Introduction

This Factsheet outlines the current progress in advancing Sustainable Public Procurement (SusPP) in the Cook Islands based on a desk review. The review applies an analytical framework of six Pillars (or "building blocks") of SusPP systems.

The Framework is designed to make clear that countries do not need to follow a linear step-by-step path to build effective GPP systems. Rather it is important to examine local contexts and prioritize the Pillars with the most potential in the country. No matter where a country starts, a balanced approach to implementation calls for progress on all Pillars to some degree.

This Factsheet is organized as follows:

• "Country Overview" section with executive summary, indicative maturity rating, key achievements, potential pathways forward and timeline of key events related to advancing sustainable public procurement.
• "State of Play & Forward Looking Analysis" section that summarizes the research findings from the desk review for each Pillar theme.
• "Key Stakeholders Driving the Agenda" explores opportunities for ADB teams to open discussions with country counterparts and add value to the work of partners.

The Factsheet is intended to be a living document to promote knowledge sharing and support training activities at ADB. It will be revised and improved as new information is uncovered and advances are made. If you have new information, please contact ychu@adb.org.

The Cook Islands consists of 15 small islands (12 inhabited) scattered over an exclusive economic zone of close to two million square kilometers. The Cook Islands population is almost 15,000 (27% under age 15), most of whom live on the largest island of Rarotonga.The Cook Islands contribute to only 0.00012% of global GHG emissions. However, the country is highly vulnerable to climate change with 91% of the population living within one kilometer from the coast. The country graduated to high income country status by the OECD in January 2020, an achievement that has also limited its access to development financing. Its economy remains heavily reliant on tourism which contributed around 65% of GDP prior to COVID.

The country’s national development vision is focused on shifting to a sustainable development and green growth pathway that achieves well-being for all, including future generations. The Government has made significant progress in reducing its reliance on imported diesel fuel by promoting renewable energy generation and energy efficiency. Waste is a critical issue with landfills nearing capacity and no regular mechanism in place to export recyclable and hazardous waste. Steps are being made to shift to low-carbon transport modes and electric vehicles.

The procurement framework sets out value for money as a core procurement principle, and allows use of non-price criteria in bid evaluation. Procurements must be designed to increase participation of local suppliers and use of locally sourced materials. A 2018 policy encourages public authorities to prioritize the purchase of electric vehicles in government fleets.

>> Visual snapshot of Sustainable Procurement Maturity Level

Maturity Level:

Very Early Stage

Official Procurement Portal: http://procurement.gov.ck/

E-procurement Portal:

https://in-tendhost.co.uk/adbprocurementnetwork/aspx/Home

Key Achievements

• Procurement framework allows non-price criteria and domestic preference for local suppliers and materials
  
• National development vision focuses on increasing participation of Cook Island people, especially youth, women and disabled
  
• Strong policy framework in support of sustainable development and green growth, with a focus on the energy and transport sectors
  

Potential Pathways Forward

• Update the Procurement Policy to more clearly support sustainable public procurement practices
  
• Provide trainings and tools for procuring entities to design energy efficient and circular procurements
  
• Conduct market readiness assessments to explore potential for recycled and sustainably-source construction materials
  
• Partner with the Chamber of Commerce to launch support programs for green businesses
  

>> Timeline of Implementation of Sustainable Procurement Activities

2016

2021

2019

2012

2018

Target set to achieve 100% renewable energy by 2020 in the Cook Islands Renewable Electricity Chart

Procurement Policy promotes value for money and use of non-price criteria to favor local suppliers and materials

Government Fleet Management Policy encourages eco-friendly government fleets, including EVs

Infrastructure Cook Islands promotes policy to ban single use plastics and improve waste management

Initiatives to support green businesses launched under the COVID-19 Economic Reponse Plan

National Sustainable Development Agenda prioritizes a sustainable development pathway

Economic Development Strategy 2030 establishes the green economy as one of five core objectives

Pillar 1: Government Vision & Awareness of SusPP

Governments that establish a clear policy vision on SusPP can accelerate the shift from procurement as an adminstrative to strategic function, making clear how SusPP can deliver on important national social and environmental goals.

No specific policy or action plan to advance Sustainable Public Procurement has been developed by the Cook Islands Government. However, the nation’s development vision is centered on sustainable development and green growth pathways that SusPP can contribute to achieving.

The Te Ara Akapapa’anga Nui –National Sustainable Development Agenda 2020+ (NDSA 2020+) is the guiding document for the nation’s development. It sets a 100-year vision for “an empowered, innovative and environmentally conscious people who are grounded in our culture and languages, with the highest quality of wellbeing in life.” The central aspiration is Turanga Memeitaki – Wellbeing for all where people are comfortable, healthy and happy. One component of “happy” is the protection of a pristine environment rich in biodiversity and where future generations can be proud. The nation plans to be at the forefront of innovation in the blue economy and for the benefit of people, environment and culture. Community participation and locally rooted economies are core to development under the concept of “Kia Orana”.

The NSDA 2020+ sets out a 15 star pledge as priority areas of action, including:

• 2. To Tatou Ao Ora Natura – Our ocean and environment: Planning and implementing projects that do not affect the environmental, social and cultural fabric and bring positive change. Understanding where development stops and destruction begins.
  
• 11. To Tatou kimi’anga puapinga – Our prosperity: Cook Island companies operating in the global economic with the principles of sustainable development, ensuring a high standard of social responsibility and sustainability, not only in-house but also across their supply chains. Promote quality in the labor market by facilitating the recruitment of youth, women, people approaching the retirement age and immigrants including through the creative and digital economy.
  

Other NSDA 2020+ goals that public procurement can be designed to contribute to achieving include:

• Sustainable transport and electric vehicles
  
• Clean energy and energy self-sufficiency
  
• More resource-wise and low-emission economy, encouraging both consumers and companies to reduce their ecological footprints
  

The Cook Islands Economic Development Strategy 2030, adopted in 2021, establishes “Greening our economy” as one of five core objectives. It promotes improved workforce integration of women and persons with disabilities. Priority actions include to

• review the procurement framework to increase the opportunity for involvement of local Cook Island businesses (Action 4.21),
  
• develop a policy to address workforce barriers to people with disabilities (Action 3.21)
  
• Ensure sustainable inter-island shipping (Action 1.7)
  
• Introduction of tax and licensing arrangements that support importation and use of low carbon transport
  

The country submitted its first Nationally Determined Contribution (NDC) in September 2016. It re-commits to targets to achieve 50% renewable-sourced electricity by 2015 and 100% by 2020, originally set in 2012 under the Cook Islands Renewable Electricity Chart. The NDC also prioritizes efforts to improve energy efficiency and embrace low carbon transport technologies. A revised NDC is currently under development. The Climate Change Policy 2018-2020 sets mitigation targets to achieve 100% renewable energy generation and 100% energy efficiency by 2025, and achieve zero emissions by 2040.

Pillar 2: Legal & Regulatory Framework

Procurement law reform can be key to clear obstacles to implementation by establishing "value for money", not "lowest price", as a core procurement objective, and authorizing procurement approaches suited to SusPP.

Public procurement in the Cook Islands is guided by the Purchase and Sale of Goods and Services Policy (Procurement Policy) adopted in 2016 pursuant to Ministry of Finance and Economic Management Act 1995-96 (MFEM Act). The Policy applies to all government agencies and state-owned enterprises (SOE), although adaptations and exemptions are allowed for SOEs to guide their commercial nature. The Policy must be read together with the PSGS Templates Booklet which may be amended from time to time.

Achieving value for money (VfM) is a core procurement principle in the Cook Islands (Article 1.3.1). Evaluation criteria may include non-price criteria up to a maximum value of 50% of total weight (Article 5.11.5.q.iv). Higher amounts may be assigned if a justification is provided and approved by the tender secretariat. All tenders must include evaluation criteria that gives preference to locally established companies and bids with locally supplied resources (labor and/or materials).

The Government can organize central procurements where one agency completes procurement activities for another agency or several agencies together (Article 1.10). This procurement approach can be useful to aggregate sufficient demand to motivate the market to meet new sustainability criteria in tenders.

A Government Fleet Management Policy was adopted in 2018 that encourages government agencies to consider environmental implications when procuring and disposing of motor vehicles (Article 1.3.3). Agencies are encouraged to prefer electric vehicles in order to align with the Government’s strategy for renewable energy (Article 3.1.2). Procurers should take into account life-cycle costs including the vehicle fuel efficiency (Article 3.1.8).

Pillar 3: Institutions & Capacity

The Ministry of Finance and Economic Management (MFEM) is the lead government agency responsible for guiding procurement policy and practice. MFEM has established a Major Projects and Procurement Support Division to coordinate major Government-wide projects in pursuit of national development goals.

The Infrastructure Cook Islands (ICI), the public agency responsible for delivering infrastructure policy and development in the country, is committed to improving the quality and sustainability of core infrastructure services. Its Customer Service Charter guides the ICI’s procurement practices to achieve public value by:

• creating opportunities for local businesses and SMEs to promote skills development and a diverse and inclusive workforce;
  
• promoting greater environmental responsibility by protecting the environment and reducing waste, carbon emissions and pollution;
  
• giving businesses the opportunity to propose new and innovative solutions and build collaborations with like minded groups to find common solutions;
  
• engaging with businesses with good work ethics and employment practices.
  

Other relevant government agencies include the National Environmental Service and Ministry of Health. The Central Policy and Planning unit of the Office of the Prime Minister is responsible for providing policy advice and ensuring alignment with the NSDP 2020+. The Climate Change Cook Islands (CCCI) within the Office of the Prime Minister oversees climate change initiatives and projects across government. A National Sustainable Development Commission has been created to coordinate inter-ministerial collaboration on NSDP implementation.

Pillar 4: Market Practices

Market dialogue throughout the procurement process helps procuring entities to choose realistic sustainability criteria and ensure suppliers succeed in delivering on sustainability commitments over the contract duration.

Support Programs

The Government’s COVID-19 Economic Response Plan offers temporary green economy initiatives:

• Green Economy Initiative: An enhanced accelerated tax depreciation which aims to encourage private sector investment in environmentally sustainable assets.
  
• SMART AgriTech Scheme: supports farmers to reduce their environmental footprint through new technology and more efficient processes.
  

Ecolabel

The Mana Tiaki Eco Certification Scheme is awarded to tourism businesses with high levels of environmental sustainability. Nearly 50 businesses are certified as of October 2023, including resorts, restaurants, sps and marine tour companies.

Green Businesses

The Green Climate Fund financed a 2019 study to map the current investment in climate action by the private sector. 20 businesses participated and submitted information on their initiatives to invest in solar power, reduce power consumption and shift to EV transport.

Pillar 5: Procurement Operations

Various tools and procurement approaches can be employed to help procurers more easily identify environmentally friendly goods and services and attract a competitive market response.

Web Portal

The Procurement Portal Cook Islands (PPCI) is the government’s official procurement portal service designed to promote transparency, value for money and fair competition with regards to CI Government Procurement Activities. No specific tools to support GPP are currently available on the portal.

Building Code

The Cook Islands Building Code 2019 requires all building permit applicants to obtain an Environmental Significance Declaration detailing any potential environmental impacts. An Environmental Impact Assessment or Engineering Report may be required, if any concerns are raised. Applications must ensure sanitation and sewage systems comply with health and environmental regulations.

Procurement Practices

Infrastructure Cook Islands is a government agency leading the way on environmental initiatives and green procurements. It promotes zero waste initiatives guided by the “4Rs” principle: refuse, reduce, reuse and recycle. The agency submitted a policy proposing a ban of single use plastics that was approved by the Cabinet in 2019. The ban first focused on single use polystyrene packaging and has been expanded to other products and

packaging in a 2022 Schedule in the Solid and Hazardous Waste Bill. The ICI manages the Rarotonga Waste Facility where recycled items are accepted at no cost. The Facility does not yet have the capacity to process electronic or hazardous waste due to limited resources on the island.

The ADB, under the Japan Fund for Poverty Reduction, has financed the procurement and installation of a zero-emission medical waste incinerator at Rarotonga Hospital.The project is managed by the Major Projects & Procurement Support Team under MFEM.

Te Aponga Uira has established the first electric vehicle charging station and a number of resorts have invested in electric vehicles and scooters. The Ports Authority reduced its Avatiu Ports carbon emissions from 117 tonnes of CO2 equivalent in 2017/18 to 84 tonnes in 2019/20 through efficiency improvements and solar light installations (Economic Development Strategy, p. 94)

Pillar 6: Monitoring & Impact Measurement

Monitoring systems are essential to gather the information needed to keep SusPP implementation on course and communicate on the benefits achieved for the country.

The Cook Islands utilizes the Asia-Pacific Public Electronic Procurement Network portal as its e-procurement platform. No specific monitoring system for SusPP has been developed.

Projects Supported by ADB

Since 1976, the Asian Development Bank has committed 59 public sector loans, grants, and technical assistance totaling $223.2 million to the Cook Islands. The top three areas of financing are public sector management, energy and transport.

ADB is collaborating with regional and international partners to support, study, and pilot the Energy Transition Mechanism (ETM) in the Pacific Region, including Cook Islands. This project aims to catalyze public and private capital to accelerate the transition to clean energy in ADB DMCs.

Under another regional project, Promoting Climate-Resilient and Sustainable Blue Economies, the ADB supports the establishment and initial implementation phase of the Blue Pacific Finance Hub (BPFH), a new regional initiative to support increased investments in ADB's 14 Pacific DMCs in climate-resilient and sustainable blue economies

Other Initiatives supported by National/International Agencies

The Green Climate Fund supports the preparation of a Country Programme under its Readiness and Preparatory Support program in 2019. It sets out priorities that can be supported by the GCF and other development partners to support the country to achieve low emissions and climate resilient development. Identified priorities include:

• implement energy efficiency in public buildings,
  
• promote the use of electric vehicles and other forms of low-emission transport,
  
• provide climate-friendly shipping vessels,
  
• explore and implement opportunities to safely use non-biodegradable waste products to substitute natural materials in construction and development
  
• Creating and enhancing income generating activities for farmers
  
• Provide incentives for the private sector…to undertake research and innovation to develop affordable and locally appropriate climate technologies.
  

It is unknown if these activities have been financed under international development projects to date. The International Labour Organization (ILO) completed a February 2023 mission to explore opportunities to support private sector development in the Cook Islands, including on digital and green business.

References

ADB Member Fact Sheet, 2023. Cook Islands.

Cook Islands Government, 2012. Cook Islands Renewable Electricity Chart.

Cook Islands Government, 2015. Cook Islands National Infrastructure Investment Plan 2015 – 2025.

Cook Islands Government, 2016. Nationally Determined Contribution.

Cook Islands Government, 2016. Purchase and Sale of Goods and Services Policy.

Cook Islands Government, 2016. Purchase and Sale of Goods and Service Templates Booklet.

Cook Islands Government, 2016. Solid Waste Management Policy 2016-2026.

Cook Islands Government, 2018. Government Fleet Management Policy.

Cook Islands Government, 2021. National Sustainable Development Agenda 2020+.

Green Climate Fund, 2019. Cook Islands Climate Change Country Programme 2018-2030.

Pacific Islands Forum Secretariat, 2020. Cook Islands Private Sector Climate Actions Report.

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