Introduction

This Factsheet outlines the current progress in advancing Sustainable Public Procurement (SusPP) in Niue 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.

Niue's public sector accounts for a significant share of economic activity, with government spending averaging 68.9% of GDP during 2015 to 2017. The Government is the largest employer on the island, with approximately 400 employees. The island is approximately 259 square kilometers with a population of 1,862 people in 2019 and an Exclusive Economic Zone (EEZ) of 300,000 square kilometers. The main economic sectors include tourism, fruit juice manufacturing and remittances from offshore populations.

The Government of Niue lacks a comprehensive policy and legislative framework on procurement and climate change. Actions are currently mainly guided by periodic instructions and related to internationally financed projects. In this context, piloting Sustainable Public Procurement in ADB-financed projects offers the most promising entry point. Such pilots can focus on key national priorities including waste reduction, pollution control and promotion of sustainable tourism. Energy efficiency measures, especially the retrofitting of air conditioners in government buildings, is called for in the Government’s energy policy framework.

>> Visual snapshot of Sustainable Procurement Maturity Level

Maturity Level:

Very Early Stage

Key Achievements

• Political commitment to shift to renewables and promote energy efficiency to reduce heavy reliance on imported fuel
  
• Recent studies show the waste management problem on the Island and proposes solutions including plastic waste bans (in place) and improved hazardous waste management
  

Potential Pathways Forward

• Pilot sustainable public procurement in ADB financed projects
  
• Launch awareness raising campaigns on the benefits of SusPP to achieve the country’s energy, waste and tourism goals
  

>> Timeline of Implementation of Sustainable Procurement Activities

2015

2021

Strategic Energy Road Map 2015-2025 calls for energy efficiency measures in government buildings

PEFA Assessment indicates low level of maturity in the national procurement system

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.

Currently no formal procurement policy has been adopted by the Government of Niue, rather the procurement system operates on the basis of informal guidance from the Treasury. Notably, a draft of the Government of Niue Procurement Policy has been prepared, but is yet to be adopted (PEFA p.8). A 2021 Public Expenditure and Financial Accountability (PEFA) Performance Assessment Report supported by the ADB rated the performance of the country’s procurement system as “D”, representing a low performance score.

The following sections outline the nation’s development vision and goals, as this can inform the design of an implementation plan for Sustainable Public Procurement in the country.

The Niue National Strategic Plan 2016-2026 which has seven national development pillars, including:

• Finance and Economic Development: Sufficient financial resources are secured, and responsible fiscal management is prudent,sustainable and in support of development strategies.
  
• Infrastructure: Sustainable use and management of key infrastructure that is climate proof and resilient.
  

• Environment and Climate Change: Sustainable use and management of Niue’s natural resources and environment for present and future generations
  
• Private Sector: A prosperous and skilled island nation, underpinned by a thriving and entrepreneurial private sector
  

Climate change

Niue submitted their Nationally Determined Contribution to the UNFCCC Secretariat in 2015. The NDC set a goal of achieving 38% share of renewable energy in the national grid by 2020 compared to a baseline of 2% in 2014. A key action to achieve this goal is a 10% reduction in residential, commercial and government electricity demand. Conditionally upon international assistance, the Government is willing to raise ambition to achieve an 80% share, or higher, of renewables in its national grid by 2025.

Work is underway to develop a National Climate Change Communication Strategy that aims to raise public awareness of climate change and related national policies, programmes and projects. It is unknown if this project will highlight the powerful role that sustainable public procurement can play in achieving climate goals.

Energy

The Niue Strategic Energy Roadmap (NiSERM) 2016 – 2026 calls for efforts to collect and monitor energy usage in all government buildings by installing meters, focusing on those using air conditioning units (p. 19). The Roadmap plans to take an inventory of electrical appliances in all government buildings, along with their power usage (watts). A priority action is to retrofit air conditioners in government buildings (p. 18).

Waste

Waste is a critical issue for the small island state. The Government banned single use plastics in 2018. A comprehensive waste audit was undertaken that year to design recommendations to address hazardous waste. The audit found that e-waste and vehicles are being stockpiled in the country due to a lack of recycling facilities. Used waste, paints and chemicals are also stored and exported for treatment. Actions to reduce waste and improve management are considered high priorities in the country.

Tourism

A Responsible Tourism Policy was launched in 2018 by the Government of Niue. It aims to build a tourism sector that delivers triple-bottom-line benefits to the country - for the environment, community and economy.

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.

No stand-alone legislation on procurement has been adopted in Niue. Established practice is that purchases of $10,000 and above are put to competitive tender, while three quotes need to be obtained for purchases below this amount.

Pillar 3: Institutions & Capacity

The public financial management (PFM) system, including procurements, is managed centrally by the Treasury Department of Finance and Planning. A Tender Board has been established with the Chamber of Commerce as secretariat (PEFA 2021 p. 5).

Other government institutions that may have responsibilities linked to the advancement of SusPP include the Ministry of Infrastructure, Ministry of Natural Resources and Niuu Tourism.

Regional collaboration would be effective when advancing SusPP in Niue. The country has received support and financing for projects on related topic from partners such as Pacific Community who have supported NDC trainings and the Pacific Regional Infrastructure Facility who are assisting in the preparation of Niue’s National Infrastructure Investment Plan 2030.

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.

The promotion of green market practices in Niue would benefit from knowledge transfer from neighboring countries across the Pacific. The Niue Government has been collaborating with a renewable energy company in New Zealand to work on public infrastructure projects helping the country to lower its carbon footprint.

The ADB Pacific Private Sector Development Initiative provides support to the Government of Niue to create an online business registry, alongside efforts to review the company law, assess the potential for a national superannuation scheme, and fortify the Niue Development Bank.

The Niue Chamber of Commerce is the premier private sector association in the country. It supports programs to empower youth entrepreneurs and local businesses to access new business and trade opportunities.

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.

No evidence of sustainable procurement tools or practices were found in this desk review.

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.

No evidence of monitoring systems for sustainable public procurement were found in this desk review.

Projects Supported by ADB

Niue became the 68th and most recent member of ADB in 2019. To date, ADB has committed to the country 2 public sector grants and technical assistance totaling $4.3 million. This partnership will initially focus on leveraging regional technical assistance to determine critical areas for ADB investments such as in renewable energy, in building resilience to disasters caused by natural hazards, and in mitigating the impacts of climate change.

An initial Technical Assistance project focused on helping the Government of Niue to complete a self-assessment of its public financial management (PFM) systems and its project management unit, to inform the preparation of a roadmap for future strengthening.

Other Initiatives supported by National/International Agencies

A 2021-2024 project is being coordinated by the Regional Pacific NDC Hub to develop a National Climate Change Communication Strategy document to be endorsed by the Department of Environment on behalf of the Government of Niue. The main objective of the assignment is to produce a Climate Change Communication Strategy which is aimed at raising public awareness of climate change and related national policies, programmes and projects and their impacts among Niue citizens and numerous other stakeholders.

A Global Environmental Facility project was approved in 2019 to enable the achievement of low carbon energy access, sustainable energy, and green growth targets of Niue ($3.3 million). The project aims to support energy audits, improved energy efficiency measures and renewable energy in commercial and government buildings.

References

ADB Member Fact Sheet, 2023. Niue.

Government of Niue, ADB (2015). Strategic Energy Road Map 2015-2025.

Government of Niue, ADB (2021). Public Expenditure and Financial Accountability (PEFA) Performance Assessment Report.

Government of Niue, ADB (2021). National Climate Change Communication Strategy 2021-2024.

Secretariat of the Pacific Regional Environment Programme (SPREP) (2022). Waste audit report Niue.

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