EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf
EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf
EAP - The Pacific Infrastructure Challenge - World Bank (2006).pdf
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Vanuatu 88<br />
Ports<br />
<strong>The</strong> Department of Ports and Harbors is responsible for management and operation of the<br />
Port Vila and Santo Ports. It is also responsible for shipping and ports administration.<br />
Legislation, control of shipping, safety inspections and surveys are the responsibility of the<br />
Vanuatu Maritime Authority which was established in 1999. This was a major departure<br />
from traditional government policy, and has resulted in improved regulation and safety 89 .<br />
<strong>The</strong> Vanuatu <strong>Infrastructure</strong> Masterplan (2002) notes that the Department of Ports and<br />
Harbors is understaffed and in need of strengthening, but that it is unlikely “that any<br />
strengthening of the current institution will take place” due to a lack of Government and<br />
donor funds.<br />
BoxA.10: Vanuatu Maritime Services: Private Sector Involvement and Accountability in Shipping<br />
Vanuatu Maritime Services is a profit-making venture with headquarters in Port Vila but<br />
operating from a New York branch under contract to the Vanuatu Maritime Authority,<br />
which administers the licensing of vessels to carry the Vanuatu flag. <strong>The</strong> reason that owners<br />
find the Vanuatu flag desirable is because the country is known for its safety standards and<br />
ships over 20 years old do not get registered. Because of this, Vanuatu flagged vessels are<br />
less likely to be detained for inspection in foreign ports.<br />
This arrangement has been lucrative for both Vanuatu and the private company. <strong>The</strong><br />
annual income earned by Vanuatu since operations began, and passed over in monthly<br />
installments by Vanuatu Maritime Services, has increased from around $US450,000 to<br />
$720,000 per annum.<br />
This success has not occurred without controversy. <strong>The</strong> dearth of roles for Ni-Vanuatu in<br />
the company and concerns about the division of profits has resulted in political debate. In<br />
2002, the Auditor General tracked the monies received by Vanuatu Maritime Services and<br />
paid to the Vanuatu Maritime Authority and prepared a report which confirmed that all<br />
monies remitted by Vanuatu Maritime Services have been received by the Maritime<br />
Participation and Investigation Fund (MPIF), but that some of the monies spent by the<br />
MPIF may not have been disbursed in accordance with Maritime Regulation.<br />
<strong>The</strong> report concluded that there was a high level of control of banking, collection and<br />
revenue recording within the private company, but that there is less clarity as to how these<br />
funds are disbursed by the authorities within Vanuatu. For example, by law MPIF is<br />
required to spend a proportion of monies received from Vanuatu Maritime Services on<br />
supporting the training of Ni-Vanuatu through helping to fund the Vanuatu Maritime<br />
College in Santo and it is unclear as to whether or not this requirement is consistently met.<br />
This highlights the importance of transparency and accountability in the application of<br />
monies received by these institutions in order to safeguard the intended benefits for all.<br />
Source: “Vanuatu International Shipping Registry: High Water Mark” Port Vila Presse, 15 th<br />
December 2003, “Auditor General clears Vanuatu Maritime Services” Port Vila Presse, 7 th<br />
July 2003 and Castalia Research<br />
88<br />
Sources: “Vanuatu <strong>Infrastructure</strong> Masterplan” Republic of Vanuatu, 2002, “Vanuatu: Economic<br />
Performance and <strong>Challenge</strong>s Ahead” ADB <strong>Pacific</strong> Studies Series, 2002 and “Santo Port Project Performance<br />
Audit Report” ADB, May 2002<br />
89 “Regulation and maritime safety has improved with the establishment of the Vanuatu Maritime Authority”<br />
pp266 “Vanuatu: Economic Performance and <strong>Challenge</strong>s Ahead” ADB <strong>Pacific</strong> Studies Series, 2002<br />
137