthening needs to overcome
observed gaps, overlaps and inconsistencies.
2.1 Institutional Setting and Organization
15. In the Maldives, the public agencies in charge of harbor operations and
management are MHI, MTA, the Public Work Service (PWS), the Local
Government Authority (LGA), and the Local Councils.
2.1.1 Ministry of Housing and Infrastructure (MHI)
16. The mandate of MHI includes the following tasks relevant to this CDTA:
- Planning, monitoring and implementing harbor infrastructure and maintenance,
- Formulating the standards, developing and implementing the regulations for
harbor’s construction, revetment, coastal protection, dredging and reclamation,
- Maintaining a record of Government buildings and infrastructure assets,
including for ports and harbors.
17. MHI currently employs 895 employees. New public infrastructure in the
Maldives is planned and funded through the Public-Sector Investment Program
(PSIP). MHI under its legal mandate was due to implement 28.4% of PSIP
projects in 2017.
18. MHI manages and advises on all technical aspects of harbor maintenance and
repair. Currently, the process of harbor maintenance starts with local councils
reporting the needs for maintenance or repair based on visual observation
including those from harbor users and the general public. MHI’s Engineering Division will then send a technical team for assessment and submit a report to
the head of the Infrastructure department.
19. Where relevant, MHI will assess how critical and urgent the required
maintenance is and prepare a priority list which will be forwarded to the MFT
along with estimates of expenditure for budgetary allocation under the annual
budget. The MFT then assesses and reviews the estimates, makes revisions and
then tables the budgets in Parliament for approval.
5
20. Often, the amounts approved is significantly lower after review from the MFT
and parliament. Once the budget is approved by the parliament, MHI will
schedule the works based on urgency and send work order to the PWS for
implementation.
Figure 1: MHI Organizational Structure
Source: MHI
Figure 2: MHI’s Infrastructure Department Organizational Structure
Source: MHI
Ministry of Housing and Infrastructure
Corporate Management Department
Infrastructure Department
Construction Industry
Development Department
Planning and Urban
Development Department
A'aamu Khidhumaiy
Thakaa Behey Bai
Land and Building
Department
Land, Building & Municipal Services
Department
Public Works Services
Maldives Land and Survey Authority
Infrastructure Department
Engineering Division
Civil Design and Consultancy Section
Coastal Engineering
Unit
Road Infrastructure
Unit
Utilities Engineering
Unit
Building Design and Consultancy Section
Public Estate Managemen
t Unit
Structural Engineering
Unit
Building Services Engineerng Unit
Design Services Unit
Project Implementation Division
Project Management
Section
Support Service Unit
Building Contracts Unit
Civil Contract Unit
Project Planning and Appraisal Section
Project Planning and Development Unit
Appraisal and Valuation Unit
Environmental Monitoring Unit
6
2.1.2 Public Works Service (PWS)
21. The PWS operates as a department of MHI and its mandate includes several
tasks relevant to this CDTA:
- Maintaining and repairing Islands’ harbors, jetties and break water
- Constructing L-Blocks, Tetra Pods, and revetment blocks required for
Government projects
- Undertaking road projects and repairs.
- Providing emergency assistance as required during time of disaster.
- Providing mechanical services and other related services including on special
events organized by the government.
22. To carry out its works, PWS employs 165 employees; 124 Civil Service and 41
contract staff; as reported in January 2018. PWS owns adequate machinery,
equipment, vehicles and vessels, and it also owns and operates a workshop for
mechanical works and maintenance of assets.
23. From the discussions and interviews undertaken by the CDTA team with PWS
staff, PWS seems to have a team of technically competent and experienced staff
to perform key functions, including on harbor maintenance and repair. Staff
skills generally match requirements and PWS has the capacity to do works for
its annual allocated budget.
24. However, due to budget constraints, PWS resources seem to be underutilized
and council’s requests for harbor maintenance are not met leading to backlog of
harbor dredging and maintenance work spanning several years. Budgetary
constraints also impact PWS asset management and maintenance with routine
scheduled maintenance of assets not usually performed on-time.
2.1.3 Maldives Transport Authority (MTA)
25. MTA is an autonomous body under the Government’s appointed Ministry. Currently the MED in charge of regulating all aspects of land and maritime
transport.
26. Currently, the MTA employs 53 civil service employees, including a CEO and
several senior management staff. From the CDTA’s team interaction with MTA’s staff during this project, it appears that both the MTA’s CEO and senior management are well-trained and qualified, have expert knowledge and
understanding of their tasks, and are fully qualified and experienced to carry out
their responsibilities. Nevertheless, the professional staffing of MTA is
extraordinarily thin compared to the important tasks delegated to the
organization. Several key management positions remain vacant which hinders
the MTA’s ability to carry out its mandate.
7
27. Decentralization of maritime transport and harbor administration has reduced
the work load in the MTA’s head office in Malé and eliminated the need for
island communities and boat owners to travel to the Capital for most
administrative matters. Decentralization has also enabled the MTA to delegate
several functions to atoll and island councils, including:
- Domestic vessel inspection for conformity to safety regulations and issuance
of safety certificate
- Issuance of domestic vessels’ identification number.
- Cancellation of vessel registry
- Collection of annual fees from vessels; although this has not been enacted in
most island councils.
28. To-date, the MTA has published several regulations pertinent to maritime
transport and harbor management, including:
- Regulation on boat building in Maldives (2017/R-2)
- Regulation on collection of light dues from international vessels (2017/R-3)
- Regulation on public ferry services in Maldives (2-69/78)
- Regulation on the registration of local vessels (2016/R-6)
- Regulation on the safety of vessels travelling in territorial seas (Appendix 1)
- Regulation on off port limit and off shore shipping services (2013/R-33)
Figure 3: MTA’s Organizational Structure
Source: CDTA Team
Chief Executive Officer
Port Master
Harbour master Marine Officer Security
Pilot Marine Officer Environment
Pilot Marine Officer Hydrography
Marine Officer
Dangerous Goods
Marine Officer
Shipwrek
Principle Surveyor
Chief Examiner
Senior Quantity Surveyor Nautiical
Examiner Senior Surveyor Engineering
Small Vessels Inspector
Small Vessels Inspector
(Surveyor)
Training Officer
Licencing Officer
(Admin officer)
Certification Officer Foreign
Going
Certification Officer Local
(Asst. Secretary)
Registrar of Ships & crew
(Deputy Director)
Seamen Registration
Port State Control
Officer
New Building Reg.
(Secretary)
Vessel Registration
Officer
(Secretary)
Accident Investigation
(Asst. Secretary
Data Processign Off.
Assistant Registrar
(Secretary)
Vessel Mortgage Off.
(Asst. Secretary)
Quality Auditing Officer
8
2.1.4 Local Government Authority (LGA)
29. In the Maldives, local government is provided for in Chapter VIII of constitution
which states the objectives of Councils to provide democratic and accountable
governance; foster the social and economic well-being and development of the
community; and establish safe, healthy and ecologically diverse environment.
The main legislation regulating local government is the Decentralization Act
2010.
30. The local government system in the Maldives comprises island councils, atoll
council and City Councils. Twenty atoll councils (132 atoll council seats), two
city councils (seventeen city council seats) and 188 island councils (942 island
council seats) were created under the Act of 2010.
31. The Local Government Authority (LGA), constituted in accordance with the
2010 Act, has responsibility for local government and is tasked for monitoring
the activities of councils; coordinating and standardizing their work at the
national level; and identifying and implementing institutional and capacity needs
to improve their operational and management capacity.
32. The composition of LGA is a Cabinet Minister appointed by the President, an
appointed member from the Male’ City Council, four members from the Atoll Councils and two additional members appointed by the Parliament representing
the Civil Society and the general public.
33. A recent amendment to Decentralization Act 2010 (7/2010), passed on the 19th
of April 2017, changed the composition of LGA board to 5 members: a cabinet
minister appointed by the President, a female member with experience in gender
equality, a member representing civil society, a member with experience in
public administration and the CEO of LGA. This change removed representation
of councils in the LGA board.
34. Currently, LGA employs 42 employees but it has a shortage of professional staff
with the necessary educational background to perform key LGA functions. Staff
number and skills do not match the requirements and scope of work.
35. Discussions with LGA revealed that due to mostly to fiscal and budgetary
constraints, the organization it is currently unable to procure the required human
and non-human resources in order to fulfil its mandate. This creates a gap in the
supervisory, monitoring, and guidance role entrusted to LGA vis-à-vis local
councils, as have been evidenced during this project with regards
Kulhudhuffushi local harbor’s financial and asset management.
9
Figure 4: LGA’s Organizational Structure
Source: CDTA Team
2.1.5 Kulhudhuffushi Local Council (KLC)
36. In the Maldives, island councils are the custodians of all fixed assets in their
respective islands, and have several responsibilities including the building and
maintenance of wharves, the management and operation of island harbors, the
alleviation of land erosion problems, the maintenance of jetties, breakwaters,
and other harbor assets.
37. KLC currently has 25 employees and 7 counsellors. The Council has a shortage
of staff at all levels while 30% of payroll expenses go for the elected councilors’ salaries. Currently, KLC has no dedicated or trained staff in harbor management
and operations except for casual labor used for daily cleaning and maintenance.
38. Although KLC is required to provide municipal services, manage and maintain
its local harbor, the lack of skills and resources does not allow it to properly
perform its harbor functions. Basic functions, such as cleaning and general
Local Government Authority
CEO Secreteriat
Corporate Service DG
Accounting / Finance Director
Admin/HR Asst.
Director
S.HR Officer
IT Officer
Media Officer
S.Admin Officer
Admin Officer
Admin Officer
Customer Service Officer
Procurement Officer
Office Asst.
Masakathu
Finance Asst. Director
S.Finance Officer
Finance Officer
HR Director
Trainer
Trainer
Trainer
Director Legal
Legal Officer
Asst. Legal Officer
Planning and Monitoring
Planning / Projects Director
S.Planning Officer
Research Officer
Statistical Officer
Admin Officer
Senior Projects Officer
Project Officer
Asst. Project Officer
Monitoring / Evaluation
Director
Governance Auditor
Financial Auditor
Accounts Officer
Admin Officer
President
Vice President
10
maintenance, are contracted to 3rd parties, but this work is neither satisfactory
executed by the contractor nor properly monitored by the KLC.
Figure 5: KLC’s Organizational Structure
Source: CDTA Team
2.2 Harbor Institutional Assessment
39. Under the Maldives Decentralization Act 2010, it is the responsibility of local
councils to manage their respective local harbors. Thus, for Kulhudhuffushi, the
local harbor is a state-owned asset and KLC is the caretaker of the asset.
40. Institutionally and as shown in Figure 5 above, there is no provision for a
specialized division or unit in charge of harbor operations and management in
KLC. Only one of the council members is assigned as the person in charge of
this public asset. Aside from this council member, KLC does not have any
human resources to be used to properly manage, operate and maintain the
Kulhudhuffushi local harbor.
41. The various meetings, interviews and discussions with KLC and its employees
have all indicated that the local council does not have the capacity in terms of
resources i.e., both people and funding. Educational and skill levels are low and
there is an urgent need to raise staff’s awareness and skills by training and
additional funding. At the same time, council financial resources are very limited
and almost exclusively rely on government budget. This is further discussed in
Council President
Corporate Affairs
Financial Officer
Accounting Officer
Admin Officer x 4
Support Services x 2
Driver
Economic Development and Social Services
Economic Development Officer x 2
Planning Officer x 2
Project Officer x 2
Community Health Worker
Family Health Worker
Municipal Services
Municipal Officer x 2
Project Officer x 2
Imam
Support Services
Burial Services
Director/ Secretary General
Council Vice President
11
Chapter 3 on harbor financial and asset management as well as in the separate
Feasibility Report on Harbor User Charges.
42. Through reviewing the job descriptions and the discussions with persons
responsible for financial and operations services within the Council- senior
project’s officer and assistant accountants, it was concluded that the officer responsible for harbor operations and maintenance had little experience and the
job description for this role is limited to the followings:
- Preparation of land registration certificate for state owned allocation for living
- Demarcation of land allocated for living
- Demarking plots based on sentences from the court
- Managing and supervising of other staff
- Preparing land registry for allocated to Stat’s use.
43. Clearly the job description of the position of Senior Project Officer (SPO) does
not cover any duties for harbor operations and management, let alone harbor
safety. However, the position manages two tasks relevant to the local harbor:
- Two harbor cleaning contracts; one for cleaning the harbor basin and harbor
area, and the other for cleaning and upkeep of public areas within the harbor
area. As shown in Appendix 1, the scope of works for both cleaning contracts
is well defined in the contracts with KLC, identifying the level of cleaning
required, the areas and a program established for routine and regular cleaning.
- Furthermore, the control of discarding the waste is indicated, with the waste
disposed of at the Island waste management center. This is in line with the
requirements of the Maldives Decentralization Act of 2010.
- The position is responsible for the controls of a Budget of USD 1,000/year
for minor harbor repairs and maintenance.
44. Further institutional gaps were observed by the CDTA team when analyzing the
institutional and organizational setting of KLC with regards its harbor mandate
and the required tasks to be carried out for harbor operations and management.
45. KLC does not have documented and standardized rules and procedures for
harbor’s operations and management. As such, the harbor is operated with minimum or no supervision from the Council.
46. For harbor operations and maintenance, there are no routine inspections or
checks of the harbor infrastructure being carried out by KLC. The local council
responds to maintenance issues only when reported by the harbor users.
Furthermore, there is no quality section established in MHI or KLC for
establishing, controlling and auditing of procedures and processes for
maintenance, operations and safety.
12
47. For harbor safety, the council does have a brief circular on harbor safety and
environmental management, while MTA has published a regulation on the safety
of boats and vessels calling local harbors. However, no routine or regular harbor
and/or vessel safety inspection is being carried out by KLC; and as outlined
above KLC does not have any qualified harbor safety personnel to carry out this
task.
48. The above is further exacerbated by the fact that no harbor accidents have been
directly reported to KLC and KLC does not hold any safety log of the number
and type of boat incidents and accidents in the harbor. Indeed, no record at
KLC’s exists of the 25 accidents that have been reported to the police since the
harbor has been opened.
49. For harbor financial management, the job descriptions of KLC’s two assistant accountants generally matched and reflected their functional roles. The Assistant
Accountants are involved in payment of invoices, payroll, maintaining
budgetary controls and recording available balances, manage and record budget
items balance according to budgetary codes.
50. The local maintenance budget for harbor cleaning and general maintenance is
well below the required needs, and there is no line in the budget assigned to
harbor management. Most lines are for recurrent administrative expenses and
minor capital investments, with salaries making up 80% of KLC’s budget.
51. There is no revenue or income generated from harbor activities by the council.
Across the Maldives, with the exception of Malé North-Harbor, no vessel or
passenger user charges are being collected in local harbors. The only funding for
local councils to manage, operate and maintain their respective harbors comes
from central government.
52. Where applicable, PSIP projects relevant to harbor development maintenance
are implemented by the relevant implementing agencies most notable MHI and
PWS. However, only small-scale infrastructure projects such as road lighting
and cemetery boundary wall are carried out by Councils. KLC expressed their
concerns about the lack of communications with, and response to their letters
from, MHI and PWS. KLC staff expressed that such lack of communication
made them feel isolated and became less effective in dealing with harbor
maintenance and management issues.
2.3 Recommendations and Guidelines for Institutional Structuring
53. Under the current set up, the resources and management capability of the KLC
are very limited. In order to manage and maintain the harbor sustainably and
13
safely, KLC must have the required manpower and financial resources and an
appropriate institutional structure and operating systems.
54. Two options may be considered for an appropriate institutional set up for
Kulhudhuffushi local harbor.
- Either create a Harbor’s Management Office (HMO) as part of KLC’s
organizational structure, or
- KLC, while remaining the custodian of the harbor, handovers harbor’s management and operations to a 3rd party on a contract management basis.
An obvious solution is to handover harbor management duties to the nearby
Kulhudhuffushi Port Limited (KPL), in a similar setup to that of Malé North
Harbor where the Maldives Port Limited (MPL) has been contracted out to
manage the harbor.
Figure 6: MPL Malé North Harbor’s Organizational Structure
55. KPL is a unit of MPL, a state enterprise, in charge of harbor operations and
management of international and regional harbors in the Maldives. MPL
manages the main harbors in Malé while KLP manages the Kulhudhuffushi
Regional Harbor which is adjacent to the planned expansion of Kulhudhuffushi
local harbor.
56. As with MPL, KPL is a professional port manager and operator with suitable
resources and well-trained and qualified staff to properly manage both local and
international harbors.
14
Figure 7: KPL Kulhudhuffushi Regional Harbor’s Organizational Structure
Source: CDTA Team
57. In either case, a Harbor’s Management Office (HMO) shall be established, the
management capability of KLC needs to be increased, and a continuous
awareness programs on harbor’s management and operations amongst users
(traders, boat owners, passengers, etc.) should be developed and delivered.
2.3.1 Guidelines on Harbor’s Institutional Set Up
58. Whether under KLC or a 3rd party, the HMO will have the responsibility of
managing the harbor through a standard operations procedure manual to be
followed by both the harbor’s management and the users. The parts from the manual that are relevant to the users shall be published and available to users.
59. Furthermore, in order to provide a safe working environment and to protect
harbor users and harbor’s staff from any loss or damage, it is necessary to have
safe working practices, rules and regulations. There should be a clear mechanism
to monitor and enforce these rules and regulations.
60. Where the harbor is operated commercially, the HMO shall establish
administrative arrangements to collect tariffs and dues and to create other
revenue generating activities. Harbor tariffs should be published and known to
users, while collected and managed by qualified staff.
61. Guidelines on operational rules and procedures that should be implemented and
monitored by the HMO are provided in Chapter 4 of this Report.
General Manager X 1
Marine Service
Pilot x 1
Asst. Marine
Service x 1
Tugboat Driver x 1
Tugboat Crews x 3
Administration
Asst. Admin Officers x3
Attendants x 3
Finance
Asst. Finance
Officers x 3
Asst. P. Relation
Officer x 1
Cargo Clearance
Asst. Clearance
Officers x 3
Cargo Operation
Asst. Managers x
2
Asst. Supervisor
Ship x 1
Vehicle Drivers x 3
Asst. Tally Officers x 2
Labouers x 6
Asst. Supervisor Termnal x 1
Winchman x 2
Port Security
Asst. Security
Officer x 1
Security Guards x 11
Technical
Asst. Technical Officer x 1
Technicians x 4
15
2.3.2 Staffing of HMO
62. In order to properly manage the harbor, staffing is required in the following areas
within an HMO’s structure. Training and awareness programs are important for
each of these roles as well.
- Harbor Manager is responsible for the overall operations and management
of the harbor and is tasked to pool various resources together to ensure a
safe and smooth running of the harbor. He organizes and monitors the work
of harbor officers, staff and labor; and liaise with other relevant agencies in
charge of harbor development, operations, management and maintenance.
- Administrative Officer who is responsible to the daily administrative tasks,
such as maintaining operational records, staff attendance and other staff
related records, cash collection and management. Weekly and monthly
reports on the operations, maintenance and financial management shall be
prepared by the Administrative Officer.
- Operations Officer who is going to assist in the field to properly implement
operational and maintenance procedures of the harbor. S/he will foresee the
activities prior to and during berthing and un-berthing operation of each
vessel. Daily tasks will include taking and maintaining the operational logs
needed to prepare the operational reports. At the end of the day he has to
handover the operational data and logs to the Administrative Officer so that
the records can be maintained, and actions be taken where applicable. He
will report to the Harbor Manager on operational matters.
- Safety and Security Officer is in charge of implementing and monitoring
safety procedures and practices in the harbor. His responsibilities start from
the time that a vessel reports her time of arrival till the time she departs after
having used the harbor. These include but are not limited to safe berthing
and un-berthing, the control of the security gates/fences, issuing vessels and
vehicles arrivals and departures documents, checking loading and
discharging (embarking and disembarking) operations of vessels
(passengers) with regards to safety and security, and the overall monitoring
of safe operation of the cargo handling and movement of the passengers.
- Financial and Asset Management Officer who should be in charge of
financial asset management as well as financial accounting for the costs and
revenues of the harbor including the collection of the proposed user-tariff
charges (See also Feasibility Report on Harbor User Charges).
- Labor Pool, whose main role is the daily cleaning and routine maintenance
of the harbor’s assets, collection of garbage and waste material inside the
harbor premises, and any other routine cleaning and maintenance tasks.
Where such functions are contracted out to a 3rd party, the management of
the labor pool should report to the Harbor Manger.
16
63. Subject to appropriate training and capacity building, some of the above
positions and functions can be implemented by existing staff within KLC. This
particularly the case for the Administrative Officer and the Financial and Asset
Management Officer. Job descriptions of the main roles above should be
detailed and approved by both KLC and the agencies in charge of harbor
operations and maintenance, e.g. MTA and MHI. As a guide, jobs description
for the Harbor Safety and Security Officer is shown in Appendix 2.
64. Depending on the applicability, structure and level of harbor tariffs, the revenue
from harbor user charges may not be sufficient to cover the salaries of additional
staff. In this case, a budget should be allocated from the Government’s budget
for payment of salaries.
65. Should KLC and MHI fail to recruit and/or train suitable staff by the start of
operations of the expanded Kulhudhuffushi harbor (currently scheduled for late
2019 / early 2020), the obvious solution will be to contract out the management
of the local harbor to KPL for a limited period (around 2 to 3 years) until such
time the institutional structure of the KLC’s HMO is established and the required human and financial resources are made available to KLC.
17
3. ASSET MAINTENANCE AND FINANCIAL MANAGEMENT
66. This Chapter provides an assessment of Kulhudhuffushi’s local harbor asset, maintenance and financial systems currently in place. An analysis of financial
management and asset maintenance has been conducted, both through
questionnaires, see Appendix 3 (3.1, 3.2, 3.3), and physical observations. The
purpose of both exercises is to assess the suitability of the systems in place and
recommend both short-term and long-term actions including a program of
capacity development and building.
3.1 Asset Management and Maintenance Situational Assessment 67. This section provides and overview of maintenance systems in place,
Computerized Maintenance Management System (CMMS), procedures, how
maintenance and inspection works are programmed and recorded, Work Orders
(WO’s) and Asset Register Identification (ARI).
3.1.1 Maintenance
68. There is no CMMS in place to control WO, program of work and record of works
when completed. There is however a cleaning program:
- For cleaning & upkeep of Harbor public areas which is conducted 7 days/week.
- For Harbor Basin and Harbor Area the program covers clearing of floating
debris from Harbor basin, Cleaning vessel docking area, Cleaning Fish Market
area and keeping dustbins at the Jetty Area according to the contract agreed.
69. The cleaning contracts (See Appendix 1) are primarily for housekeeping and
tidiness. Within the contract scope with KLC, there is a rolling program for the
Cleaning Contractors to follow which looks well suited.
70. Should there be an obvious and large problem within the harbor, KLC will be
usually informed by the harbor users, it will then check and send a report and
pictures to MHI Engineering advising them of the problem. MHI Engineering
along with a technical representative of PWS will jointly inspect and assess the
problem reported and determine its criticality, remedy of repair, and cost of the
works needed. Such large-scale works are generally budgeted for, via the central
Government under an annual General Maintenance Budget works which is
programed according to local needs.
71. KLC does not conduct a program of periodic inspections of the harbor.
According to PWS, a routine weekly and monthly inspection checklist was
established in 2010 for Local Councils with inspection reports to be sent on a
weekly basis to MHI. However, this is not taking place.
18
72. Whilst PWS have a presence in Kulhudhuffushi island, it does not get involved
in regular harbor inspections or minor maintenance repairs. On the other hand,
PWS is directly involved in the work and maintenance of the hospital and other
public buildings in Kulhudhuffushi and neighboring islands.
73. The CDTA team has reviewed the UNDP Report ‘Developing Guideline and Database for the Life-Cycle Management System of Vessel Safe Shelters in the
Maldives: Final Operation Maintenance Manual’. The maintenance section of this Manual is still relevant which highlights the need of routine inspections.
3.1.2 Work Orders (WOs)
74. No WOs are raised by KLC or Local Councils for minor maintenance repairs
and that of the Cleaning contractor activities engaged by KLC. Whilst the budget
for such works is relatively low, a formal WO system should still be employed
for general traceability of works performed and completed along the recording
of associating costs.
75. WOs should also be used when PWS are engaged in large maintenance works
which KLC or other Local Councils would not normally handle. These works
are dealt with by MHI. MHI should raise and issue the WO’s on PWS.
76. With the use of WOs, this will build up a history of maintenance and inspection
work activities and will have cost incurred associated to the WOs. WOs will
have the Asset No., Cost Centre No., and the Cost Code associated to them for
accounting and costings purposes.
3.1.3 Asset Register Identification (ARI)
77. Throughout this CDTA, it was highlighted that there was no Asset Registration
Identification (ARI), coding or numbering system for the harbor assets in KLC.
This is essential, as attributes to which information can be linked maintenance
conducted and in particular for financial awareness of expenditure. ARI is
usually established by the engineering (or maintenance) department and as such
should be established by MHI Engineering.
3.2 Recommendations on Harbor Asset Management and Maintenance 78. Institutionally, the following recommendations are made in view of the
situational assessment shown above:
- As indicated in Chapter 2, the role of Senior Project Officer should be
reviewed so it is aligned with the activities of harbor maintenance.
19
- It is clear the skills and people capacity level for maintenance is low in KLC.
Consideration should be given for recruiting a person who has the and
requisite qualification, knowledge and experience in infrastructure
maintenance, and who can be dedicated and focused on harbor inspections,
maintenance, control, supervision and monitoring of the cleaning contractor,
as well as some elements of harbor safety.
- Establish a position for Asset Management Officer within MHI who would
set out the Local Councils processes and procedures.
79. Procedurally, the following actions are recommended:
- KLC should perform monthly harbor inspections using a check list so as to
preserve the integrity of the harbor’s infrastructure and achieve the service life cycle of the harbor in its entirety. By not conducting formal routine
inspections and/or not performing corrective actions on time, the condition
and state of the harbor will deteriorate over time. One cannot depend on
harbor users or the general for reporting maintenance issues and problems.
- An KLC representative should make daily visits to the harbor to observe the
general integrity of the harbor noting any defects or damages found; and
observe that the cleaning contractor is performing his duties to the service
level required with in the contract requirements and any safety issued that
maybe observed.
- An ARI system needs to be in place for systematic recording of all assets the
KLC owns in the harbor and or for which it has responsibility. ARI numbers
should be used to attribute and link information to such recording. In a similar
way, an WO system must be established to capture all attributes associated
with corrective maintenance and inspections.
- Develop and implement an accident and incident reporting system. Clearly
defined procedures and processes should be established for general functions
and inter-department alignments. In particular, KLC should provide MHI
Engineering with a copy of the monthly harbor visual inspection report;
following which MHI and KLC should conduct a budget monthly review.
- If there is a process in place at the Island waste management center. The
Cleaning contactor disposing of the waste at the Island waste management
center should receive a receipt that waste / materials have been disposed of
by the Contractor and submitted such receipts to KLC at the end of the month.
- Improve the lines of communications between MHI and KLC via proper
reporting protocol. This should take the form of a daily status report from the
KLC to MHI showing the last 24-hrs harbor operational activity, covering
such activities as:
• Last 24 hours vessels numbers arriving and leaving
20
• Revenues and expenditures
• Condition of the harbor from the daily walk round observation check
• Progress of any minor maintenance repairs
• Any accidents or incident that occurred in the harbor in the last 24-hrs
• Any high cost maintenance works that has been identified
• Staff absenteeism and issues
80. In terms of training and capacity building, the following actions have been
recommended and implemented as part of this CDTA:
- Developed and delivered a training on the process and practices of
establishing ARI and WO procedures.
- Developed and conducted a training and awareness with respect to
inspections and maintenance activities for KLC and PWS.
- A two half-days harbor inspection program was performed by relevant KLC
staff under the guidance and supervision of the CDTA team. The aim is to
record and notify any defects or damages found, assess the work of the
cleaning contractor, and highlight any safety issued that maybe observed.
This could be performed regularly by KLC and its staff.
- Developed and implemented public safety awareness sessions for harbor
users; boat owners, truck drivers, passengers, etc. A safety and environmental
awareness program has been developed and delivered as part of this CDTA.
81. In the long-term, create a senior position for asset management, including safety,
and implement ISO 9000 and ISO 14001. In case KLC is not able to fulfil the
requirements of conducting routine inspections, consideration should be given
to outsourcing such tasks to PWS, KPL, or an independent contractor.
Consideration should also be given to obtaining low-level CMMS that will
interface with Finance SAP system for better alignment of information.
3.3 Financial Management Situational Assessment 82. As per the Decentralization Act, councils are entitled to a budgetary allocation
from central government. This budgetary allocation should enable the council
to provide services and responsibilities assigned to the council under the act.
Based on the revenue and expenditure of the council and with approval from
the atoll council, the island council shall submit budgetary allocation request
to MFT which, upon review, tables the budgets in Parliament for approval.
83. Article 78 of the Decentralization Act allows Councils to charge fees for a
number of services including for vehicle and vessel registration and licensing,
trading licenses and harbor fees (for anchoring, loading and unloading goods)
and rent for land, reefs and lagoons, or buildings and other council property.
21
84. However, no harbor fees are currently being charged at most local harbors,
including Kulhudhuffushi. Furthermore, despite the Decentralization Act
allowing the Councils to keep these revenues in their accounts, the MFT has
instructed the Island Councils to transfer those proceeds to central government.
85. New public infrastructure in the Maldives is planned and funded through the
Public-Sector Investment Program (PSIP). The MFT runs this in parallel to the
preparation of operational budgets to form part of the overall budget. When
additional infrastructure is required, the relevant Ministry will apply for
funding through the PSIP. These applications will be considered during the
budget process.
86. The operation and maintenance of existing and new infrastructure is included
in the operational budgets transferred from the MFT to MHI. Councils may
also apply for budget support for infrastructure spending through the PSIP.
MHI suggested that PSIP processes are too complex for Councils to follow and
may need to be centralized within MHI for the purpose of the Kulhudhuffushi
harbor expansion project.
87. In terms of recruitment, the Civil Service Commission (CSC) in consultation
with the councils, assign positions, appoint and dismiss staffs, who work in the
administrative offices of the atoll councils, the island councils, and city
councils. The staff of these offices will be governed by the Maldives Civil
Service Act and the regulations formulated by the CSC under the Act.
88. As outlined above, based on reported issues from local councils, MHI in
coordination with PWS determine large-scale maintenance works for the
following year, with priority given to programmed works that may be deemed
necessary including special inspections. In parallel, MHI in collaboration with
PWS also determine the annual maintenance costs of all the listed maintenance
works needed for the following year. MHI then submits the proposed budget
for Government approval. Once the state budget has been finalized and
approved the General Maintenance budget will then be set by MHI.
89. From meetings and discussions with MHI, PWS and KLC, there are no
established financial cost centers or cost codes. As such, it appears that there is
no clear system of identifying maintenance costs that have been absorbed at the
various locations and their asset allocation. Although a work request is raised
by MHI and issued to PWS to commence the large-scale repair works, the cost
of the maintenance works is generally found via the information after PWS
completes the said works and returned the work request to MHI.
22
90. Furthermore, whilst the maintenance budget request is a submitted as a general
budget based on the accumulative large-scale maintenance needs for the coming
year. The full request allocation may not be passed for approval by the
government and as such some maintenance may activities may not get done.
91. The financial system currently being used is ‘SAP’ but this would need to be
checked to see if it has features that can accommodate the use of cost centers
and cost codes to establish where the maintenance expenditures are allocated.
92. We have been advised that MHI has no maintenance cost history, no clear cost
assigned to each asset, and no clear alignment link between MHI maintenance
and finance.
93. Whilst there is a general state maintenance budget which is established in part
for the harbors for the specific works identified for the following financial year,
funding of the large-scale maintenance is taken out of this budget.
94. For the Council, whist the local councils manage their small maintenance budget
allocation the same cost centers / cost codes established can be used to for their
costs. KLC’s maintenance budget is established for two cleaning contracts and
a budget for small general maintenance, there is no cost centers / cost codes
established that are associated to the harbor assets.
3.4 Recommendations on Harbor Financial Management 95. Procedurally and financially, the following recommendations are made in view
of the situational assessment shown above:
- Cost centers and codes should be established and used by MHI Finance
against the various harbor locations (Cost Centers) and their assets (Cost
Code/s) that make up the harbor and thus can be used to identify the
maintenance costs against the specific asset within the harbor. This is key to
identifying the financial cost of the service life of an asset.
- MHI should start evaluating the cost service life of the asset from financial
information. MHI/PWS to establish a ranking of criticality of Harbor
maintenance to be done in the yearly large maintenance program.
- The maintenance budget for the harbors should only for those harbors that
have been approved for maintenance; and should be controlled via harbor
(Cost Centers) and asset (Cost Codes) following priority rating of importance.
- In the long-term actions, once an accumulation of sufficient maintenance
history is achieved, MHI should develop a process for determining the life
cycle cost of the harbor assets from maintenance and finance history.
23
96. In terms of training and capacity building, the following actions have been
recommended and implemented:
- Developed and conducted workshop and awareness program for MFT, PWS,
and MHI so that harbor maintenance ‘systems’ become more aligned via
Asset Codes, Cost Centers and Cost Codes.
- Developed and Conducted training on how to establish Cost Center and Cost
Codes and associate them to WOs for the benefit of MHI, PWS, and KLC.
- MHI and Finance to have monthly review meetings of the Harbor
maintenance costings
- MHI to monitor the approved general Maintenance Budget for large scale
maintenance repairs to assure it is in line with expectations.
97. As a guide to KLC, Appendix 4 shows the financial manual and procedures of
MPL.
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4. OPERATIONS AND PROCEDURAL MANAGEMENT
4.1 Overview of Kulhudhuffushi Local Harbor and Operations
98. The local harbor in Kulhudhuffushi is one of the two major harbor infrastructures
(next to KPL) and is used by domestic vessels which includes fishing boats, speed
boats and launches, and cargo and passenger boats, both those registered in
Kulhudhuffushi and those calling or visiting for various purposes.
99. Commercial shipping services connecting Kulhudhuffushi to the rest of the
Maldives include weekly services to-from Malé; public ferry services to-from
smaller islands in the Northern atolls, and several non-regular cargo and passenger
services. In addition, Kulhudhuffushi is currently accessed from Malé and elsewhere
via Hanimadhoo airport followed by approximately a 30 minutes transfer by
speedboat. Kulhudhuffushi is also a major fishing harbor, although fishing activity
has reduced over the past decade.
100. The existing local harbor is located on the North-Western corner of the island
and caters to all domestic vessels based in or visiting Kulhudhuffushi. Rubble
mound breakwaters provide protection from waves along the Northern and Western
perimeters, and to the Northern side of the harbor entrance. The entrance is
approximately 45 m wide on a bearing of approximately 30 degrees south of East.
Figure 6: Kulhudhuffushi harbors
Source: CDTA Team
Existing Harbor
Local
Harbor
Harbor expansion
Kulhudhuffushi Port Ltd.
(KPL)
25
101. The harbor is sheltered with a break water made from rock boulders. The 45m
entrance of the harbor is on the North-West side of the harbor. With the boats
registered in Kulhudhuffushi and those visiting and from nearby islands, the harbor
is congested at peak periods, especially on Saturdays and Thursdays.
102. The Southern and Eastern harbor perimeters have quay walls separating the harbor
from the onshore reclamation, approximately 115m and 300m in length, respectively.
To the North of the 300m long quay wall is a beach of length approximately 190m,
which currently accommodates a slipway and maintenance area. The Southern
perimeter of this area has a quay wall approximately 70m in length joining the 300m
long quay wall. The total area of the harbor is approximately 47,000 m2. At present,
passengers and/or cargo boats share the existing harbor with fishing boats, speed
launches, and small crafts.
103. The proposed harbor expansion lies on the West of the existing local harbor and will
include a passenger harbor component, which can also accommodate multipurpose
cargo operations; and a waterfront recreational area and mooring component for
speed boats and small crafts, which can be developed in the future for further port
expansion. This will allow the existing local harbor to operate as a dedicated fishing
harbor in the medium and long-terms.
Figure 7: Kulhudhuffushi harbor expansion
Source: CDTA Team
104. Saturday is the busiest day at the harbor and the retail and wholesale outlets.
Significant number of people from the three northern most atoll visits
Kulhudhuffushi on Saturdays. They come for medical services from the 50-bed
hospital, buying their weekly or monthly requirements of food items and other
consumables, hardware and building materials. On the same day, the Saturday
market is also the place where the visitors used to sell their produce from their
farms and home-grown vegetables and fruits and other locally made products.
26
105. Five large cargo boats of length 100ft each are operated by the three most
influential businesses in the island; Mithuru, Aa point, and Liyaa. Those businesses
control both the shipping market as well as the wholesale, general retail and outlet
markets in Kulhudhuffushi market and the neighboring atolls which frequently take
supplies from their wholesale outlets. The business community expects a boost in
all the economic activities once the harbor’s expansion is completed and becomes
operational. In their view, the benefit of the project will be maximized when the
airport will also be built and operated.
106. As outlined above, the local harbor is currently operated with minimum or no
supervision. Ships of various types and sizes call the harbor and occupy berth and
mooring space as they wish with no prior warning or scheduling. There are no
management or operational standards put in place for ships’ morning, berthing, and un-berthing, passengers’ embarkation and disembarkation, and cargo handling on
board and ashore. This is further exacerbated by the lack of skills and resources
within KLC to manage and monitor various aspects of harbor safety, operations,
maintenance and management. There are no records or statistics on the number and
frequency of ships’ calls, passenger numbers and trips, tonnage and type of cargo
traffic, let alone on operational or safety incidents within the harbor.
4.2 Guidelines for Harbor Operational Procedures
107. The proposed guidelines take into consideration existing local regulations and
international best practice on harbor rules and procedures, and the gaps observed
by the CDTA team with regards Kulhudhuffushi’s harbor’s safety, operations and maintenance.
4.2.1 Vessel entering and exiting the harbor
108. Prior to the entry of the vessel, the HMO shall be notified so that the vessel shall
be informed about the status of the harbor. This will minimize any chaos and any
unsafe situation that might occur if the harbor area is busy. However, there cannot
be advanced bookings for the slots, and cannot reserve a specific location at the
quay wall. All the vessels prior to the entry or upon entry for the first time, shall be
registered in the HMO. All the documents and the information for the registration
shall be provided by the captain of the vessel to the HMO.
109. The documents required for registration of the vessel at the HMO are:
- Vessels Registry
- Sea worthiness / Safety Certificate
- Load line Certificate
110. Entry to the harbor shall be for the purpose of loading, unloading of cargo and/or
embarking and disembarking of passengers. The berthing of vessels will be
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organized and allowed on a first come first serve (FCFS) basis. The service shall
be provided only to the vessels that comply with the rules and regulations of the
MTA and the vessels shall have the valid seaworthiness certificate on board and
shall not be loaded above the load line level.
111. The official on duty from the HMO (Harbor Master or any official who works in
that capacity) will allocate the berthing slots for the vessels. S/he may instruct to
un-berth or move to a different location or slot. These instructions shall be followed
by all the captains using the harbor.
112. A similar mechanism shall be established at the HMO to monitor vessels’ movement in and out of the harbor. At least one safety/security officer or a
supervisory officer will be present on duty at the harbor area at any given time. It
is the Captain’s responsibility to inform the HMO about the vessel’s expected time of departure with enough lead time so that the documents can be ready for
permission without delay. A vessel shall pay and settle any dues, fees or fines
payable to the HMO before the vessel is granted permission to leave the harbor.
113. In a situation where the HMO has declared an emergency, entry and exit of vessels
shall follow instructions from HMO without excuse or delay. An emergency status
can be declared by the HMO in situations arising from natural disasters, fire
incidents, accidents and any other situation that may be decided by the Council.
The operational command on this situation will be given by the Harbor Master or
any official who works on that capacity.
4.2.2 Vessel double banking
114. Where the harbor is busy, congested and quay wall is fully occupied, and subject
to approval by the Harbor Master or any official who works on that capacity, a
vessel can be moored alongside another vessel double banked. This operation will
have to be carried out at the risk of the two captains, the HMO will not take any
responsibility for any loss or damage that might cause to any of the vessels, cargo
or people due to this operation.
4.2.3 Cargo loading and unloading
115. Loading or unloading operation shall be done in accordance with the rules and
regulations made by the HMO and all the safety precautions shall be taken and safe
working methods shall be followed always. The captain of the vessel or someone
assigned by the captain shall always be present while loading/unloading and/or
embarking/disembarking takes place, and they shall take full responsibility of all
the activities and whatever being loaded or unloaded. At the same time, the HMO
will have the authority to stop any operation within the harbor area if they find that
the operation is unsafe. It is the responsibility of the Captain to submit the cargo
manifest and the list of crews and the passengers travelling on the boat.
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116. Loading and unloading operation shall be carried out by a labor force assigned by
the boat owner and the work shall be supervised by them. In some cases, this could
be the crew of the boat or if decided it can be another outside party arranged by the
boat owner. The HMO could assist in providing contacts of labor groups that can
be contacted by a boat owner for the unloading operation. The captain is
responsible to ensure the safety regulations are strictly followed.
4.2.4 Dangerous goods handling
117. Its common practice that the local boats to carry goods that are considered
dangerous with the other cargo and passengers without much consideration of the
risks and consequences of incidents that might occur. Goods such as cooking gas
in cylinders, Oxygen and acetylene cylinders, petrol, diesel and kerosene, are
usually carried on these vessels without much precaution.
118. The HMO should implement systems for the proper identification, acceptance,
segregation and transport of dangerous cargo based on local and international
standards and regulations. The staff must be given training on various aspects of
dangerous goods management, including identification, handling and storage of
dangerous goods at the harbor. The harbor shall have a segregated access-
controlled area for the storage of such goods with emergency response procedures
and equipment to ensure collection and containment in case of an accident.
4.2.5 Cargo storage
119. Cargo can be allowed to keep on the apron of the harbor for a period specified in
the harbor’s tariff for free of charge. After the free storage period is over, the
storage charge for the cargo kept there will be charged according to the rates
specified in the tariff. The vessel will be allowed to leave after all the charges are
paid. Where warehouses are provided, a storage charge should be applied (daily or
weekly).
4.2.6 Passenger terminal operations
120. If not properly organized, the passengers and pedestrian movement within the
harbor area could cause chaotic situations and often could result in accidents and
congestion. Harbor rules and regulations should also include terminal passenger
operations, passenger embarkation and disembarkation, and passengers and
pedestrians’ movements within the terminal as outlined below.
121. The passenger and ferry terminal shall be a common user facility to be used by
different ferry service providers and boat operators. The access of passengers to the
harbor area shall be through the terminal gates. There will be areas dedicated for
uses by people coming in for different purposes to the terminal. It is required to
have adequate capacity in the terminal for the operation of the system. The terminal
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area shall be developed to include ancillary activities (shops, cafes, restaurants,
etc.) which would generate income to sustain operation.
122. For the convenience of the passengers and the users of the terminal, information
regarding trip schedules, vessel details, safety notice information, etc. should be
displayed inside the terminal by the HMO.
4.2.7 Tickets and Ticketing
123. Passengers have to buy tickets from the ticketing office or ticketing counters to
enter the harbor area through the terminal. Tickets are in fact a contract between
the buyer and the service provider in which both agree on the terms and conditions.
The HMO shall facilitate ticketing counters for the ferry or boat service providers.
124. It is often required to have a valid ticket to have access to some parts of the terminal
such as waiting area beyond the boarding gates, and other areas where the
signposted to indicate whether the tickets are required. Special arrangements will
be made by the HMO and ferry operators for the people with physical disabilities
and those with special needs such as the elderly, pregnant women and children.
4.2.8 Passengers’ embarking and disembarking
125. Passengers will have to follow the instructions given by the HMO and vessel
operators and normally there will be a waiting area beyond the gates, before they
are allowed to board the vessel. Each passenger shall have a valid ticket and
continue to have it throughout the trip. The access to and from the vessel shall be
properly illuminated and free from obstacles and objects that might obstruct the
movement of passengers. The access to the vessel shall have safe gangways so that
passengers can board or disembark the vessel safely.
4.2.9 Luggage handling
126. Passengers will be allowed to carry their hand luggage by themselves as decided
by the HMO and vessel’s operator. Service provider will decide on the number of
pieces, and size of the hand carrying luggage that will be allowed. This may be
different for different vessels and service providers. It will be the responsibility of
the passenger to take care of their belongings that they carry by themselves within
the terminal and on board the ferry.
127. Large luggage will be handled separately and will need to be handed over to the
HMO and/or vessel operators in a way that they regulate. The HMO and the vessel
operator will have a regulated agreement on how luggage and the cargo will be
received and handled and loaded to the vessels. Normally, cargo and large luggage
will be loaded well ahead of the time that the ferry leaves, so that the departures
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will not be delayed for loading of such items. Where applicable, passengers will be
given a luggage tag when their luggage is checked in.
4.2.10 Entry and use of vehicles inside the harbor
128. The following shall be followed for the entry and use of vehicles in the harbor area
for the area to be safe for the people and vehicles using it:
- Harbor area should have appropriate signs and markings for the vehicles and
people.
- Vehicles and pedestrians should be separated as much as possible within the harbor
area, possibly by excluding pedestrians from the vehicle operating areas, and
loading and unloading areas.
- Any vehicle entering into harbor area will be permitted with an entry sticker or a
pass.
- All vehicles should be safe, provided with suitable visibility aids, repaired and with
a valid roadworthiness certificate.
- The drivers should be fit and competent to operate the vehicles they use at work
and must have a valid driving license.
- All vehicles driving and operating inside the harbor area should follow the speed
limit, traffic signs and the safety instructions implemented by HMO.
- Vehicles coming in for loading and unloading of cargo should use the dedicated
areas for the operation.
- The vehicles should leave the harbor area as soon as the loading or unloading
operation is over.
- Supervisors and the safety/security officers at the harbor area should monitor the
movement of vehicles and people inside the harbor area.
4.2.11 Garbage Disposal and environmental considerations
129. The HMO shall implement a mechanism to manage the different kinds of waste
and garbage that is generated in the harbor area or garbage that might need to be
disposed from the boats in accordance with the government laws, policies and the
regulations. The HMO shall provide facilities, increase awareness amongst the
harbor users, to keep harbor area clean.
130. Throwing of garbage or any hazardous material in to the harbor area is not allowed
and it’s the captain’s responsibility to organize the disposal of the garbage
generated from each vessel. The HMO shall arrange collection of garbage from
vessels and a fee shall be charged for the services. The collected garbage shall be
taken to the garbage disposal site for proper disposal. Used oil or environmentally
hazardous material must be disposed carefully and it must be handled separately to
the other general waste and garbage.
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4.2.12 Paying for harbor usage and services
131. Where a port tariff is being charged, users of the harbor shall pay a fee according
to the harbor tariff schedule. For the usage of harbor, the charge shall commence
from the time that the vessel is berthed or moored. Charges for other services like
water, electricity or rental of equipment will be calculated as specified in the tariff.
The vessel will be allowed to leave the harbor once all the fees and dues are paid.
4.2.13 Marketing and promotion
132. Kulhudhuffushi enjoys its historical recognition as the capital of the North, for the
reasons it has better resources and facilities that the other islands have, such as a
hospital and comparatively large stores where the nearby islanders come for trading
and medical services. Further development of the harbor is expected to attract even
more users and visitors. To this end, the harbor management will need to promote
the harbor as a business opportunity for the small and medium entrepreneurs, as
well as for single users (e.g. passengers) and the wider public. The HMO shall
organize forums at least twice annually for harbor users, business community, the
general public, the youth and school children.
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5. SAFETY ASSESSMENT AND MANAGEMENT
133. This Chapter provides an assessment of harbor safety systems and procedures
currently in place and recommendations for improvement and implementation. The
assessment of harbor safety and risks has been conducted using both face-to-face
interviews and on-site observations and physical inspections. As a result, a number
of safety guidelines, recommendations, and capacity building programs have been
developed and formulated. Where relevant, training and institutional actions have
been implemented as part of this CDTA.
5.1 Harbor Safety Assessment 134. Ports and harbors are often challenging and potentially high-risk places for both
users and operators. Maritime and harbor authorities must therefore put in place
adequate safety measures to assess, manage, and mitigate their risks properly.
135. Recognizing the safety challenges imposed by ship, cargo and passenger operations
in harbors, governments and international agencies have formulated and
implemented a number of safety regulations, often along regulations on port health
and environmental management.
136. Among international instruments developed in the field of harbor safety, worth
noting the regulations and codes of practices of the International Maritime
Organization (IMO) and the International Labor Organization (ILO) as well as
safety and quality standards developed by the International Organization for
Standardization (ISO). The most relevant harbor safety regulations include, but are
not limited to, the following:
- IMO International Convention on Safety of Life at Sea (SOLA) Convention
- IMO regulations on Load Lines (LL)
- IMO Regulations for Preventing Collisions at Sea (COLREG).
- ILO Dock Work Convention
- ILO Occupational Safety and Health (Dock Work)
- ILO Code of Practice on Safety and Health in Ports
- ILO/IMO Code of Practice on Security in Ports
- ILO Port Safety and Health Audit Manual
- ISO 45001: Occupational Health and Safety (OHS) Management
- ISO 55001: Asset Management
137. In the Maldives, domestic maritime transport is made of small vessels of less than
500 Gross Registered Tonnage (GRT) plying routes between local harbors. As
such, international maritime regulations do not apply to those vessels or to their
harbors of call.
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138. For domestic ships’ safety, the main and most recent regulation on ship safety in
the Maldives is the 2017 ‘Safety Regulation Governing Vessels Travelling in the Territorial Seas of Maldives’ (See Appendix 5). A number of safety criteria and
safeguards are addressed in the regulation covering key areas of ship safety
including ship registration and inspection, safety equipment and requirements,
crew capacity and licensing, communication and transmission systems, and
environmental management and pollution prevention.
139. However, the Regulation does not address the specific issues related to harbor
safety including ship’s safe berthing and unberthing, cargo handling and transfer,
passenger embarkations and disembarkations, the safety of harbor assets and
equipment, work regulations and OHS, and the procedural and institutional aspects
and dimensions of harbor safety.
140. Institutionally, the main maritime safety regulating and implementing agencies in
the Maldives are the MTA, the Coast Guard Section of the National Security
Service (NSS), and the Atoll and Local Councils. Local councils such as KLC play
an administrative role by implementing decentralized maritime functions on behalf
of the MTA, most notably for procedures related to ship’s registration, certification
and inspection.
141. For harbor safety, the local councils, being the custodians of local harbors, are the
authorities responsible for developing and implementing harbor safety regulations
and procedures. For the Kulhudhuffushi local harbor, KLC has indeed a local
harbor safety regulation, but the latter is very basic and weak and barely addressing
key issues in harbor safety. More worryingly, the KLC has not trained or qualified
staff to assess safety risks and hazards in the harbor, let alone implement and
monitor safety procedures and regulations.
142. As evidenced from interviews, onsite observations and expert analysis, major gaps
and lapses have been identified and documented for the Kulhudhuffushi’s harbor operational and procedural safety. There is little or no awareness of safety hazards
and risks, no formal system or protocol for safety assessment and management, and
no competent authority or employee to monitor and implement safety rules and
procedures.
143. Further evidence of observed gaps and deficiencies in safety management in
Kulhudhuffushi harbor include the following:
- No statistics or data on ship’s arrivals and departures, cargo handled, and
passenger transfer is currently being collected on a daily or regular basis.
- No system is in place for regulating and monitoring ship’s mooring, berthing
and unberthing.
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- No system is in place for supervising and monitoring ship’s navigation into,
out of, and within the harbor basin.
- No daily or weekly checks are carried out of vessel certificates and validity
as well as required crew certification.
- No information or explanatory introduction is provided to passengers on
ferries and small boats on ship’s safety rules, use of life vests, and emergency procedures.
- No regular inspection of harbor assets and facilities with regards safety
requirements and standards.
- No system is in place for monitoring and implementing OHS guidelines and
procedures, where applicable.
- Cargo consignments are handled in an unsafe and unsupervised manner. This
is particularly the case for the handling of hazardous goods and materials.
- No operational system or procedural arrangement exists for managing truck
vehicles, taxis, personal cars and motorbikes parking within or near harbor
quay and apron areas.
- As the harbor is not fenced or zoned, no guidelines or rules exist for regulating
harbor access by the general public. This is made worse by the absence of any
periodic safety awareness program for harbor usage.
- Waters in the in the harbor basin are polluted with debris, empty plastic
bottles, rubbish, pieces of wood and other fine polluters; indicating poor
environmental management and lack of awareness from both harbor users and
operators as well as from the general public.
5.2 Recommendations on Harbor Safety 144. Based on the above feedback and observations, there is a need for an overhaul of
safety culture, systems and procedures in the Kulhudhuffushi local harbor. As part
of this CDTA, several actions have been developed and implemented:
- Guidelines for safe berthing policy for Kulhudhuffushi harbor and other local
harbors in the Maldives.
- Guidelines for safe operations and management of harbor assets.
- Guidelines for safety activity plans and work procedures in the harbor.
- Development and implementation of a harbor safety awareness program.
- Institutionalization of the above at the level of KLC.
- Training on harbor safety for boat drivers.
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145. In the long-run, ensuring safe harbor operations and compliance will only be
possible once a proper HMO is established with a well-qualified and resourced
Safety and Security Officer fully in charge of harbor safety. As explained in the
CDTA Feasibility Report on harbor-user charging, the proposal of introducing a
harbor user-charging scheme in Kulhudhuffushi would further support the
implementation and good compliance of safety rules and regulations.
5.3 Guidelines on Safe Berthing Policy 146. The objective of the Safe Berthing Policy within Kulhudhuffushi, and which can
be extended to other local harbors in the Maldives, is to provide well-defined,
transparent and non-discriminatory guidelines for the allocation and use of berthing
space in the harbor. These guidelines should be planned and implemented in
conjunction with the guidelines on harbor operations as shown in section 4.2 of this
Report.
147. The Kulhudhuffushi harbor and other Maldives harbors adopts the policy of First
Come First Served (FCFS) as a general rule. In case more than one vessel requires
the use of a particular berth, the following criteria will be adopted by the HMO for
determining the priority for berthing of the vessels:
- The vessel has duly submitted the required declaration and information prior
to her arrival to ensure that she is in a safe technical condition that will not
compromise harbor and maritime safety.
- Vessel has given a 12-hr notice of Expected Time of Arrival, except vessels
calling from nearby harbors or from within the Region.
- Vessel which has physically arrived within the port’s limits and registered herself with the HMO, giving all required vessels particulars.
- Seniority of a vessel will be counted based on the type of vessel and the time
of her arrival as well as on harbor’s management clearances and readiness.
- If the vessel is not allotted an immediate berth on arrival, the vessel will be
allowed to drop anchor at the harbor’s basin in line with the HMO’s guidelines and instructions.
- Unless otherwise specified, a vessel’s arrival time to the harbor is equivalent to her Notice of Readiness for berthing and operations.
- Mooring and un-mooring of the vessel should follow the directions given by
the HMO. However, as the Captain of the vessel is responsible for the safety
of his vessel and as such may interfere in the procedure and system of
mooring and the number of lines to be used.
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148. To above are valid and applicable general considerations of the harbor’s berthing policy. Such policy may be subject to changes owing to maritime and harbor
conditions at the time of vessel’s approach and arrival, including the followings:
- Weather and sea conditions,
- Marine incidents and security situations,
- Maritime traffic conditions in the area,
- Any other condition which may in the opinion of the HMO be an objective
reason to deviate from this policy.
149. At the occurrence of one of these conditions, the HMO will communicate this
information in a timely manner, providing advice and directions to the vessels
concerned on berthing instructions and guidelines.
150. Deviations from the general berthing policy may also occur in the following cases:
- Government and coast guard vessels,
- Distressed vessels and those with emergency needs,
- Vessels carrying dangerous cargoes,
- Special vessels and those with extreme tonnage, drafts and lengths.
151. For un-berthing, the above general conditions and exceptions also apply.
5.4 Guidelines on Safe Harbor Operations 152. The objective of the Safe Harbor Operations Guidelines within Kulhudhuffushi,
which can also be extended to other local harbors in the Maldives, is to provide a
guide for the HMO on how to formulate, implement and manage a structured and
a comprehensive health and safety policy for harbor operations; combining both
preventive measures targeted at reducing risks as far as practicable with mitigating
measures targeted at accident mitigation and procedure.
153. The following harbor safety guidelines should be planned, implemented and
aligned with in conjunction with the guidelines on asset management and
maintenance (section 3.2), the guidelines on harbor operational procedures (section
4.2), and the guidelines on safe berthing policy (section 5.3).
5.4.1 Workplace transport
154. Many transport-related accidents in ports and harbors van be serious or fatal. Many
different employers’ drivers use harbors and not all of these drivers will be familiar
with the harbor working environment, as has been observed in the case of
Kulhudhuffushi harbor.
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155. Typical workplace transport hazards in harbors include the followings:
- Loading and unloading of vehicles.
- Movement of vehicles and other plant on the quayside.
- Trailer coupling and uncoupling on the quayside and on the vessel.
- Vehicle/pedestrian access such as vessel ramps and gangway.
- Reversing vehicles on vessel decks.
- Movement of vehicles in storage areas and lorry parks.
156. An effective way to reduce workplace transport risks is to manage and monitor
them under the ‘Safe Site, Safe Vehicle, Safe Driver’ guidelines as shown below.
- Safe site:
o Every workplace should be safe for the people and vehicles using it.
o Provide appropriate road signs and markings.
o Vehicles and pedestrians should be separated where they share the same
workspace. This may involve excluding pedestrians from certain areas or
providing separate pedestrian routes.
- Safe vehicle
o Vehicles should be safe, provided with suitable visibility aids, regularly
maintained, repaired and inspected.
- Safe driver
o Drivers should be fit and competent to operate vehicles they use at work.
o Workers should follow safe working practices.
o Management should monitor these practices.
5.4.2 Lifting operations
157. Loading and unloading in harbors involves the use of a wide range of lifting
equipment. This may include cranes, trucks and other machinery. Poorly planned
lifting operations can lead to significant risks to people working in the harbor area.
158. Typical hazards from lifting equipment include:
- failure of lifting equipment
- falling loads and
- workers being crushed by a moving load or lifting equipment
159. Measures and procedures for reducing risks from lifting equipment include:
- Use suitable lifting equipment to securely lift cargo
- Use a competent person to plan the lift.
- Don’t lift over areas where people are likely to be working or passing.
- All lifting equipment should be properly inspected, examined and certified.
- Ensure workers and supervisors are trained and experienced in safe lifting.
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5.4.3 Falls from height
160. Many of the activities carried out in harbors could lead to a fall from height. This
may be during routine operations or maintenance activities. Furthermore, the added
hazard of working near water means a fall may lead to the risk of drowning.
161. Typical falls from height hazards in ports include:
- Access to and from vessels by accommodation ladders and gangways.
- Container-top working, use of slewing jib cranes.
- Access to and from places of work onboard vessels, e.g. holds, hatches, decks.
- Falls from vehicles during loading/unloading and sheeting.
- Falls from car transporters.
- Falls during the course of maintenance work.
- Unloading some types of cargo such as pipework and timber packs which can
result in open edges from ships’ decks.
- Working adjacent to open edges of berths and wharves, a practice often used
in Kulhudhuffushi harbor.
162. Strategies and measures to reduce fall from height risks include:
- Risk-assess any work carried out at height, and use suitable work equipment
- Avoid work at height where possible
- If work at height cannot be avoided, use work equipment or other measures
to prevent falls such as guardrails and mobile elevating working platforms.
- If there is still a risk of falls, use work equipment that minimizes the distance
and consequences of a fall, e.g. nets, airbags, and fall arrest systems.
- All work at height should be properly planned and organized
- Workers involved in work at height should be competent
- Equipment for work at height must be properly inspected and maintained
- When working over or near water, workers should wear suitable personal
protective equipment, e.g. lifejackets or buoyancy aids. There should also be
provision of dock premises with adequate and suitable rescue and lifesaving
equipment and means to escape from danger.
5.4.4 Dusty cargoes and hazardous materials
163. Many of the cargoes handled in Kulhudhuffushi and other Maldives local harbors
include grain, soya, cement, sand as well as hazardous materials such as paints,
vehicle batteries, acids, solvents, and chemicals.
164. During handling this cargo, large quantities of dust may be produced. In some
cases, e.g. sand and cements, the dust is the particles of the material itself. Different
dusts have different effects on health, but the most important effects of dusty
cargoes are on the lungs. The chronic effects are often permanent and disabling.
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165. Measures and strategies to reduce the risks from dusty cargoes and hazardous
materials start with preventing exposure to hazardous dust. If it is not possible to
prevent exposure, then measures should be put in place to adequately control
exposure to the dust, including:
- Restrict staff entry to dusty areas.
- Use totally enclosed, continuous handling systems. These usually provide the
best control and should be used whenever reasonably practicable.
- Suppress dust with sprays of water or other binding agents.
- Ensure all equipment used to reduce dust exposure is properly maintained.
- Design tasks to reduce the amount of dust generated.
- Provide suitable dust-filtration systems to the cabs of all new loading shovels
used to handle dusty cargoes.
- Provide respiratory protective equipment. This should be suitable for its
purpose, maintained and compatible with other protective equipment worn.
- Where appropriate, provide health surveillance for workers.
5.4.5 Musculoskeletal disorders
166. Port and harbor employees carry out a number of activities which, if not properly
managed, may lead to a variety of Musculoskeletal Disorders (MSDs). These
include back pain and muscle injuries and are often the result of poor handling
techniques or tasks involving repetitive movements and/or excessive force. Injuries
can also be caused by the vibration created by some vehicles; this is known as
whole-body vibration. Some people may not fully recover from MSDs and they
can greatly affect your quality of life.
167. Areas where MSD hazards can be found in harbors include:
- Manual maneuvering of lifting gear and attachments or slung loads.
- Handling of twist locks and unlocking poles.
- Lifting/maneuvering of lashing bars.
- Breaking out pre-packed or palleted loads.
- Storage and warehousing activities.
- Hauling mooring ropes off large ships
- Vibration transmitted through the seat or feet of employees who drive mobile
machines over uneven ground or on rails.
168. Measures and actions to be taken to reduce MSD risks include:
- For manual handling
o Use mechanical aids such as motorized winches for hauling mooring
ropes of large ships, vehicle-mounted hydraulic hoists, portable roller
conveyors, pallet trucks, scissor lifts and customized trolleys.
o Consider whether a load can be changed to make it easier to carry, for
example smaller packages, providing handles or hand-holds.
o Adopt safe lifting techniques.
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- For whole-body vibration
o Use appropriate machinery for the job.
o Maintain plant and equipment.
o Maintain roadways, quays, container park surfaces and rails.
o Take account of vibration information when buying or hiring equipment.
o Provide drivers with information on how to reduce risks to their health.
5.4.6 Slips and trips
169. Over a quarter of all reportable accidents in harbors are due to slips or trips. These
can be serious often resulting in broken or dislocated bones and long periods off
work for harbor workers and users including passengers and the general public.
170. Typical slip and trip hazards in ports and harbors occur when:
- Working on uneven or wet surfaces on loads.
- Using badly stowed ropes, cables, lashing gear and other equipment.
- Using aluminum plate surfaces on walkways and access steps when wet.
- Using discarded packaging and pallets.
- Working on poorly maintained, damaged or uneven berth surface
- Working on broken berth curbs.
171. The followings are some effective measures for reducing slip and trip risks:
- Specify appropriate flooring and surfaces.
- Maintain plant to prevent contamination, e.g. oil getting onto the floor.
- Ensure corrective maintenance is performed on berth surfaces
- Provide storage bins to store lifting gear.
- Maintain floors, steps and walkways in a good condition.
- Select suitable footwear for the task.
- Provide adequate lighting.
5.4.7 Confined Spaces
172. People are killed or seriously injured in confined spaces each year worldwide. This
happens in a wide range of industries including ship and harbor spaces. In harbors,
confined spaces can be found in ship holds, warehouses, silos and bins and can be
a potential hazard due to a number of causes, including:
- Lack of oxygen – possibly due to the cargo absorbing oxygen from the
atmosphere, rusting cargo such as scrap metal, decomposing or rotting cargo,
or gas cutting/welding;
- Too much oxygen – possibly due to a leak in stored gas bottles which can also
increase the flammability of substances; and
- Build-up of toxic or flammable gases – possibly due to decomposing or
leaking cargo, inadequate cleaning processes, or welding/vehicle fumes.
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173. Widely used effective measures for reducing risks in confined spaces include:
- Avoiding work in the confined space – work from outside if possible.
- Following safe system of work including positive ventilation of the confined
space, constant measurement of oxygen or gas concentration and use of
respiratory protective equipment.
- Following emergency and rescue arrangements and provision of appropriate
rescue equipment including harnesses and safety lines.
- Implementing a controlled access and permit-to-work systems. This ensures
a safe system of work is in place and improves communications.
5.4.8 Guidelines for Implementation Plans
174. In addition to the above guidelines, the CDTA team has developed two
implementation plans to help KLC and its proposed HMO incorporate and
institutionalize safety processes and procedures into their harbor management and
operating systems. Those plans have been shown and explained in formal meetings
and mock-up exercises with KLC staff.
175. Procedures and Topics for Harbor Safety Meetings and Talks as shown in
Appendix 6. On the one hand, pre-work safety talks are a good means of focusing
harbor’s staff awareness of the need to work safely during ship and harbor operations, in the HMO office, or whilst carrying inspection and maintenance
activities. On the other hand, monthly safety meetings need to take place via a
safety committee group, involving the harbor manager, the safety and security
officer, the harbor operations officer and follow co-workers directly involved with
harbor operation and maintenance to discuss any health, safety and environmental
issues and any particular accident/s that may have occurred during the preceding
month with minutes taken and remedy actions recommended and acted upon.
176. Harbor safety schedule plans, an indicative sample of which is shown in Appendix
7. An annual or semi-annual harbor safety schedule plan should be established
which shows the monthly safety and environment tasks to be conducted to ensure
compliance with regulations and ongoing improvements with respect to health,
safety and environment within the harbor. The plan also shows how well tasks are
completed.
42
6. INCOME AND LIVELIHOOD OPPORTUNITIES
177. As part of this CDTA, an assessment of livelihood opportunities within the existing
and future harbor expansion in Kulhudhuffushi was conducted to assess the
existing capacity and needs for income generation in the population of
Kulhudhuffushi.
178. As an initial step to undertaking this assignment, several consultative meetings
were held with KLC, MHI, NGOs, SMEs, fishers, boat owner, and the CDTA team.
This was done so as to ensure that it incorporates all constructive views and
suggestions from all key stakeholders; build on the current capacity strengths and
the required capacity needs that would ensure the implementation of the project.
179. In undertaking this assignment, various methodologies and tools were utilized. The
selection of the tools used in this Capacity Needs Assessment (CNA) was based on
the available time and resources allocated for this assignment and included, desk
reviews, interviews, and field surveys through an administered questionnaire.
180. The key instrument was the field survey used to collect the required data and
information for the purpose of this assignment. The field survey was limited only
to Kulhudhuffushi. The survey was conducted among selected Households of
Kulhudhuffushi to meet its objectives and aims.
6.1 Methodology Adopted for the Livelihood Capacity Needs Assessment 181. This CNA was developed to identify the specific, technical skills and development/
training needs for capacity planning, with particular emphasis on income
generation and livelihood activities. The primary objective was to identify the skills
and development activities, training and awareness required to gain an additional
income for the population.
182. Two stages were involved in the selection of the respondents. First, the sampling
frame was identified. Based on the terms of reference and discussion the sample
was selected based on multi-stage stratified random sampling technique. The
individuals for the interview were selected from the locations identified.
183. The following process model was used to provide a more strategic and integrated
approach to needs analysis. It assumes a nexus between training and the
organization′s mission and strategies. The stages are interconnected and naturalistic
rather than definite and discrete.
43
Figure 8: UNDP CNA Process
Source: UNDP Capacity Needs Assessment Methodology, 2007
184. The CNA adhered to the UNDP Capacity Needs Assessment Process which
includes the first two steps of the 5 stages of Capacity Development Process:
- Step 1: Engage Stakeholders on Capacity Development: Already occurred and
that stakeholder engagement and consensus building was an integral part of each
subsequent step of the capacity development process. At the initiation of CNA,
numerous meetings, consultations and correspondences were exchanged to agree
on the scope of the CNA.
- Step 2: This document is the outcome of the Step 2 of the capacity development
process: Assess, Capacity, Assets, and Needs. To assess the capacity assets and
needs, a 3-step process to conduct a CNA which was opted for the development
of this report.
Figure 9: Process used in Capacity Needs Assessment (CNA)
Source: CDTA Team
185. The activities in each step aim at deepening engagement of national partners and
promoting dialogue among key stakeholders around the CNA process.
Step 1: Engage Partners and
Build Concensus
Step 2: Asses Capacity
Assets and Needs
Step 3: Define CD Strategies
Step 4: Implement CD
Strategies
Step 5: Monitor and Evaluate CD Strategies
Capacity
Development
Process
Mobilise and Design
Conduct the Capacity
Assessment
Summarize and Interpret
Results
44
6.1.1 Mobilize and Design
186. Engaged stakeholders and a clear design are key to a successful CNA. The design
is driven by three guiding questions: capacity for why? capacity for whom? and
capacity for what? The 1st step of the CNA process ‘to mobilize and design’ focuses on answering these questions. Specifically, it covers the following
activities:
Figure 10: Activities followed through Mobilizing and Designing Stage
Source: CDTA Team
187. Conduct the CNA: The purpose was to determine the level of capacity needed and
assess the level of existing capacity.
188. Summarize and Interpret Results: This report is the result of the CNA and it
summarizes and interpret its results. It compares the level of desired capacity
against the level of existing capacity. This helps determine whether the level of
existing capacity is sufficient or needs improvement and in turn helps the team
identify where to focus the capacity development response. When interpreting the
assessment results, the team should try to discern patterns in capacity gaps.
6.2 Approach
189. A pre-inception meeting was held to understand the scope. The following schematic
diagram summarizes the key steps of the approach developed after this meeting.
•Keybeneficiaries were engagedEngage Stakeholders
•The objectives and expectations were agreed. At the onset the scope was agreed with that of the project.Capacity for WHY?
•Adapt the UNDP Capacity Assessment Framework to local needs - For Khulhudhufushi.Capcity for WHOM and WHAT?
•Data & information collection and analysis approach - A mix data - quantitative and qualitative data collected through semi-structured questionnaires
Data Collection
•Conduct the assessment - Collection of data through local enumeratorsTeam and Location
•Adhere to the cost the capacity assessment (based on team composition, design and duration) Budget
45
Figure 11: Schematic diagram showing the work methodology
Source: CDTA Team
6.2.1 The Sampling frame and sampling strategy
190. The survey was based on core sets of information, an area frame compiled from the
Population and Housing Census-2014. Overall information on blocks and number
of households in a block was gathered from the census listing for the specified
locations, which was used to select the blocks from the locations.
191. Sampling strategy used for this assignment was multiple stage sampling. Since the
locations was pre-decided, the Primary Sampling Units was the enumeration blocks
in these locations. Each block was considered as one strata. The Ultimate sampling
units was selected households from the stratums, which would follow simple
random sampling method. Stratification and selecting a sample from each stratum
stresses the representativeness of the sample selected. A simple random sample is
easy to execute and is highly representative if the total population participates. To
maximize on this positive quality in the sampling method, utmost care was taken
to obtain a comprehensive list of households in the stratums selected.
192. The suggested sample frame(s) and methodology improves the robustness of the
sample estimates by reducing standard errors and also helps absorb some of the
random noise that can originate from non-sampling errors. While the suggested
sampling design attempts to reduce the sampling errors to a minimum, the final
quality of data can be affected if non-sampling errors are present.
193. Non-sampling errors may result from a high proportion of non-responses, from
systematic errors in replies from respondents, from intentional wrong reporting by
respondents and from non-compliance with the sampling design. Errors can also
creep in at the data capture / entry stage, during the transfer of data from the
1. Understanding the scope and TOR
2. Translation of questionnaire
4. Field Testing
- Finalized questionnaire
5. Field Work
- Data
6. Data Cleaning & preparation of survey
- Survey reports
8. Submission of final reports and raw data
46
questionnaire hard copies to computer readable format. Since the prescribed data
collection methodology was a face to face interview, there was a low chance of
non-sampling errors creeping in if the questionnaire used was sufficiently simple
and a through training was conducted for the enumerators. Measures which was
taken before hand to minimize errors as much as possible include choosing
enumerators with a pleasant personality and easy communication skills, conduct
very thorough training for the enumerators and equip them in keeping ‘good rapport’ with the respondent. Furthermore, the utilization of the CAPP
(Community Awareness and Participation Plans; See below) would minimize the
non-sampling errors.
6.2.2 Data collection and analysis
Questionnaires
194. Survey questionnaire was developed to elicit the most important quantifiable data
for this assessment. Survey was carried out through a structured questionnaire
format. The questionnaire includes various research questions that intend to get
information for the research areas.
195. Field testing of data collection instruments and Refining: The data collection
instruments i.e. survey questionnaires was field tested first week of prior to
implementation; and refined based on the experience gained from the field test. The
questionnaire used for the field testing was in local language.
196. To undertake all these primary data collection activities, a well-designed Logistical
Survey Plan was prepared to maximize the utilization of resources and to minimize
the time needed for field work. The following table gives the number of households
that was surveyed.
Table 1: Details of the field data collection
Atoll Location Total
Population **
Sample
Size *
Field
Teams
Number of
Enumerators
Number of
Days
H. Dh Kulhudhuffushi 12,000 373 2 4 5
**source: Atoll office
* calculated using www.raosoft.com . Hence, a total of 399 was interviewed in this study.
Data Analysis
197. As the questionnaires was filled by enumerators using tablets the data was
automatically entered, coded and fed into the computer. Before analysis, an editing
for errors and coding for open ended responses took place according to specifically
prepared editing and coding instructions. After obtaining basic tables and cross
tabulations, statistical analytical tests were carried out to clarify any valid
inferences with regard to important issues related to specific objectives of the
assignment.
47
198. Data analysis and tabulation was carried out using a set of dummy tables prepared
by the CDTA Team. The information collected from the focus group discussions
was subjected to Content Analysis to synthesis the emerging findings.
199. Aimed at the preparation of the survey report, the CDTA Team interpreted the
outputs generated from the above.
200. A comprehensive list of indicators was developed in view of the expected outcome
from the analysis. This indicated the baseline situation, wherever applicable, and
the present situation in relation to the project objectives.
201. Findings of field research was triangulated and documented to ensure their
credibility and validity. Information gathered from the different sources was
checked through comparisons and verification discussions. For example,
information from surveys was cross checked with information gathered from Focus
Group Discussions. As far as this exercise was concerned project documents, focus
group discussions and household sample surveys constitutes as major information
sources. The CDTA team then compared data mainly from these three sources prior
to make conclusions and reporting. Evidence from secondary sources, stakeholder
consultation and interviews were supplementary sources of information and used
to support the findings gathered from the above three key sources.
6.3 Undertaking CNA 202. Capacity is defined as “the ability of individuals, institutions and systems to make
and implement decisions and perform functions in an effective, efficient and
sustainable manner” (GEF 2001; UNDP 2006b). In laymen’s terms “capacity is the power of something (a system, an organization, a person) to perform or to produce”. This implies that capacity is not a passive state but part of a continuing process and
that human resources are central to capacity development. The overall context
within which organizations undertake their functions are also key considerations in
capacity development.
203. Capacity development has been defined by many practitioners as the process
through which individuals, organizations and societies obtain, strengthen and
maintain the capabilities to set and achieve their own development objectives over
time. It is about improving performance of individuals, organizations and systems.
Capacity development is a concept which is broader than organizational
development since it includes an emphasis on the overall system, development or
context within which individuals, organizations and societies operate and interact
(and not simply a single organization).
48
204. CNA, on the other hand, is the process of analyzing the desired capacities against
existing capacities. This process generates an understanding of capacity assets and
needs that can serve as input for formulating a capacity development action plan.
205. Capacity has been shown to reside in three different levels that include (i) systemic
level; (ii) organizational level; and (iii) individual level. The systemic,
organizational and individual capacities combine to create an enabling environment
within which a country can take decisions in relation to given obligations, perform
specific functions and undertake particular actions in response to these obligations
as shown in Figure 14. These three different levels of capacity development are
indeed equally important and strictly interdependent because capacity development
interventions at one level are likely to have an impact on other levels as well.
206. These three levels provide a structure that allows capacity development to be
examined and analyzed. For the purpose of this report, capacity is extensively
assessed at individual level to provide a better understanding of the areas that are
lacking for livelihood generation.
Figure 12: Capacity Levels
Source: CDTA Team
6.4 Systemic Level Capacities
207. The systemic level is concerned with the creation of “enabling environments” that include policies and plans, economic, regulatory and accountability frameworks
within which institutions and individuals operate; the relationships that exist, both
formally and informally, between institutions; and the distribution of institutional
responsibilities. It represents the broad national context within which organizations
operates. It is concerned with policy at the highest levels in government, the socio-
economic conditions that enable or constrain the development and implementation
Systematic
Organizational
Individual
49
of development plans and strategies. Relationships and processes between
institutions, both formal and informal, as well as their mandates, are important in
capacity development at the systemic level (UNDP, 1998).
6.4.1 Current status
208. Analysis of the atoll and island council suggests that capacity is weak at systematic
levels for all institutions concerned. The main issue that did arise from our
assessment concerns the relationships that exist between the various local council
in Kulhudhuffushi and the central Government bodies. A general analysis of the
assessment indicates that there is less collaboration and networking between
Government agencies and local council.
209. Generally, there is also a serious lack of regulatory or accountability frameworks
at the highest level in local council resulting in substandard work ethics and
working environment. Subsequently, there is also a lack of understanding of the
fundamentals of local governance and planning principles leading to inadequate
level of governance at local level. There is a serious lack of collaboration and
communication among various institutions at island level and across other
administrative units.
210. The ability for organizations to network or cooperate requires specific skills to
manage issues “horizontally” across organizations, and not just “vertically” within organizations. Analysis suggests that these skills are lacking at leadership and
senior levels thus resulting in;
- Inadequate participation from other important stakeholders, and
- Ill-informed decision making as other important and relevant stakeholders are not
engaged.
211. The reasons for above mentioned deficiencies might be far fetching and wide
ranging, but it is apparent that a lack of human and financial capacity does have
serious negative impacts on the systematic capacity of the institutions concerned.
6.5 Organizational Level Capacities
212. The organizational level is expected to make informed interpretation and
application of the rules of the game spelt out at the systemic level and ensures that
its players (individuals) are well aware of the rules of the game and play by them
in carrying out their obligations/functions. The performance of organizations is
dependent on the broad systemic level capacity and setting. A review of KLC and
local organizations revealed several cross cutting organizational capacity
challenges.
50
6.5.1 KLC
213. KLC does not have adequate technical or financial resources to plan and manage
the harbor. Often the financial resources available to the Island and Atoll Councils
are inadequate and they do not have technical expertise to write proposals and get
funding from external donors or through NGOs.
214. KLC also noted that they do not get support from the central government to
implement the policies and these are often not communicated to the island council.
Hence, the societies do not value the island council’s plans and are often not backed. This also might be due to lack of participatory approaches in developing
these plans.
6.5.2 KPL
215. Similar to KLC, KPL does not get any support from the central government to
implement the policies and they are often not communicated. Hence, they will find
it challenging to manage the harbor even though they have trained individual,
capacity and machineries too.
6.5.3 Fenaka cooperation
216. Fenaka Cooperation provides electricity to the island communities. Even though
Fenaka’s institutional system is far better developed than KLC, due to the technical
skills level that is mandatory for the operation of Fenaka, they also lack the
technical expertise to operate and provide services to the public in a speedy manner.
6.5.4 Hospital
217. Similar to Fenaka, the Hospital have a systematic operational model. The increase
in crime rate due to robbery and gang related violence in the Maldives is also
reflected in Kulhudhuffushi as and has brought fear to doctors arriving from
abroad, prompting then not stay for a long period. The hospital faces difficulties in
bringing good practitioners. The hospital also lacks adequate budget to operate. At
the time of this CDTA, the hospital management has been awarded to Nims
Hospital of India.
6.5.5 Schools
218. Schools in Kulhudhuffushi also face same difficulties specifically the lack of
adequate financial resources. However, compared to other institutions they have
enough qualified professionals to operate. The schools also felt that they do not get
adequate support and cooperation from island communities to implement various
developmental related activities.
51
6.5.6 Women development committees (WDC)
219. The Women Development Committees (WDC) also do not have financial resources
to operate. Furthermore, the communities do not appreciate the importance and role
of WDC’ in the planning and development of the island communities. Local WDCs
also feel that they do not receive adequate communication and cooperation from
KLC. The council do not discuss island development and planning processes at all
with WDCs. Most of the educated female population often resides in Malé and are
not involved in the development of the island communities.
6.6 Individual Level Capacities
220. The capacity of an organization is embedded in the ability of its individuals to work
together within established rules and values and to interact with a wide range of
organizations that share common objectives. The individual capacity refers to
specific attributes enabling individuals to perform functions, make decisions and
ensure these are implemented in an effective, efficient and sustainable manner. The
individual level of CNA considers the individual’s competency to function efficiently and effectively within an organization and within the broader
environment. It is the most structured and familiar part of capacity development.
6.6.1 General assessment and survey’s findings
221. The findings on the status of the household, island council, atoll council and the
stakeholder institutions and NGOs in Kulhudhuffushi showed that one of the major
challenges to the implementation of work aligned with the project is the inadequate
availability of opportunities for people with the right qualifications, skills,
knowledge and experience. There is also the issue of vacancies at qualified
technical level posts due to educated and qualified people not residing in the
islands, as more than one third of the population reside in Malé. It is therefore
recommended that efforts should be taken to put in place the required complements
in the implementation of the project work areas and their own livelihood.
222. What is almost non-existent in terms of individual level capacity is the individual’s capability of setting up broader policy objectives, strategies in the medium to long
term and develop plans to deal with livelihood issues at a local level. The
assessment shows that this has been dealt in the past by recruiting external experts;
but this approach is often costly and short-term fix for the issue.
223. Another key area that was of individual level capacity that had serious shortage in
the region was the personnel with the analytical skills to identify problem areas and
deal with the problem areas through creative localized solutions. The current
practice of referrals to the central government of any developmental issue has
meant that this capacity has never been developed or established at this level.
52
Furthermore, this has driven KLC to merely providing assistance to external
experts in establishing interventions in local level thus limiting the opportunity to
develop this capacity at and institutional and individual level.
Figure 13: Findings from the survey
238, 60%
161, 40%
Gender of Respondents
Male Female
286221
113178
A r e y o u f r o m K u l h u d h u f u s h i ? D o y o u l i v e i n k u l h u d h u f u s h i ?
Residents of Kulhudhuf fushi
Yes No
178, 45%
164, 41%
24, 6%
6, 1%
27, 7%
221, 55%
Number & Frequency of Usage of Kulhudhuffushi
Harbour
No 1 -2 times 3 – 5 times 5 – 8 times More than 8 times
53
Source: CDTA Team
6.6.2 Gender issues
224. Due to the religious and cultural system of stereotyping women to be homemakers
and limited opportunities for women to work outside from home for long hours due
to the responsibility for child-rearing and domestic work on them, the number of
women working in transport industry is very few. Since, Kulhudhuffushi is a major
transportation hub of the North region, many women from Kulhudhuffushi are
indirectly working in the transport industry in aspects that they could manage from
their home. Many women cater for the crew and passengers (in transit and visiting
both) by selling homemade Maldivian delicacies such as short-eats and Haalu folhi
(a traditional dried snack made from rice flour only made is Kulhudhuffushi).
225. There is also the issue of high number of students who complete secondary
schooling and not opt for high secondary education due to the fact higher secondary
education not been state sponsored. Thus, there is a competition for jobs and
employers hire females for a low salary mainly because females are more
1044
65
211177
156
D o y o u l a c k s k i l l s ? D o y o u l a c k a n y e q u i p m e n t o r
f a c i l i t i e s ?
D o y o u l a c k f i n a n c e o r a c c e s s
t o f i n a n c e ?
What do you Lack for Addit ional Live l ihood Act iv i t ies?
Yes No
99 108
2748 39
3
122 113
194173 182
218
Dif f icult ies Faced by Respondents
Yes No
54
committed and reliable. This issue was raised during focus group meetings held
with Women’s Development Committee. Figure 14: Gender equality perception
Source: CDTA Team
Figure 15: Perception on gender job/income opportunities
Source: CDTA Team
187
216
34
5
A r e m e n a n d w o m e n p a i d e q u a l l y i n t h i s
i s l a n d s ?
S h o u l d m e n a n d w o m e b e p a i d e q u a l l y f o r
s i m i l a r j o b s ?
Yes No
168, 76%
25, 11%
28, 13%53, 24%
No Men Women
55
7. SME AND BUSINESS OPPORTUNITIES
7.1 The Commercial Environment of Kulhudhuffushi 226. The status of Kulhudhuffushi as the default commercial and logistical hub has
been well established for several years. However, a number physical and
institutional bottlenecks continue to hamper the needs of Small and Medium
Enterprises (SMEs) especially with regard to the development of entrepreneurship
in Kulhudhuffushi.
227. Kulhudhuffushi is has unique competitive advantages in claiming to be the
commercial hub of the North.
- It has the largest population of the North with the population of the island as well
as the ‘floating population’ due to be connected to nearby 45 inhabited islands.
With its estimated population of over 8,000 inhabitants (2014 census) and with
the nearby islands, it may well be catering to a market of over 50,000. In fact,
Making Kulhudhuffushi a hub for the region has been one of the expressed goals
of the Government.
- Kulhuduffushi is also commercially important due to Hanimadhoo, an
international airport about 20 minutes by speed boat.
- Kulhuduffushi also has the Kulhudhuffushi Port Limited (KPL) which is an
international port. In addition, the local harbor is used for domestic freight and
passenger shipping, as well as by fishing vessels and other smaller boats.
- The farmers market in Kulhudhuffushi, which is held every Saturday is also a
well-established institution that facilitates much commercial and personal contacts
between Kulhuduffushi and satellite islands it serves.
- There is also an on-going initiative to have an airstrip in Kulhuduffushi, which is
set to bring tourism with guest houses and many other opportunities.
- Kulhuduffushi also has infrastructure facilities such as hospitals, schools, the
presence of the State Trading Organization (STO) supermarkets, and other goods
warehouses.
- There is also unallocated land in Kulhuduffushi which is already in high demand
for commercial activities.
228. The above shows some of the factors that makes the island a northern hub for
commercial enterprises and SME development.
56
7.2 Overview of SME Development 229. According to the SME Mapping Survey (SMEMS) conducted in 2010 in several
islands including Kulhuduffushi by the Ministry of Economic Development
(MED) in collaboration with UNDP, the main three obstacles to SME
development (as a percentage of response) were:
- lack of funds (identified by 61% of respondents)
- space limitations (identified by 45% of respondents)
- lack of support services (identified by 40% of respondents)
- The lack of information about markets and transport issues were also identified as
bottlenecks by over 20% of respondents.
Table 2: SME Mapping Survey 1
Major limitations to the progress of business as
identified by entrepreneurs
Total
Cases Response %
Lack of funds 733 61.4%
Limited space 542 45.4%
Lack of support services 479 40.2%
Limited stock 403 33.8%
Lack of market information 272 22.8%
Absence of business relationships 225 18.9%
Water supply and electricity problems 197 16.5%
Others 38 3.2%
No response 89 7.5%
Source: CDTA Team
230. Generally, the SME development addressees a variety of objectives. These includes
economic, social, industrial development and security objectives. The Government
has specific long term (1-5 years) goals and short terms goals (1-3 years) in SME
development plan, specified by the MED.
231. The classification for Micro, Small and Medium Enterprises (MSMEs) in the
context of SME Law is given below:
Table 3: SME Mapping Survey 2
Category Full time employees Annual Income/Turnover
Micro Enterprise
5 - 0
500,000 – 0
Small Enterprise 30 - 6 5,000,000 – 500,001
Medium Enterprise 100 - 31 20,000,000 – 5,000,001
Source: CDTA Team
57
7.3 Harbor Development and SME Survey
232. The Kulhudhuffushi Harbor Expansion Project has also identified obstacles to SME
development. In particular, the PPTA report emphasizes on the logistical
difficulties that result in the poor linkages between Islands and Kulhudhuffushi and
its neighboring islands. The report notes the ‘the resulting mismatch between the need to travel without an undue time penalty (unconstrained demand) and the
service offered (constrained supply) limits the frequency of travel’.
233. This situation has prompted the GoM to take active intervention to change the
status-quo. Currently, the MED is reviewing concession requirements and
arrangements for public maritime services between Kulhudhuffushi and
neighboring islands. It was found that demand is currently constrained by limited
harbor facilities, both in size and availability.
234. The report notes that any economic and business development plans would need an
integrated approach with linkages to the KPL harbor, the expansion of the local
port, and the future Kulhudhuffushi airport which has started the land reclamation
phase. The resulting business synergies coupled with the GoM plans for
Kulhudhuffushi will have multiplier effects on the developments of SMEs.
235. As harbor development is an integrated project, it will have cross cutting business
implications in other areas like tourism, fish processing, exports, construction,
infrastructure, transport, finance, training and technology. The harbor project report
has also identified specific projects in the area of business that would result directly
from the harbor expansion, namely:
- General store
- Food and beverage outlets
- Retail outlets
- Business offices
- Amenities
- Fish and vegetable markets and shops/offices to demonstrate potential for
income generation.
236. A global employment and SME survey on employment, business environment and
CNA in Kulhudhuffushi was conducted during the 1st site visit to Kulhudhuffushi
by the CDTA team, back in October 2017. Aside from individual workers, various
types, sizes, and segments of entrepreneurs were covered by the survey including
key businesses in fish processing, wholesale trading, and business construction. A
questionnaire was developed and validated prior to the visit to gauge multiple
aspects of the business environment.
58
237. For the employment part of the survey, 400 participants have been interviewed with
70% of the interviewees indicating that they are from Kulhudhuffushi and 55%
indicating that they are currently reside permanently in the island. In terms of
purpose of travel to-from Kulhudhuffushi, the large majority has identified farming
and trade of produce as their primary purpose. This maybe partly due to the fact
that the survey was undertaken on a Saturday when an open farmers’ market is held.
238. About 36% of the respondents claimed that faming and selling produce as the
reason for travel. 20% of the respondents claimed to be either boat owners or boat
crews. 14% identified themselves as fisherman and 11% as general businessmen.
Figure 16: Employment and Harbor Use
Source: CDTA Team
3%1%4%1%
41%
30%
20%
Occupation of Respondents
Fishermen
Farmer
Businessman
Boat owner
Civil servant /private firm
Unemployed
Other
52
18
7
2
0 10 20 30 40 50 60
Less than MVR 2,500
Less than MVR 5,000
Less than MVR 10,000
Less than MVR 15,000
Monthly Income
1%
29%
8%
47%
0%
15%
Use of Harbor
General cargo
Leisure activities
Fishing
Ferry – passenger
Ferry – freight/cargo
Other
59
239. From the overall survey, 60% respondents reported their employment status, 19%
claimed to be unemployed, and 21% indicated that they have no employment status.
Among the latter, 90% were women and young people. Most those reporting as
being professionals are either civil servants or those working in private sector. In
terms of earnings, 12% reported that they had no marketable skills with income of
less than 2,500 MVR per month.
240. In relation to the harbor usage, most respondents were not specific about the actual
purpose of the usage. This is likely due to the fact that they are not direct
commercial users of the harbor. It is also noted that that a considerable number
reported using the harbor for leisure activities such as recreational fishing,
windsurfing and water sports. This may be an important function of the harbor with
the future expansion of tourism, possibly enhanced with the construction of the
airport.
241. Among SME harbor users, the major bottleneck towards solutions was identified
as the lack of finance. Over 40% reported the need to access financial resources.
Access to finance stands out as an issue to be addressed as compared to the
perception of other factors such as facilities and training that would potentially
hinder the development of business. Only 10 people replied the lack of skills as
their main impediment while a large majority of people (44%) did not consider the
lack of facilities is the main issue for business development of Kulhudhuffushi.
However, 48% people believed that the harbor expansion can improve business
opportunities.
242. Among the potential opportunities include direct jobs, small businesses like shops,
restaurants, import/export, tailoring, bakery, guest house, food business, selling of
ice and ice plants, export of local foods, handicraft, workshops, electrical,
refrigeration and maintenance work. Also, a large majority (48%) believed that
they will personally benefit from the harbor development work.
Figure 17: Types of resources or assistant needed by number of respondents
Source: CDTA Team
0
20
40
60
80
100
120
140
Finance Technical Man power Administrative Land Other
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243. These results are quite consistent with the discussions the survey team had with
KLC and the Atoll Council as well as prominent businessmen. While 15% of the
respondents cited the need for technical know-how, 7% also acknowledge that
manpower is a problem. Thus, when technical needs are combined with manpower
needs, we assume that the about 22% of the assistance needs falls within training
and skills development area.
7.4 SME Harbor Initiatives and Recommendation 244. This survey as well as the one conducted previously by the MED identified broadly
similar issues, of which the most prominent is the lack of access to capital. In the
MED’s survey, more than 60% of the entrepreneurs have identified lack of funds as the main problem for business expansion and investments on new business
ventures.
245. While adequate land seems to be available near the harbor area, since a large part
of the island has been reclaimed, such land has not been used for a long time.
Although more land is demanded by SMEs ad businesses, the system of land
allocation does not seem to be transparent nor streamlined for it to be utilized for
meaningful commercial purposes. KLC, in their respective views, need more
authority from central Government to rent out land at least on a temporary basis.
246. Access to commercial land also hampers the financing of business as it is the main
collateral accepted by the Bank of Maldives Kulhudhuffushi branch, a key
organization that plays an instrumental role in business development in the island.
247. Land issue also affects the long-term planning as well as entrepreneurship
development. A system of land allocation, for both large and small enterprises can
incentivize many activities and address several issues that impede commercial
activities related to the harbor.
248. Another important limitation identified from the surveys is lack of support services.
When asked about the priority of support services, 74% of respondents have
identified the need for training and development as the stimulus for the growth of
SMEs. Training needs includes marketing information and marketing linkages such
as access to export markets. This is particularly the case for harbor related
businesses.
249. It has to be noted that that the Kulhudhuffushi Business Center (KBC) in
Kulhudhuffushi has been quite active in capacity building, data management, and
business training. However, as outlined by KBC managers, there is a real need to
develop and deliver training modules in harbor management, logistics, and
distribution.
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250. The problem of weak institutional capacity has also been highlighted throughout
the exercise. Most of these challenges are cross cutting issues of weak
organizational structures and manpower. The KBC provides a number of training
programs in Kulhudhuffushi and nearby islands on a regular basis. However, most
of KBC activities are focused on training and business planning.
251. Among other support services, the existing organizations in Kulhudhuffushi (such
as the Bank of Maldives, Maldives Customs’ Services, KPL, the Inland Revenue
office, and the University Campus, together with KLC, can all participate in a
regular forum to identify the difficulties and exchange ideas. The KBC can also
play an active facilitating role.
252. A regular business forum can also help the existing businesses and entrepreneurs
to learn from each other and provide a coordinated input into the Government
policy in issues such as land allocation and development of harbor related
businesses.
253. At the time of this CDTA, the GoM formally announced the building of an airstrip
in Kulhudhuffushi. In terms of business development this initiative is also expected
to complement the harbor related businesses. The ease of movement, is expected
to create new economic activities in Kulhudhuffushi such as guest house tourism,
which will increase both the volume and the quality of goods and services. Imports
as well as export of traditional crafts and foods may increase as a result making a
new set of viable businesses.
254. Based on the above assessment, bespoke training modules were developed and
delivered in close coordination with KBC covering the areas of trade finance,
logistics and distribution, and port-related business marketing.
255. Out of the feedback obtained from meeting with businesses and participants to the
training modules, it has also been noted that school leavers with entrepreneurial
interest have been involved in some form of low cost e-business at a smaller scale.
As a result, introductory start-up and e-business modules were also included.
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8. CAPACITY DEVELOPMENT PROGRAM AND DELIVERY
256. The previous chapters have focused on a situational assessment and an
identification of capacity gaps and needs across the various components of this
CDTA namely the followings: institutional setting and organizational structure,
asset maintenance and financial management, operational and management
processes, safety procedures and requirements, income generation and livelihood
opportunities, and SME development and initiatives. The previous chapters also
provide high-level recommendations, reference toolkits and work systems to
address the problems and issues identified at the level of each CDTA component.
257. Based on the above, a program of capacity building and institutional development
has been designed, developed and implemented by the CDTA team in coordination
with various project stakeholders as well as relevant 3rd parties. Figure 20 outlines
the process of capacity development and delivery for this project.
Figure 18: Process of CDTA capacity development and delivery
Source: CDTA Team
258. Several capacity building tools and programs have been designed and developed
and, correspondingly, various modes of delivery have been used, including:
- Training and technical short courses,
- Special seminars and workshops,
- Institutional development and mentoring,
- Procedural implementation and drills
Dec 2017-Mar 2018
Nov-Dec 2017
Aug-Nov 2017
Situtional Assessment and Capacity Needs
• Project knowledge
• Expert analysis
• Surveys & interviews
• Needs & skills gaps
Recommendations and Sensitization
• Toolkits
• Procedural Systems
• Meetings
• Focal points
• Bulletins and Leaflets
• Social media
Capacity Building
Program Delivery
• CAAP
• Training
• Workshops
• Public campaigns
• Discussion and forums
• Institutional development
• Awareness & Opportunities
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- Focus group discussion,
- Industrial forums,
- Community Awareness and Participation Plans (CAPPs), and
- Public awareness campaigns.
259. Table 4 outlines the various components of the capacity development program
developed for the purpose of this CDTA. All planned programs have been delivered
successfully. Two planned programs on harbor safety procedures and one program
on harbor tariff user-charging remain to be scheduled and delivered.
Table 4: Capacity Building Programs for this CDTA
Title Mode of
delivery
Target
participants Location
Date(s) of
Delivery
Community Awareness on
Harbor Development Focus group Local community Kulhudhuffushi 14-16 Dec 2017
Harbor Opportunities for
Local Residents Workshop Local community Kulhudhuffushi 14-16 Dec 2017
Entrepreneurship and
Harbor Development Workshop
SMEs, local
businesses Kulhudhuffushi 16-19 Dec 2017
Harbor Logistics and
Distribution Workshop
SMEs, local
businesses Kulhudhuffushi 16-19 Dec 2017
E-business and trading Workshop SMEs, local
businesses Kulhudhuffushi 17-20 Dec 2017
Harbor Maintenance and
Asset Management
Training and
Toolkits MHI, PWS Malé 16-19 Jan 2018
Harbor Maintenance and
Asset Management
Training and
Toolkits KLC Kulhudhuffushi 29 Jan - 04 Feb
Harbor Maintenance and
Asset Management
Institutional
Development KLC Kulhudhuffushi 29 Jan - 04 Feb
Harbor Financial
Management
Toolkits and
Workshop KLC Kulhudhuffushi 29 Jan - 04 Feb
Harbor Operations and
Management
Training and
Workshop KLC Kulhudhuffushi
29 Jan - 04 Feb
2018
Harbor Operations and
Management
Institutional
Development KLC Kulhudhuffushi 29 Jan - 04 Feb
Harbor Safety Refresher
for Boat Drivers Training Local boat drivers Kulhudhuffushi 01-05 Feb 2018
Business Logistics and
Harbor Development
Business
Forum
Local businesses,
public agencies Kulhudhuffushi 01-02 Feb 2018
Harbor Safety Awareness Public
Campaign Harbor users Kulhudhuffushi 16-17 Mar 2018
Harbor Safety Procedures Training and
Toolkits KLC Kulhudhuffushi
24-25 April
2018
Harbor Development and
Tariff Charging Seminar
MHI, MED,
LGA, MFT Malé 23 April 2018
Harbor Safety Procedures Institutional
Development KLC, PWS, MHI
Kulhudhuffushi,
Malé
26 April – 6
May 2018
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260. A brief description of the delivered programs by project component is provided
below. Full program toolkits and materials can be found in Appendices 8 to 16.
8.1 Community Awareness and Livelihood Opportunities 261. To deliver the capacity building programs for the above components, a Community
Awareness and Participation Plan (CAPP) has been prepared to ensure widespread,
ongoing, and meaningful participation of the key stakeholders with a focus on the
poor and the vulnerable groups. The “reach” and “sustainability” of development initiatives are improved when all stakeholders, including the poor and the vulnerable
groups, have an opportunity to participate in shaping the programs and the voice of
the poor is heard at all levels of decision- making. Stakeholder analysis was
undertaken to ensure that relevant stakeholders are identified and included in the
participatory project design process.
262. This is particularly relevant in a high-density urban setting like Kulhudhuffushi
where disturbances related to construction activities are inevitable. Information
disclosure and public awareness are essential for maintaining public support and
mitigating grievances during this period. The stakeholders are to be made fully
aware of the intent, design, schedule, impacts, and overall benefits of the project.
The CAPP is a framework to help implement such activities.
Table 5: Activity Project Orientation and Livelihood
Target stakeholders:
- 40 community members in each 4-hour session
- Two sessions will be conducted in 2-4 days’ time.
Type of Participation:
- Information sharing
- Consultation
- Shared responsibility
- Shared decision-making
- Knowledge generation
Objectives:
- Introduce the project: highlighting its importance and benefits to the community
- Demonstrate the link between expanded harbor infrastructure and livelihood, income-
generation, good health, women’s empowerment, and development - Discuss roles and accountabilities of various government units; and relationships between
entities for project
- Discuss issues related to use of land acquisition, environmental clearances and permits
- Mitigate potential problems e.g., citizens’ use of government lands and property that will be acquired by the project
- Gather input, concerns, views and recommendations
Source: CDTA Team
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263. Appendices 8 and 9 outline the execution of the CAPP on 14-16 December 2017.
8.2 SME and Business Development 264. For the SME and business development components, bespoke training modules
were developed and delivered on 16-20 December 2017 covering the areas shown
below. The modules were designed based on the needs assessment conducted by the
CDTA team and the feedback from the KBC.
265. Appendix 10.1 through 10.5 shows the module slides delivered on:
- Start-up Module
- Trade Finance
- Logistics Distribution
- E-Business
- Port-related business marketing
266. Start-up Module: The objective of the start-up module is to give an overview of the
tasks of a new business. Specifically, it focused on taking a new business people and
entrepreneurs though a step by step process from concept to implementation.
Techniques of analyzing the external and internal conditions for strategizing a
business were explained. Other essential elements such as applying for credits and
loans, business communications and marketing were also introduced.
267. Trade Finance: this module focused on the commercial aspects of import-export and
trade documentation. These include Letter of Credit, Bill of Lading, Airway Bills,
Commercial Invoice, and other related business documentations. As direct import
and export is relatively new to the island, the participants were provided information
with some case studies and individual exercises.
268. Logistics Distribution: This module focused on the technical and efficiency aspects
of logistics services. Standardized systems for trade logistics and cargo sales such
as INCOTERMS (International Commercial Terms) were fully explained and group
exercises and discussions in the context of harbor trades have been conducted.
269. E-Business: The emerging area of e-business was introduced. Current trends,
popular software, e-catalogues, applications and payment systems were discussed.
e-business marketing with social media was also explained.
270. Port-related business marketing: In this module, the various businesses related to
harbor operations and management were reviewed along the mechanisms of
international cargo trading and shipments. As the Maldives has recently entered a
trade agreement with China, the potential and opportunities at the level of an island
community was fully explained. The participants were also given an introduction to
WTO (World Trade Organization) systems and preferential trade arrangements.
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271. Following a successful session delivered in December 2017, and on the request of
the KBC, a larger business forum session was planned and delivered on February 1-
2, 2018. The agenda of the forum included the CDTA team informing a 70+ large
business audience about the harbor’s expansion projects and delivering extracts of
the presentations shown in Appendix 8. Speeches and presentations were also made
by representatives of the invited stakeholder agencies, namely the Kulhudhuffushi
Customs, the local Branch of the Maldives National bank, and KPL. Appendix 11
shows the presentation made by the Customs representative.
8.3 Asset Maintenance and Financial Management 272. The asset maintenance and financial management capacity development program
used both institutional development and training mediums to improve harbor asset
maintenance and financial management procedures, human skills and capabilities of
both KLC and PWS while allowing alignment of KLC, MHI and MFT with respect
to maintenance costs and budget control.
273. The training program was conducted in the following sequence and as fully
described in Appendices 12.1-12.9 for asset maintenance as shown below
- Appendix 12.1: Asset Management Awareness
- Appendix 12.2: Asset Register
- Appendix 12.3: Cost Centre and Cost Codes
- Appendix 12.4: Work Orders
- Appendix 12.5: Inspections
- Appendix 12.6: Procedure developed for carrying out Monthly Inspection
using Work Order and Daily Observation
- Appendix 12.7: Accident Procedure
- Appendix 12.8: Skills / Competency Matrix
- Appendix 12.9: Presentation of samples of Safety Awareness
274. The institutional development program focused on working, experimenting and
interacting with KLC, PWS, MHI staff on asset maintenance and management
toolkits and procedures, including WOs, cost codes, ARIs, and how to use them in
the context of Kulhudhuffushi harbor asset management. For financial management,
Appendix 13 provides guidelines for financial management and internal control.
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8.4 Safety Operations and Procedures
275. The harbor safety capacity development program used toolkits, guidelines,
institutional development sessions, and training programs to help KLC and harbor
operators and users identify safety risks and hazards, implement safety action plans
and regulations, and incorporate and institutionalize safety systems and procedures.
276. The 1st set of capacity development programs for harbor safety aimed at developing
and institutionalizing guidelines and toolkits for harbor safety. The guidelines were
on safe berthing policy (section 5.3) and on safe harbor operations (section 5.4).
277. The 2nd set of capacity development programs for harbor safety targeted institutional
development at KCL with possible extension to other local harbor authorities in the
Maldives. The main deliverables of this work are the guidelines for harbor safety
activity plans and work procedures (Appendices 6 and 7) and their institutional
implementation during working sessions with KCL staff and employees.
278. The 3rd set of capacity development programs for harbor safety focused on updating
and upgrading harbor safety among boat harbor. To this end, a harbor safety
refresher course for local boat drivers was developed by the CDTA team in
association with the Maritime Academy of the Maldives (MAM) and delivered by
the latter to invited local boat drivers. Table 6 shows the course headline syllabus.
Table 6: Syllabus for the harbor safety refresher for boat drivers
Anchoring and Mooring
• Approaching the Anchorage • Preparing Anchor for Casting
• Cables
• Heaving up Procedure
• Anchor Procedures
• Mooring Procedure
• Berthing Procedure
Cargo Stowage and Handling
• Inspection of Holds • Cargo segregation/Separation
• Securing Cargoes
• Cargo Handling Safety • Deep Tank Cargoes
• Dangerous Goods
Port and Maritime Regulation
• Local Regulation
• Local Passenger Regulation
• Safety Regulation
Steering & Sailing Rules
Firefighting Safety
• Fire Prevention • Fire Detection
• Miscellaneous Fire-fighting
Equipment
• Ship Fire-fighting
Organization
Fire-fighting Methods
Cargo Documentation
• Responsibility of Cargo
• Cargo Safety Measures
• Arrival Document and
Procedures
• Health Regulation
• Traffic Facilitation
• Noting Protests
Passengers’ Safety
• Passengers Ship Rules • Space Requirement Protocol
• Carriage of Passengers
• Certification to be Carried
• National Regulation • Safety Trade Certification
• Certificate of Competency
First Aid
• Positioning of casualty
• The Unconscious Casualty • Resuscitation and Bleeding
• Management of Shock • Burns and Scalds
• Accidents due to Electricity
Keeping a Watch in Port
• Watch keeping in Anchor • Watch keeping in handling
• Preparing for Sea
• Buoyage System
• The “IALA” Buoyage system Applying buoyage system
Source: CDTA Team
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279. The harbor safety refresher for boat drivers was delivered over 4 days on 1-5
February 2018, split into a 4-hour evening session per day (the last session being a
feedback and wrap-up session). Appendix 14 shows full training materials (in local
language) while Appendix 15 reports on the course conduction and conclusion.
280. The 4th set of capacity development programs for harbor safety targeted harbor users
and the general public through the organization of a public harbor safety awareness
campaign. To this end, harbor safety infographics were developed by the CDTA
team, explained to KLC staff, and distributed with their coordination during a harbor
safety public campaign on 17 March 2018.
281. The purpose of the safety campaign is to remind harbor users of key safety principles
and procedures when using or passing through the harbor. to remind harbor users
Institutionally, the main objective is to have KLC’s staff undertake a similar exercise on a regular basis, taking into account past safety accidents and observed practices
in the harbor. The full infographics is included in Appendix 16 of this Report.
282. Appendix 17 is a collection of some photos taken during the delivery of the various
capacity programs described above.
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9. SUMMARY, CONCLUSIONS & RECOMMENDATIONS
9.1 CDTA Rationale and Objectives
283. Through an ADB grant, the Kulhudhuffushi local harbor is currently being extended
to construct a new passenger and cargo harbor with a view to creating additional
capacity to absorb increasing demand, providing greater access and connectivity
between Kulhudhuffushi and the atoll islands, and generating socio-economic
growth and livelihood opportunities for both individuals and businesses. The
construction of the harbor extension is expected to commence in mid or late 2018
with a target completion by end of 2019.
284. However, both previous studies and initial assessments have shown that the existing
harbor is operated with minimal or no supervision. This is evidenced by the absence
of a system for ship’s berthing and scheduling, the piecemeal loading/unloading and
embarking/ disembarking of cargo and passengers, poor asset control and
management, long delays in upkeep and maintenance schedules, serious gaps in
harbor safety, and a lack of qualified staff within KCL to properly administer and
manage the harbor.
285. At the same time, feedback from both residents and businesses, including SMEs,
show that there is little awareness of the harbor expansion and the business and the
socio-economic opportunities it will bring to its users, businesses, and the wider
community at large, both in Kulhudhuffushi and in neighboring islands.
286. It is within this context that this CDTA project was undertaken with a view to:
A. Strengthening the institutional capacity of KLC and PWS in harbor operation,
maintenance, and financial management.
B. Increasing the awareness of harbor safety and safety management systems
among both harbor agencies and harbor users notably boat drivers and
passengers.
C. Carrying out a feasibility and impact assessment study for developing and
implementing a harbor user-charging scheme in Kulhudhuffushi and other
harbors in the Maldives, and
D. Increasing the awareness of the Kulhudhuffushi residents, neighboring
islands’ visitors, and harbor users of the socio-economic, business, and
income-generating livelihood opportunities that will be brought about by the
harbor extension.
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9.2 Components and Approach of Capacity development Program
287. This Capacity Development Report addresses components A, B, and C shown
above. Work started with an assessment of capacity and training needs of both the
public agencies in charge of harbor management and the users of and businesses
related to the harbor.
288. A two-stage approach was carried out to undertake the capacity and training needs
assessment. First, a review of literature and secondary data has been carried out with
an emphasis on recent studies and reports including the UNDP study on safe
shelters, the PPTA report for the Kulhudhuffushi harbor extension, and the ADB
study on the Maldives Maritime Transport Plan. Then, an extensive and in-depth
analysis has been conducted through a combination of structured surveys,
stakeholder interviews, site visits, experts’ analysis, and focus group discussions.
289. The outcome of the above has been a comprehensive, well-structured, and targeted
capacity development program which has been designed, developed and delivered
over a 10-month period from August 2017 till May 2018.
290. Across the three components of this Report (asset maintenance and financial
management, harbor safety and operations, and SME and income-generating
livelihood opportunities), the CDTA program of capacity development has been
designed and implemented through seven tools of delivery as shown below. The full
list of the delivered capacity building program is shown in Table 4 of this Report.
- Guideline manuals and toolkits,
- Implementation action plans and drills,
- Institutional development and mentoring,
- Training courses and seminars,
- Industrial and business forums,
- Community awareness and participation plans, and
- Public awareness campaigns.
9.3 Impact of Capacity development Program
291. The capacity development program developed and delivered as part of this CDTA
was highly successful as supported by the high level of participation and
involvement of targeted public agencies and harbor users and stakeholders.
292. On the area of asset maintenance and financial management, the deliverables of the
capacity development program have provided best-practice industry manuals and
toolkits for harbor asset and financial management with a view to standardizing and
institutionalizing asset maintenance and financial control processes within and
across pubic agencies in charge of harbor operations and management.
71
293. Furthermore, the program on asset maintenance and financial management has
helped create a better interface between various agencies towards reducing or
eliminating redundancies, maximizing service life of harbor assets, and improving
financial controls for harbor management. In so doing, the capacity development
program can further be cascaded to other Local Councils towards a standardized
national system for asset and financial management in local harbors.
294. Another key benefit of the asset maintenance and management program was the
hands-on training and institutional development of key staff within PWS and KLC.
For KLC, the program has trained two selected KLC employees on key areas of
asset maintenance, in particular on processes and procedures for undertaking,
monitoring and reporting regular maintenance and inspection of harbor assets.
295. For the area of harbor operations and safety, the deliverables of the capacity
development program have developed targeted guidelines on harbor operational
procedures, safe berthing policy, and safety activity plans and work procedures. In
addition, implementation plans have been developed and tried in order to help KLC
incorporate and institutionalize safety processes and procedures into their harbor
management and operating systems.
296. Beyond KCL, tailored harbor safety awareness programs have been targeted at
harbor users and operators. On the one hand, a harbor safety refresher course for
was designed delivered to a targeted audience of boat drivers. On the other hand, a
public complain of harbor safety awareness was organized for the benefit of harbor
users, passengers, and the general public at large. Both programs have been over-
subscribed and highly successful in raising awareness among harbor operators and
users of the safe use and operation of harbor facilities and services.
297. To help implement and institutionalize the various components of harbor operations,
maintenance, safety, and financial management, guidelines on harbor’s institutional
and organizational set up have been developed in the context of Kulhudhuffushi
harbor and other local harbors in the Maldives. In particular, the guidelines provided
a blueprint for the establishment, organizational structure, resourcing and staffing
of an HMO within KLC. The HMO proposition and structure has been well received
by MHI and KCL who both agree that such structure should be established within
the next year and be readily available by the time the harbor expansion is complete.
298. In the areas of business and income-generating livelihood opportunities, the capacity
development program has enabled participants to share ideas and gain knowledge
of different livelihood opportunities and business prospects brought about harbor’s expansion. In particular, it has raised the awareness of the harbor and island
community about the harbor’s expansion and its derived business and livelihood opportunities. This is not just limited to SMEs and small businesses in the island but
also to micro-scale household ventures in Kulhudhuffushi and neighboring islands.
72
299. The level of awareness and interest generated by the capacity building program
among household and SME participants has been so overwhelming that the CDTA
team had to arrange for additional focus group discussions and training sessions.
There has also been a request by the KBC and the SME community in
Kulhudhuffushi for a business forum which was delivered jointly by the CDTA team
and key regulatory and financing institutions in Kulhudhuffushi namely the local
Customs’ office, the Bank of the Maldives, and STO.
9.4 Recommendations and Way Forward
300. This CDTA has developed and implemented a comprehensive, yet targeted capacity
development program, with a view to strengthening institutional capacity of harbor
agencies and raising awareness among harbor users and stakeholders. The
program’s manuals, toolkits, training modules, implementation plans, and institutional development actions should not only serve as a basis for KLC and
Kulhudhuffushi harbors, but can also be extended to other Local Councils and
domestic harbors in the Maldives.
301. To ensure effectiveness and continuity of the capacity development program beyond
the CDTA’s project timeline, a two-stage action plan has been recommended to both
KLC and MHI for approval and execution.
302. During the harbor’s construction period, the following actions should be undertaken:
- Carry out regular (monthly) harbor asset inspection and reporting.
- Carry out the harbor public safety awareness public campaign twice a year
(every 6 months).
- Organize another large CAAP in Kulhudhuffushi and two smaller CAAPs in
each of the two main neighboring islands.
303. After the completion of the harbor’s construction and prior to starting operation, the
HMO should have been established and functioning. Both MHI and KLC should
have approved and implemented the CDTA’s recommendations about the HMO’s required level of staffing and resources for a suitable and efficient management and
operation of the harbor expansion.
