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Involuntary Resettlement and Environment Safeguard Closure Report July, 2013 COO: L 2472/2473/2739 & G 0249 - Avatiu Port Development Project Prepared by Cook Islands Port Authority for the Government of the Cook Islands and the Asian Development Bank This involuntary resettlement and environment safeguard closure report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

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Involuntary Resettlement and Environment Safeguard Closure Report July, 2013

COO: L 2472/2473/2739 & G 0249 - Avatiu Port Development Project

Prepared by Cook Islands Port Authority for the Government of the Cook Islands and the Asian Development Bank

This involuntary resettlement and environment safeguard closure report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB's Board of Directors, Management, or staff, and may be preliminary in nature.

In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

PORTS AUTHORITY PO Box 84, Rarotonga, Cook Islands Phone (682) 21 921 Facsimile (682) 21 191

Avatiu Port Development Project

(Loan 2472/2473/2739 - COO & Grant 0249 - COO)

Involuntary Resettlement and Environment Closure Report

July 2013

PORTS AUTHORITY PO Box 84, Rarotonga, Cook Islands Phone (682) 21 921 Facsimile (682) 21 191

TABLE OF CONTENTS

Page Numbers

EXECUTIVE SUMMARY................................................................................................... A. INTRODUCTION…………………………………………………………………………........ B. PROJECT DESCRIPTION................................................................................... ..... C. ENVIRONMENT SAFEGUARD REQUIREMENTS…………………………………........ D. INVOLUNTARY RESETTLEMENT REQUIREMENTS................................................................. E. CONSULTATIONS AND GRIEVANCE PROCEDURES............................................ F. RESOURCES AND FINANCING.................................................................................................. G. MONITORING AND EVALUATION........................................................................... H. PHOTOS OF PROJECT SITE………………………………………………………..............

PORTS AUTHORITY PO Box 84, Rarotonga, Cook Islands Phone (682) 21 921 Facsimile (682) 21 191

EXECUTIVE SUMMARY

This involuntary resettlement and environment closure report has been prepared in accordance with laws of the Government of the Cook Islands and the regulations and related policies of the Asian Development Bank (hereafter referred to as (ADB).

The project is to redevelop the principal international port for the Cook Islands to result in changes to shipping, with larger ships enabled to deliver larger cargoes. The cost savings from these changes are expected to flow through to the national economy. The impact envisaged for the project in this context is continued economic growth and improved well-being of the population and the outcome will be a secure and efficient port infrastructure in Rarotonga with constraints and safety risks removed.

This report provides the final compilation of effects on involuntary land resettlement and the environment (if any) to accommodate the physical works of port development. This serves to document involuntary resettlement and environmental reporting requirements to meet safeguard compliance for the project.

PORTS AUTHORITY PO Box 84, Rarotonga, Cook Islands Phone (682) 21 921 Facsimile (682) 21 191

A. INTRODUCTION 1. The Port of Avatiu is the gateway to the Cook Islands for seaborne imports and exports. Located on the island of Rarotonga, it is the principal international port for the Cook Islands, as well as the transshipment port for cargo to the second most populated island of Aitutaki and the less populated outer islands. Before this project, the port was previously restricted to ships with a length less than 90m and a maximum draft of 6m. The existing infrastructure was in a poor condition and rapidly degrading. The port is in the only significant harbour in Rarotonga, and is exposed to seas from the north, including hurricane generated waves. 2. The port was initially developed during the 1980s in two stages with construction of a concrete wharf, apron and storage sheds. Prior to the initial development, cargo was brought ashore in lighters from schooners or smaller coastal traders that could anchor in either of the narrow natural harbours at Avatiu or nearby Avarua or from larger ships that anchored outside the harbours. 3. The infrastructure had had limited maintenance since installation. Further, the limitations on the ship size that could enter the port were the smallest of the ports in the region, limiting the size of ships that would operate on regular services that included Rarotonga. Following initial scoping studies and an initial environmental examination, the Asian Development Bank (ADB) provided a loan to the Government of the Cook Islands for the Avatiu Port Development project. Further funding was provided by the Cook Islands Government, and the Project was administered by the Cook Islands Ports Authority (CIPA) on behalf of the Government. 4. The design and project management of the project was awarded to Beca International consultants and later the construction was awarded to McConnell Dowell Constructors Ltd, with dredging subcontractor Heron Construction Ltd. The contract with Beca International was finalized in December 2009 and they immediately commenced work towards finalizing detailed engineering design and tendering for civil contractor. By December 2010 McConnell Dowell Constructors Limited was signed. The CW contractor started mobilising into Rarotonga in March 2011 and started with the initial phases of the scheduled civil works. 5. The development has resulted in a harbour with 8m draft in which a 120m ship can turn and a 270m continuous berth face with a widened approach channel that can be accessed by cruise ships up to 200m in length. Landside improvements include additional paved storage yards, new cargo sheds and lighting that allows cargo to be handled at night. The design has also provided a level of protection from sea-level rise. 6. The Avatiu Port Development Project was approved by the ADB Board on 20 November 2008 and became effective on 10 September 2009. The Project was tasked with rehabilitating and expanding the capacity of Avatiu port. It comprised (i) widening the harbor entrance, (ii) dredging to increase the depth alongside the wharf plus dredging and enlarging the ship turning area, and (iii) reconstructing and realigning the quay and repairing the adjacent wharf deck.

PORTS AUTHORITY PO Box 84, Rarotonga, Cook Islands Phone (682) 21 921 Facsimile (682) 21 191

B. PROJECT DESCRIPTION 7. Site Conditions. The site is typical of many tropical port sites, comprising a coral reef shelf which has been incised by the Avatiu stream. The original wharf alignment had followed the general edge of the reef shelf which had been defined by the stream, as described above. Although the catchment area for the stream was relatively small, the steep basalt slopes and tropical rainfall resulted in significant outflows during storm conditions, and there were informal reports of gravel deposits in the harbour bed which had been encountered during historical dredging. 8. The new wharf alignment was thus tasked with cutting through the reef shelf for the northern half of the new alignment, it was also necessary to excavate the fill that had been used to create the yard area adjacent to the northern berth. This fill was shown to be variable and included demolition concrete. The coral deposits were, as expected, highly variable. At the northern end, 5m of massive coral and re-cemented coral gravel and cobbles were encountered while at the southern end uncemented gravels and cobbles were encountered over the top 5m. 9. In the extreme south end alluvial deposits from the stream that had led to the incision through the reef were encountered extending below the toe of the wharf piles. 10. The Cook Islands, and especially those in the southern group, are frequently affected by cyclones. Since 1820 at least 91 tropical cyclones have impacted the inhabitants of the Cook Islands in some way, and these generate significant open ocean waves in the area. Recent cyclones causing significant damage include Sally (1987), Meena (2005) and Pat (2010). Meena was one of a series of five cyclones that crossed the Cook Islands in a six week period. 11. The harbour entrance is exposed to the north and water depths increase dramatically from the outer edge of the shelf, with seabed slopes of up to 30 degrees extending to a depth of 1,000 metres only 3 km offshore. A number of studies have detected offshore significant wave heights in excess of 10m during cyclone events. These events also result in significant tidal set-up on the reef shelf and the increased water depth allows more energy to cross the reef shelf. 12. All the Pacific nations are concerned about the effects of global warming. The original berths had been designed with a wharf edge level that was suitable for the smaller inter-island shipping that used the port and a cross-fall of 1:50 to provide drainage. As a consequence, during periods of significant swells – not necessarily local storms – waves would wash onto the deck and across the full width of the apron and into the cargo sheds. 13. Wharf Design. The potential wave climate within the harbour basin meant an open piled wharf structure was unfeasible due to the uplift loads from wave action. The adopted solution is a tied sheetpile wall. Due to the height of the wall, a tie was required. The installation of conventional ties at a lower level would have required either horizontal drilling through the coral or trenching through it. It was found that using the heavy concrete pavement slab as a high level

PORTS AUTHORITY PO Box 84, Rarotonga, Cook Islands Phone (682) 21 921 Facsimile (682) 21 191

tie with increased reinforcing was more cost effective. The heavy rebar is in the centre of the slabs and is connected to two drop beams. These beams are not as deep as would be required for conventional anchors. Some of the anchor reaction load is generated by friction from the dead load of the slab on the subgrade. 14. To provide a 50 year design life for the sheetpile wall, the concrete edge beam was extended to below low water level on both sides of the wall. Below that, a corrosion allowance in accordance with Australian standards was allowed in selection of the member thicknesses. 15. The requirements for the harbour basin were to provide a depth of 8m and a turning circle of 150m diameter. Once a detailed survey of the site was completed, it was found that the turning circle had to be limited to 135m in diameter. Further, the existing Lighter Berth on the west side of the basin is a sheetpile structure and construction records showed that many of the sheetpiles had not been driven to design depth. Thus it was concluded that excavating to RL -8m in the west side of the turning circle would risk undermining this structure. As Avatiu is an import port, ships leave with less draft than on arrival, and are also generally high at the bow. As ships enter leave the port by turning their bows to the west so that their bow swings over the west side of the turning circle. 16. Thus it was decided that the east side of the turning circle could be dredged to RL -7 metres. This had a secondary advantage or decreasing the dredge volume. Dredging was carried out with a backhoe dredge and the material was trucked to two stockpile areas, one used to extend the adjacent public market and the other to the temporaray Panama dump site. 17. In the southwest corner the port, two derelict buildings and a disused slipway was demolished to allow dredging to complete the turning circle in this area. Slope protection was required in this area and the wave analysis discussed above had shown that the rock wall would have to be designed to be overtopped. In fact, the overtopping would result in water depths of over 1m on the adjoining main road. This is supported by evidence collected during recent cyclones such as Sally, Pat and Meena, 18. A conventional rock armour wall was thus designed, with the larger rock size selected to match the material that could be won on the island. The contractor used the existing basalt quarry on the island to manufacture concrete aggregates for the project and expected that they would be able to generate the armour rock during the process. Despite winning rock from three different faces in the quarry, they found that very few pieces of the required sizes were generated. They then reverted to the source that had been used traditionally on the island excavating rocks that were located in farmland at the bottom of the rock slopes. This process had a secondary benefit of improving the farmland where the rocks were won. 19. With the larger shipping to use the upgraded facility, the wharf edge was raised a nominal 500mm, which has significantly reduced the wash issues. However, to provide some future proofing against the forecast 500mm of sea-level rise over the 50 years design life, the sheetpile wall was designed to allow the wharf edge and apron to be raised by up to 500mm without strengthening the wall. If this is carried out in the future, the berth depth will have been increased by the amount of sea-level rise.

PORTS AUTHORITY PO Box 84, Rarotonga, Cook Islands Phone (682) 21 921 Facsimile (682) 21 191

20. The ADB Report and Recommendation of the President to the Board of Directors identified the impact and outcome of the project as: The impact will be continued economic growth and improved well-being of the population (the disadvantaged in particular). The outcome will be a secure and efficient port infrastructure in Rarotonga with constraints and safety risks removed. 21. The scope of works as identified above thus included:

• Dredging of the harbour to 8m below chart datum, with a 150m turning circle. • Widening the harbour entrance by approximately 10m. • Demolition of the two existing berths and replacing them with a continuous quay wall

270m long. • Rehabilitation of the wharf deck back to 20m from the wharf face. • Demolition of the old slip and patrol boat wharf and facing the embankment with rip-rap. • Protecting the northern end of the quay by positioning rip-rap at the western end of the

breakwater. 22. The ADB Report nominated an implementation period of 37 months. The engineering commenced some 7 months later than planned. The main construction contract was awarded in December 2010, and, with careful management of the programme, especially issues of timing of some items of the works such as the dredging of the port basin, outside the summer cyclone season, construction of the main works was completed in August 2012, only four months later that the nominated programme. 23. Since that time, the following minor works were undertaken by local contractors. These additional works provide additional scope and value that have been possible as the project costs were within the original budget.

• Re-arrangement of the petroleum products pipe and hazardous materials area. • Rehabilitation of the southern wharf. • Relocation of the cargo storage sheds.

C. ENVIRONMENT SAFEGUARD REQUIREMENTS 24. The Project classified as Environmental Category B in accordance with ADB’s Environment Policy (2002) and the Environmental Assessment Guidelines (2003) has been carried out to date according to the initial environmental examination (IEE) in Supplementary Appendix B of the RRP, and as required by the Construction Environmental Management Plan (CEMP). Several environmental issues however were raised during project implementation. 25. Heron Constructions (marine dredging subcontractor) plant and equipment arrived at Avatiu on the 16th May 2012 but as previously advised was delayed by approximately a month from programme during the period due to Herons commitment on other projects. Marine dredging works commenced following mobilisation and setup of the equipment on 18th May 2012.

PORTS AUTHORITY PO Box 84, Rarotonga, Cook Islands Phone (682) 21 921 Facsimile (682) 21 191

26. Issues were encountered by the contractor relating to the transportation of dredged material leading to the discharge of salt water on the public road. The contractor altered his methodology to ensure wet material was not transported on the public roads which involved dewatering the hopper barges, double handling and drying of dredged materials as required. It is noted that the duration of the dredging works may vary significantly depending on the type of material being dredged and is expected to be between 8-12 weeks. Works associated with the entrance widening will also be significantly weather dependant. 27. Turbidity of the harbour and receiving environment. Monitoring of the harbour and receiving environment during the dredging works was being conducted including testing of turbidity daily and Total Suspended Solids (TSS) testing. Results to date indicated that TSS is acceptable and is below the normal limits used by the Ministry of Marine Resources (MMR) to define marine health. Monitoring continued in line with NES and project requirements but dredging is not expected to cause an environmental risk based on testing to date. 28. In addition to the standard project reporting all environmental incidents were advised to the Ministry of Transport (MOT) and National Environmental Service (NES) and they were also provided with the incident reports. D. INVOLUNTARY RESETTLEMENT REQUIREMENTS 29. Land Resettlement actions have complied with ADB’s Involuntary Resettlement Policy (1995) with a summary of the resettlement plan in Appendix 11 of the RRP and the complete short resettlement plan contained in Supplementary Annex D. 30. There were only two minor resettlement concerns for the Project and both cases were fully resolved. Sample details of relevant supporting documents are provided as annex 1 and 2. The first involved the temporary relocation of Taio Shipping Ltd whilst civil works commenced on refurbishing the current shed. 31. The second involved the Cook Islands Port Authority reaching a legal agreement with landowners to utilise 18,000m2 of the Panama Dump Site for the storage of surplus dredged materials. It is noted that while the Cook Islands Government had requested that all fill material is to go to the Market reclamation site, the area currently provided at the Market was insufficient to accept all the dredged material. An alternative site for stockpiling was required and Panama site was identified as suitable. 32. The project in this context was in need of additional storage areas and it was proposed to ‘gift’ material to the local Panama community. Community consultations were thus carried out particularly relating to the dredging and associated transport operation. Consultations included;

• Local community meetings. • Port Users consultation. • Distributing of information leaflets

PORTS AUTHORITY PO Box 84, Rarotonga, Cook Islands Phone (682) 21 921 Facsimile (682) 21 191

• Individual consultation with affected residents • Community leaders/elders meeting.

33. Dredged materials were then being transported and stored at the two sites of the Panama Dump and the Punanga Nui Market Reclamation Project sites. The latter is being carried out under Government directive and according to CIPA there are no issues as it is crown land. For the former, successful negotiations with landowners led to written and signed agreements on a 2 yearly basis. Dredged material in this context will be stockpiled for 2 years to a height of no more then 5 metres. It would then be gradually removed in the following 2 years for community uses and other similar purposes returning the land to its previous state. E. CONSULTATIONS AND GRIEVANCE PROCEDURES 34. Beca liaises directly with the Cook Islands Port Authority operational staff including the Operations and Asset manager and the Harbour Master regarding construction activities and the sequencing and extents of the construction works. Coordination between construction activities and port operations were on-going on a monthly basis. Meetings with port users and stakeholders were also held regularly. During this forum an update of the project works including key activities that will potentially affect the Port Authority and port users were outlined and discussed. 35. ADB requires that the borrower/client also establish and maintain a grievance redress mechanism to receive and facilitate resolution of affected peoples’ concerns and grievances about the borrower's/client's social and environmental performance at project level. The grievance redress mechanism should be scaled to the risks and impacts of the project. It should address affected people's concerns and complaints promptly, using an understandable and transparent process that is gender responsive, culturally appropriate, and readily accessible to all segments of the affected people.

38. The Cook Island Port Authority has mechanisms to address the grievances of the people affected. These are clearly noted in the Construction Environmental management Plan and reinforced by national systems of the National Environment Services. All complaints were received on site. They were addressed in compliance Cook Islands Environmental legislation and requirements ensuring that all environment grievances were taken care of on site. F. RESOURCES AND FINANCING

39. Initial ADB funding approved amounted to $15.5 million equivalent comprising of $8.6 million from Ordinary Capital Resources (L2472-COO) and $6.9 million from Asian Development Fund (L2473-COO) to finance 85.2% of the total cost including taxes and duties. The Government was to provide $2.7 million, or 14.8% of estimated total project investment cost of $18.2million. 40. At civil works contracting stage it was noted that the cost of the civil works had increased as a result of currency realignment and an underestimation of input prices. A supplementary

PORTS AUTHORITY PO Box 84, Rarotonga, Cook Islands Phone (682) 21 921 Facsimile (682) 21 191

loan was therefore required to meet the increased cost of the project. Additional ADB OCR funding of $4.70 million (supplementary L2739-COO approved on 24 March 2011), Climate Change Fund of $0.80 million (G0249 approved on 24 march 2011), and Government contribution of $0.94 million were secured to fulfill the financing gap and to place the revised total project investment cost at around $24.64 million.

41. This being a safeguard closure report, it does not include financial statements. However, details are enclosed in the financial reports submitted by the Cook Islands Port Authority to the ADB. G. MONITORING AND EVALUATION 42. The Cook Islands Port Authority working closely with Beca consultants monitored the implementation of the construction environmental management plan. This was accomplished in conjunction with monthly reporting in addition to other management reports separately on project implementation progress to Government and ADB. 43. Prior to any construction, the design of works, involuntary resettlement and environment impacts were all confirmed to avoid public grievances and disruptions to port services during the project phase. 44. Project work has been completed a n d this is the closure report for the project. The environment and involuntary resettlement safeguard reporting for this project is hereby closed.

PORTS AUTHORITY PO Box 84, Rarotonga, Cook Islands Phone (682) 21 921 Facsimile (682) 21 191

ANNEX 1 Vacate Notice

PORTS AUTHORITY PO Box 84. Rarotonga, Cook Islands Phone (682) 21921 Facsimile (682) 21191

20 April 2011

Mr Teremoana (Tapi) Taio Managing Director Taio Shipping Ltd Avatiu Wharf RAROTONGA

Kia Grana Tapi,

Re Avatiu Port Redevelopment; Relocation

Further to our discussions regarding this matter, I have met with Tim Arnold to see what can be done to formalize arrangements between us. Tim has appropriately drawn my attention to the fact that he acts for Taio Shipping from time to time, but has suggested that in all the circumstances you are unlikely to have an objection for him acting for the Ports Authority in this matter.

For now, I think we should confirm, in writing, by exchange of letters, the following;

a) Taio Shipping will give vacant possession of shed number 1 on or before 5 May 2011. We appreciate that it will be for the Ports Authority and its contractor to ensure that power is disconnected and other services terminated so demolition can safely commence.

b) The Authority's contractor MacDow, will then move to demolish shed number 1 in its entirety, with the exception of the existing "lean to".

c) Taio Shipping and the Ports Authority both accept that the lean to will require further structural strengthening if it is to remain as a "stand alone" structure. That work, together with any associated work needed to make the lean to a secure, enclosed, stand alone bUilding will be undertaken by Taio Shipping at its cost and expense in all things.

d) At such time as the lean to bUilding is to be demolished (the Authority and Taio Shipping both acknowledging it is a "temporary structure" that is to be used only until such time as a new, purpose bUilt, outer island shipping cargo and storage shed that is completed), then;

i) It will be demolished by Taio Shipping or a related company at its expense; and

ii) all demolition materials will be or become the property of Taio Shipping upon removal from the Ports Authority land.

e) The timing and procedures for demolition of the lean to shed shall not be finalized at this stage, but will be agreed between the Authority and Taio Shipping once the replacement shed is at an advanced stage of construction. Both parties agree to negotiate in good faith and if there is any dispute or disagreement on any aspect of that matter that will be referred to John Kenning who shall act as an arbitrator.

f) The Authority shall bear no responsibility either for the cost of converting the lean to into a safe, secure, stand alone bUilding nor shall it assume any risk or liability in respect of that bUilding, its safety, fitness for purpose, cyclone resistance or similar.

g) Without affecting the preceding paragraph, before the lean to may be used by Taio Shipping for any purpose, Taio Shipping shall deliver to the Authority a certificate from the bUilding controller of MOIP certifying that the lean to is constructed and completed in a manner that is compliant with all applicable Cook Islands building codes.

h) The Authority is committed, in principle, to the construction of a replacement shed. The details, specifications, and timetabling of that exercise have not yet been finalized, and it is not practical to do so at this time. However, the Authority recognizes that Taio Shipping and future inter island shipping operators as key stakeholders in outer island shipping operations and will consult with Taio Shipping on a regular basis as matters move forward.

i) On the strict understanding that Taio Shipping will liaise both with the authority and MacDow as to steps taken, the Authority confirms that Taio Shipping may make its own arrangements, at its own cost for any necessary relocation for power or telecommunications to the lean to building.

j) Subject to the above, the Authority confirms that existing arrangements as . to use and occupation of cargo shed number 1 will continue following its demolition, and apply instead, to the refurbished and upgraded lean to structure. Having said this, the Authority appreciates that this exercise will incur time and expense for Taio Shipping and that you may wish to revisit the issue of the current rental. I have no authority, myself, to negotiate that matter but would invite you to put proposals forward for consideration by the board at its next meeting - currently scheduled for 29 April 2011.

Assuming we can reach agreement on these issues I would propose taking a formal deed of lease to the board in respect of your tenure very shortly. The next board meeting is scheduled for the end of this month, and ideally we should move to finalize all these arrangements by that time. If you are in agreement with the terms above, could I invite you to counter sign this letter and return it to our office.

I look forward to working with you as a long - time Port user during this exciting period of the Avatiu ports development.

YOU'reIY ,

l\Jooroa (Bi . Gener a

r Taio Shipping agree to the above

PORTS AUTHORITY PO Box 84, Rarotonga, Cook Islands Phone (682) 21 921 Facsimile (682) 21 191

EIA Approval

NATIONAL ENVIRONMENT SERVICE TU'ANGA TAPOROPORO

COOK ISLANDS

7 April 2011

(l ~)~~)I ) Mr Nooroa Tou CEO, Cook Islands Ports Authority Avatiu RAROTONGA

Kia Orana

Re: DREDGE SPOIL STOCKPILING AT THE OLD PANAMA DUMP

Please be advised that the above project application has been considerE~d and approved by the Rarotonga Environment Authority on the 6 April 2011.

Please find attached the conditions outlined in the Project Permit notice, which will be monitored by the National Environment Service.

Should you require further clarification regarding your permit please feel free to contact Mr Vavia Tangatataia, Manager - Advisory & Compliance Division.

Yours sin:;erely

'J::£i~ DIRECTOR NATIONAL ENVIRONMENT SERVICE

PO Bo)( 371 ,Rarotonga, Cook Islands, Phone' (682) 21256/24256 Fax: (682) 22256 Email: [email protected],ck/ [email protected]

With offices in: Ailulaki Ph: 31256 Fax: 36683 • Atlu Ph: 33356 • Mltlaro Ph: 36356 • Penrhyn Ph: 42100

NATIONAL ENVIRONMENT SERVICE TU'ANGA TAPOROPORO

COOK ISLANDS

PROJECT PERMIT

Project Owner: Cook Islands Ports Authority

Issue Date: 6 April 2011

Project Title: Dredge Spoil S!:ockpiling at the old Panama Dump.

Project Address: Old Panama Dump (Kaikaveka 103E2 and 103E3, Arerenga 102A2, Taua 1028), Panama Tapere, Te-Au-O-Tonga District - RAROTONGA.

Project Description(s): The project involves:

• The Stockpiling of up to 45,000 cubic meters of dredged material from the Avatiu Harbour;

• Material to be spread as a thick cap over 10,000 square metres to provide a working surface;

• The stockpiles will be a maximum of 4metres in height; • Works to be undertaken between August and November of 2011, over an

8 week period; • Works to are proposed to be undert3ken from Monday to Saturday, LIp to

24 hours per day to enable stockpiling to be complete within an eight week period;

• Vehicles to transport material from the Port to the site, along Ara Tapu road, Cook Islands Steel road and Crashfire road to the stockpile site;

• Stockpile to be gradually removed as it is sold or gifted over a five to ten year period;

• Following the removal of the stockpile material the site will be returned to the landowners as a level gravel surface, allowing for a number of potential future uses of the land.

PERMIT: Pursuant to Section 36 of the Environment Act 2003, the Rarotonga Environment Authority has approved the application subject to the following conditions:

o Definitions

For the purposes of these conditions, the following definitions apply:

"Project Engineer" - Beca International Consultants Limited;

"Project Owner" means Cook Islands Ports Authority (CIPA);

"proposed work" means the work referred to in the Project Proposal above;

PO Box 371, Rarotonga. Cook Islands. Phone: (682) 21256/24256 Fax: (682) 22256 Email: [email protected]/ [email protected]

With offices In: Allutakl Ph: 31256 Fax: 36683 • Atiu Ph' 33356 • Mlllaro Ph: 36356 • Penrhyn Ph: 42100

"site" means the site where the Project is to be located, Old Panama Dump (Kaikaveka 103E2 and 103E3, Arerenga 102A2, Taua 1028), Panama Tapere, Te-Au-O-Tonga District - RAROTONGA.

o Conditions 1. That the Project Owner notifies the National Environment Service at

least 24 rlours before the proposed work is to commence on the site;

2. That the Project Engineer and Owner supervises the proposed work and submits to the National Environment Service within 10 days after the date the proposed work is completed, a report verifying the completion of the proposed work and verifying that all activities have been correctly complied with;

3. That the approval is for the proposed work only and if the Project Owner desire to deviate from or vary the proposed work, the approval of the Rarotonga Environment Authority must be obtained to such deviation or variation;

4. That the successful Contractor prepare a Construction Management Plan, Water Quality Monitoring Programme and a Health and Safety Plan to be submitted to the National Environment Service for approval prior to commencement of construction works authorized by this approval;

5. That all machinery shall be operated in a manner that ensures that spillage of fuel, oil and similar contaminants are prevented, particularly during refueling and machinery servicing and maintenance.

6. Refueling and lubrication activities shall be carried out away from any water body such that any spillage can be contained so it does not enter the coastal marine area, and wetlands;

7. The implementation of this approval shall include a regular progress report to NES, the Tribal leaders of Avatiu, Ruatonga, Panama and also the surrounding dwelling residents in the area. This report shall include information on compliance to the Construction Management Plan and Water Quality Monitoring Programme

This consent is valid for a period of 12 months from the issue date of this notice, and is not transferable.

I<~· ; Ian Karika Wilmott

Chairperson RAROTONGA ENVIRONMENT AUTHORITY