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FIJI Post-Disaster Needs Assessment Based on damage, losses and identified needs, and in order to promote social, economic, cultural and environmental wellbeing over the next two years, key recovery and reconstruction needs can be classified around following themes. Production Recovery: Includes recovery of production levels in the productive sectors of agriculture, commerce and manufacturing, mining and tourism. Service Supply Access Recovery: Focused on recovery of supply and access to basic services of education, health, housing, transport, communications, water supply and sanitation, and electricity. In particular, the repairing and rebuilding of housing, and ensuring more resilient and liveable houses will be a priority, through a combination of government support, household savings, family remittances and local credit. Personal and Household Income Recovery: Focused on improving the livelihoods of those affected, particularly those who are vulnerable and below the poverty level. Reconstruction: Recovery of physical assets, including infrastructure and buildings in adherence to BBB principles. Repairing and strengthening public infrastructure and buildings, including educational facilities, will be a primary focus. The repairs, reconstruction and rehabilitation of key infrastructure, such as roads, bridges, seaports and airports, will enable the delivery of social and economic services to other affected communities and facilitate greater movement of people, goods and services. 5.2.1 Production Recovery In each of the productive sectors (i.e., agriculture, manufacturing, trade, tourism and mining), the values of goods that will not be obtained due to the disruption of production induced by the disaster have been estimated. While such production losses have in fact vanished from the economy and cannot be replaced, production recovery needs are the amounts of working capital that producers would require in order to restore pre-disaster production levels. While different in each productive sector, the need for working capital by the producers is a function of the value of annual losses sustained due to the disaster. That is, producers need a fraction of the value of their annual production as working capital. 134 In addition, consideration will be made of any additional and parallel needs involving the possible requirement to refinance or reschedule (under softer-term loan conditions) pre-disaster loans that producers may have had prior to the disaster, as well as, in some cases, the potential to provide temporary tax relief to individual and business producers after the disaster, by lowering taxation rates related to production and sales. 5.2.2 Service Supply and Access Recovery The value of recovery requirements for the supply of and access to social and infrastructure services (housing, education, health, transport, communications, electricity, and water and sanitation) includes two possible types: (i) recovery needs by service providers; and (ii) recovery needs by individual households. Service recovery requirements by provider enterprises (public or otherwise) refer to the amounts required to cover higher costs of service operation and provision which have arisen from the disaster. This involves expenditures above the normal operations budget of the service providers, which are estimated as higher costs of operation in the sectoral assessments within Chapter 3 of this PDNA. 135 These needs must be met as part of the recovery in order to ensure the providers avoid using their normal budget resources, since such uses would take away from undertaking normal activities. Service providers that do not obtain recovery resources to reinforce their financial position may elect to increase tariffs or rates charged to clients, thereby transferring the higher costs to consumers. In some cases, an alternative solution to this, in order not to affect further personal or family finances, may be the temporary introduction or increase of government subsidies for the services in question. Service recovery requirements at the personal or household level may arise when the enterprise service providers decide to transfer higher operation costs to the consumers, which would cause an overall higher cost of living for the affected people and households, thereby leading to a lower quality of life. 134 As an example, farmers require about 18-25 percent of the value of the crop to use as working capital, depending on the specific crop and varieties. 135 Higher education fees, higher health care costs, temporary housing costs, higher transport costs, electricity and water supply are typical examples of these increased costs of operation in service provision. 120 Tropical Cyclone Winston, February 20, 2016
FIJI Post-Disaster Needs Assessment 5.2.3 Personal and Household Income Recovery The value of personal income recovery represents the amounts of income losses sustained by the affected labour force across all affected sectors of economic activity, formal or informal, as a result of the disaster. These amounts may be used to define the scope and financial requirements of special “cash-for-work” schemes that may be part of reconstruction. Consideration will be given to programmes that assist those people and households that would otherwise face income decline, with special reference to those falling below the poverty level threshold. The cost of such assistance programmes, including cash-for-work programmes and income-diversification assistance, represents the needs for personal income recovery. 5.2.4 Reconstruction The value of reconstruction requirements (also known as physical recovery) has been obtained by estimating the value of damage for all sectors, and incorporating additional costs that would be required to strengthen resilience, through improved design and construction standards, or if required the relocation of strategic activities to safer geographical areas where disaster risk is much lower. Table 76: Recovery and Reconstruction Needs by Sector Recovery Reconstruction Resilience Total Productive Sectors 94.1 173.6 267.7 Agriculture 65.3 96.1 161.4 Commerce and Manufacturing 17.8 43.5 61.3 Tourism 5.0 29.0 34.0 Mining 6.0 5.0 11.0 Social Sectors 12.4 1,261.7 1,274.1 Education 385.9 385.9 Health 12.1 18.8 30.9 Housing 0.3 857.0 857.3 Infrastructure Sectors 15.3 250.7 18.8 284.8 Transport 3.2 174.7 177.9 Water and Sanitation 3.6 20.7 24.3 Electricity 2.1 25.9 5.8 33.8 Communications 6.4 29.4 13.0 48.8 Cross-Cutting Issues 63.0 27.4 12.0 99.7 Environment 60.8 13.1 73.9 Gender 1.6 0.4 2.0 Culture and Heritage 0.6 8.5 9.1 Disaster Risk Management 2.7 12.0 14.7 ELSP 31.5 31.5 Total 216.3 1,713.4 30.8 1,957.8 Source: Estimations by Assessment Team. Note: A detailed breakdown of needs is included in Annex 2. Tropical Cyclone Winston, February 20, 2016 121
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