Solomon Islands Community Benefits Sharing Project -- Phase 2

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The Community Benefit Sharing Pilot Project (CBSP) has been implemented by the Solomon Islands Government (SIG) from 2018 to 2023 with the support of the World Bank. The CBSP pilot aimed to establish a benefit sharing scheme between the Tina River Hydropower Development Project (TRHDP) and the project area communities. The benefits to be shared with these communities are based on an agreed-upon formula between SIG and the dam operator-- Tina Hydro Limited-- that will allocate a portion of the annual revenues from the power generated by the dam for an estimated 30 years after the hydropower plant comes into operation. By enabling the benefits of TRHDP to be shared more broadly with the Malango and Bahomea communities in Malango Ward who may not necessarily receive compensation and royalties from TRHDP, the pilot is expected to reduce the inequality between the members of the core land owning tribes and other residents. The pilot project thereby also served the purpose of sustaining broader community support for the hydropower facility and reducing the risk of disruption to ongoing dam construction.Construction on the TRHDP has been delayed and it is now expected that power-- and therefore revenues to support community benefits-- would not begin to be generated for at least four to five years. Therefore, with the CBSP pilot phase having closed in May 2023, SIG has requested that a phase 2 be prepared to continue to provide benefits to the CBSP target communities. Phase 2 of the Community Benefit Sharing Project (CBSP-2) will build on the pilot CBSP foundation and framework. The Project, like the pilot phase, will be implemented by a Project Management Unit (PMU) within the Ministry of Mines, Energy, and Rural Electrification (MMERE) and by Solomon Islands Electricity Authority (Solomon Power) for sub-component 2(c), rural electrification (see below). The Project will expand investments started under the pilot in water and electricity access, and include solar where feasible, to ensure that all community members benefit.The project will have four components as follows:-- Component 1: to operationalize the Community Benefits Sharing Fund (CBSF or “Fund”) by establishing the institutional arrangements for the Fund, building the capacity for the oversight and management of the Fund, supporting updates to the Fund Operation Manual and financing community subprojects supporting basic services. The component will consist of two sub-components: 1(a) institutional support to the Fund, and 1(b) small-scale rural infrastructure identified by the communities through a participatory process and screened and approved in accordance with the procedures of the Fund Operations Manual.-- Component 2: to improve access to and use of basic infrastructure and services for the project’s target communities. The component will consist of three sub-components: 2(a) rural water supply, 2(b) rural road improvements, and 2(c) rural electrification. Several infrastructure options have been pre-identified under the component and will be confirmed by communities and assessed for final feasibility during the early stages of implementation. Component 2 will include the financing of necessary preparatory activities, such as technical assessments, survey and design and the supervision of the implementation of component 2 civil works. The component would also further inform and test the design, and refine the operational procedures that will be used for component 1(b).-- Component 3: to enhance skills of CBSP community members to increase their knowledge and confidence to participate in the CBSF processes and local economic development activities, and to provide knowledge and skills aimed at income-generating opportunities in both the formal and informal sectors. This would be accomplished through three sub-components that address: 3(a) literacy and numeracy development; 3(b) short technical training focused on existing livelihood activities (such as in agriculture) or linked to work readiness and life-skills training ; and 3(c) employment support services to develop income generation strategies, apply for jobs, obtain references, and so on.-- Component 4: to support project management, monitoring and evaluation (M&E). As with the CBSP Pilot, a Project Management Unit (PMU) will continue to service CBSP-2 and will be co-located with the Project Office of TRHDP, which would continue to provide support on communications, environmental and social standards, gender, citizen engagement and grievance redress. Short-term technical assistance and support through consultant services for specific technical issues will be provided under each of the components described above (i.e., fund advisors, infrastructure engineer, water engineer, skills development specialist etc.). Component 4 will also finance external audits, M&E reports (mid-term and final project review), office equipment (vehicle, furniture, computers), and operating costs necessary to carry out all project-related activities.