Introduction

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

An estimated $40 million Tongan pa’anga is endorsed each year through the Procurement Division of the Ministry of Finance for the procurement of goods, services and works. Leveraging this spend to achieve the country’s social and environmental goals can make a significant impact. Tonga’s procurement law framework explicitly encourages contracting entities to design procurements with social and environmental criteria. However, the level of uptake by contracting entities of this opportunity is unknown and undocumented.

The Government of Tonga is one of the most vulnerable countries in the world to climate change due to its geographic location, status as a SIDS, and the importance of natural resources to its main economic sectors of fisheries, agriculture and tourism. The key economic sectors in Tonga are agriculture, fisheries and tourism. Tonga is heavily dependent on imported fossil fuel to meet energy demand. The country has made several policy commitments to shift to a low-emission development pathway, including through the adoption of electric vehicles in government fleets, installation of LED lighting and use of local and recycled construction materials.

>> Visual snapshot of Sustainable Procurement Maturity Level

Official Procurement Portal:

http://www.finance.gov.to/procurement

Key Achievements

• Procurement law specifically endorses sustainable procurement and domestic preferences
  
• Policy commitment to achieve 100% electric government fleet by 2027
  
• Policy plan to develop 100% Renewable Government Centers by adopting LED lighting, solar water heaters and other technologies
  
• Project prioritized for “Moving Towards Zero Waste” and policy priority to increase use of local and recycled construction materials
  
• Policy commitment to gender equity in economic opportunities, especially i n large-scale infrastructure projects
  
• Existing green entrepreneur support programs and businesses present
  

Potential pathways forward

• Support pilot sustainable procurements with interested contracting entities
  
• Conduct market readiness assessment studies in the energy efficiency and transport sectors, potentially also food/beverage
  
• Conduct general awareness raising campaigns on the benefits of sustainable public procurement and linkages to national development and climate goals
  
• Develop guidance, criteria and tools on sustainable public procurement for use by contracting entities
  
• Improve procurement monitoring system, especially related to KPIs on sustainable public procurement
  

>> Timeline of Implementation of Sustainable Procurement Activities

2010

2013

2015

2016

2019

2021

2022

Tonga Energy Road Map (TERM)

Government Procurement Reform Strategy approved

National Women’s Empowerment and Gender Equality Tonga Policy and Strategy Plan of Action adopted

Public Procurement Regulations recognize promote sustainable procurement and domestic preferences

Public Procurement Guidelines released

Tonga ratifies the Paris climate agreement

Climate Change Policy adopted

National Women’s Empowerment and Gender Equality Tonga Policy and Strategic Plan of Action

Tonga Low Emission Development Strategy 2021-2050

Pacific GreenPreneurs Network launched to support green SMEs

NDC Implementation Roadmap and Investment Plan priorities gender and social inclusion and circular economy

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.

Sustainable procurement is not explicitly recognized as a policy priority in Tonga. However, the Government of Tonga has set several environmental and social policy goals that sustainable procurement can contribute towards achieving. The Tonga Strategic Development Framework 2015 -2025 (TSDF II) envisions “A low emissions Tonga, where all sectors work together to create resilience, autonomy and self-reliance.”

Energy

The energy sector accounts for 39% of GHG emissions in Tonga. The Government of Tonga has set a clear policy commitment to reducing its dependence on imported diesel, shifting to 70-100% renewables in its energy mix. To achieve this, the Government has set out a roadmap of initiatives in its long-term Low Emission Development Strategy (LT-LEDS), including the development of standards for low-emission buildings and infrastructure and promotion of renewable energy. The LT-LEDS sets out nine “Major First Steps”, which include:

• Launch a loan program for businesses to improve their building’s energy efficiency, including general public buildings, schools, government buildings, essential buildings and businesses such as resorts. Targets are set for 30% energy-efficient buildings by 2030, 60% by 2040 and 100% by 2050.
  

• Switch to energy-efficient bulbs, including through a LED Street Lamp Retrofit Program for all roadway and outdoor lights and an Interior Light retrofit in existing Government Buildings. The policy notes that all future procurements of street lamps and interior lights should automatically specify LED as standard. Different LED technologies will need to be tested and monitored to identify the best solutions in Tonga.
  

The Government envisions the creation of 100% Renewable Government Centers, along with electric vehicle pilots and improved energy efficiency in buildings (Status update). Other planned initiatives include a LED lighting retrofit program and promotion of solar water heaters to replace electric heaters.

Transport

The Government aims to shift to a more sustainable transport system through mode-switching (to electric vehicles, buses, mopeds and bicycles) and biofuel adoption. Transport is the second largest source of GHG emission and represents nearly 90% of all oil consumption in the country. Fuel efficiency standards are seen as a practical approach in the short-term, with plans to shift to electric vehicles in the medium term.

The Tonga Climate Change Policy set a target of “a transport system that is not reliant on fossil fuels.,” The NDC specifies a target of 2% annual efficiency gain for newly purchased light duty vehicles. The LT-LEDS pathway for transport supports this NDC aim through either establishing mandatory vehicle standards and/or incentives for purchasing more efficient vehicles through taxes, fees, or import tariffs. The Government also aims to tackle the issue of end of life disposal of vehicles, by allocating responsibility to importers or exporters.

Priority Action 6 for the Transport Sector is for the government to “lead by example” by piloting electric vehicles (EVs) in the municipal government fleet. The goal is to achieve a 100% electric government fleet by 2027, inspiring the public to follow suit and achieve in the medium term. This pilot will be led by the Ministry of Infrastructure (MOI) with the Department of Environment, Climate Change and Energy. Other partners would include Tonga Power Limited, engineering firms, car dealers and electrical contractors. In terms of producers and makers, EVs could be supplied from Japan, Korea, China and the US. This step will start with a proposal to be developed by 2022 for funding consideration, with the aim that, by 2027, 100 percent of the government fleet are EVs.

Waste

Waste management is gradually improving in Tonga, aimed at reducing the pollution of water supplies, oceans and island ecosystems. The LT-LEDS

prioritizes the development of incentives such as banning of single-use items, increasing fees or introducing container deposit schemes and improving waste management facilities including through participation in Pacific regional recycling initiatives. Another priority is to increase use of local and recycled construction materials, such as bricks, concrete, timber, glass, bamboo, straw and other plants. The development of a national waste policy for Tonga is planned by 2025 in order to better understand the waste situation in the country and develop effective policy responses.

Tonga’s NDC Implementation Roadmap and Investment Plan (2022) sets out plans for a “Moving Towards Zero Waste” initiative. It promotes a circular economy model that views materials as resources rather than waste. Potential project components include end-of-life disposal levies for items such as vehicles, tires, batteries and e-waste

Equal Opportunity

Tonga has a goal of “Gender Equity by 2025.” The third National Outcome of the TSDF II envisions “‘a more inclusive, sustainable and empowering human development with gender equality”. The National Women’s Empowerment and Gender Equality Tonga Policy and Strategic Plan of Action 2019–2025 prioritizes “equitable access to economic assets and employment.” Section 5.4 Gender and Income Equality Considerations of the Tonga Energy Efficiency Master Plan highlights the opportunity to increase the participation of women in newly opening technical vacancies as the result of policy implementation for energy efficiency and renewable energy projects.

The NDC Implementation Roadmap contains guidelines for promoting gender and social inclusion into NDC projects. The guidelines recognize the potential to empower women through employment in large infrastructure projects. Doing so creates local jobs, contributes to local development and fosters social acceptance of the projects. Several measures are suggested that can be integrated into projects and procurements, including:

• Equal-pay-for-equal-work policy clauses
  
• Monitoring pay rates for men and women to identify if a gap exists
  
• Career development programs
  
• Creation and support of women’s groups/networks
  
• Women’s mentoring/coaching
  
• Implementing effective measures to create working conditions attractive to women
  
• Providing social protection addressing women’s specific needs (for example, maternity leave)
  
• Inclusion of vulnerable groups, such as persons with disabilities
  
• Promoting healthy work-life balance
  
• Providing vocational training
  
• Facilitating childcare arrangements
  
• Training and sensitization of human resource managers to eliminate gender bias (particularly for construction, operations, and management roles)
  
• Ensuring (and monitoring) appropriate safety and working conditions at project construction sites and in operational areas, particularly for women (e.g. through improved lighting)
  
• Collecting and publishing gender-disaggregated employment data.
  

Tonga is developing an NDC Gender Inclusion Document that will provide further guidance. The NDC Roadmap also highlights the need to engage people with disabilities with all aspects of projects.

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 is regulated by the Public Procurement Regulations 2015, A 2020 revision raised the procurement thresholds in Procurement Policy - Revised Procurement Threshold. A Contracting Entity Procurement Manual was released by the Central Procurement Unit in 2016.

Value for Money

Bid evaluation in Tonga is on the basis of Tonga is best “value for money” (Article 56). The criteria on which contracting entities shall assess best value for money shall be either: (a) the lowest evaluated price only, or (b) a combination of price together with various award criteria linked to the subject matter of the contract in question.”

The 2015 Regulations specifically allow for the specification of non-price criteria, including:

• quality, including technical merit, functional characteristics, accessibility, social or environmental characteristics and trading and its conditions;
  
• cost-effectiveness based on life-cycle costing including costs relating to acquisition, costs of use, such as consumption of energy and other resources, maintenance costs, and end of life costs such as collection and recycling costs.
  

Non-price criteria must be quantified in monetary terms whenever possible or given relative weighting or expressed in the form of pass or fail requirements. Contracting entities may specify functional criteria in tender documents, an approach that can be used to specify a certain environmental or social goal (e,g, 25% reduction in energy usage) while leaving space for the market to propose innovative solutions.

Domestic Preference

The 2015 Procurement Regulations allow for a margin of preference of 5 to 10% to be applied to domestic bidders (Articles 43, 57). Eligibility for domestic preference can be based on “ownership, location of bidder or production facilities, origin of labor, raw material or components, extent of sub-contracting or association with local partners or any other relevant factor.” A minimum of 30% of the bid price must be allocated to domestically sourced labor, raw material or components to benefit from the domestic preference.

Procurement Approaches

The 2015 Procurement Regulations authorize various procurement approaches that can be utilized to advance sustainable public procurement, including:

• Division into lots: Contracting entities may divide a procurement into several lots if this will result in best overall value (Article 21). This approach can be useful to create smaller contracts accessible to small and medium enterprises (SME) and emerging green-minded companies.
  
• Centralized procurement: The Central Procurement Unit may organize central procurement of common-use items, including through framework agreements (Article 22). This approach can be useful to pre-select suppliers with sustainable offerings for direct purchasing by multiple contracting entities.
  

Pillar 3: Institutions & Capacity

No government body has been assigned specific responsibility to promote or oversee sustainable public procurement. The following summarizes the key procurement institutions in general, as well as other ministries with responsibilities related to sustainable procurement.

Procurement Institutions

The Government of Tonga is shifting towards a decentralized procurement system. A 2020 Treasury Circular increased the procurement threshold to $20,000 for application of the 2015 Procurement Regulations - meaning that procurements under this threshold are largely managed by each contracting entity with minimal oversight.

Procurements above $20,000 require the endorsement of the Procurement Division within the Ministry of Finance. Procurements above $100,00 require the endorsement of the Government Procurement Committee consisting of high-level Ministers, CEOs, the Chief Secretary and Solicitor General

Each contracting entity is responsible for establishing a procurement unit and ensuring staffing by trained and experienced officers (Article 9). In cases when the head of the contracting entity observes a limited capacity of the Procurement Unit, the procurement may be conducted through the Central Procurement Unit.

A Central Procurement Unit is established (Article 11) to carry out procurement on behalf of all contracting entities where the procurement contract exceeds $20,000 and procurement of common items for the benefit of all contracting entities (Article 11).

Other Institutions

The Second NDC contains a listing of the main government institutions involved in the country’s climate change response. Many of these institutions have responsibilities linked to the promotion of sustainable procurement:

• Ministry of Meteorology, Energy, Information, Disaster Management, Environment, Climate Change and Communication: responsible for the implementation of the key strategic climate policies including the Low Emission Development Strategy 2015-2050.
  
• Ministry of Trade and Economic Development (MTED) is responsible for imports and customs service, including implementation and enforcement of any vehicle and fuel standards.
  
• Ministry of Agriculture, Food and Forests (MAFF) is responsible for policy and implementation for agriculture and forestry and chairs the Agricultural Growth Committee.
  
• Institutions responsible for waste are the Department of Environment through the Waste Management and Pollution Control (WMPC) Division and the Waste Authority Limited (WAL), a government-owned enterprise.
  
• Institutions responsible for energy include the Department of Energy (MEIDECC) and the Tonga Electricity Commission. The Tonga Energy Research Center is responsible for research and development to inform the country’s electrification and renewable energy goals.
  

Capacity and Training

The Public Procurement Regulations 2015, Article 16, require that all procurement related functions be carried out by persons trained and knowledgeable in procurement. However, a 2020 audit found that the Procurement Division has not established qualification requirements for persons carrying out procurement functions.

The Australian Department of Foreign Affairs and Trade (DFAT) provided financing for the recruitment of a Procurement Manager placed within the Central Procurement Unit (CPU) Division of the Ministry of Finance and National Planning (MoFNP) and International Procurement Specialist (IPS) from 2016-2018. The IPS carried out several activities to improve the capacity of Tonga’s procurement institutions including (copied of these materials were not uncovered in this desk review):

• Support manuals to complement Procurement Regulations
  
• Delivery of a structured training and awareness program across government
  
• Established a Pilot Framework Agreement
  
• Procured a Buying Guide
  

However, no specific training activities have been organized on the topic of sustainable public procurement.

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 Pacific GreenPreneurs Network is active in Tonga. The objective of the Network is to foster environmentally friendly and equitable employment expansion by assisting entrepreneurs (with a focus on women and youth) in establishing their green and sustainable enterprises. These businesses are designed to align with their respective countries' climate and sustainable development goals.

EIT Climate-KIC has announced the top 10 start-ups chosen for their first Blue Economy ClimAccelerator in the Pacific Islands programme. The goal of this programme is to escalate climate solutions in the region, particularly focusing on maritime activities. Two of the selected start-ups include Defiant Robotics from Tonga, which manufactures solar-powered 3D-printed robots for collecting ocean waste, and South Pacific Mozuku Tonga Ltd, a seaweed producer/exporter that is expanding into animal feed seaweed varieties to decrease methane production.

The Clean Green Tonga initiative gives awards to businesses or projects that promote environmentally sustainable technologies and innovations.

Green Businesses

Local Companies such CBS Power Solutions are working on public infrastructure projects in the Pacific Islands.This illustrate how the local economy can provide green construction and infrastructure solutions such as engineering services, LED lighting, renewable energy solutions to Pacific Islands countries aligning with broader sustainability ambitions and foster sustainable development in the region. The government is also collaborating with local green business associations to encourage capacity building to increase local communities’ energy independence in Tonga.

A company in Tonga provides a battery collection service, which could potentially be expanded to include other types of waste, or could be used as an example for future waste collection services. Another company in Tonga collects and safely disposes of waste oil (NDC Roadmap, p. 134). Various pilot projects are planned under the NDC Implementation Roadmap to explore the potential for waste reutilization and repurposing under a circular economy model. Pilot scale technologies at Tapuhia have been installed to demonstrate glass crushing and plastic shredding. The country is interested in these technologies for their co-benefits of creating local employment, finding feasible and cost-effective ways to recycle products, and developing sustainable markets through creating demand for the end products. (NDC Roadmap, p. 135)

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 specific tools or practices related to sustainable procurement in Tonga were uncovered in the 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 specific monitoring system or KPIs on sustainable procurement have been established in Tonga.

The Australian Department of Foreign Affairs and Trade supported the implementation of a new procurement tracking database and identification of a small number of compliance and performance indicators and associated targets to be publicly disseminated. The publication was planned on the procurement website by December 2017, but was not found in this desk review. The study found, in general, the procurement monitoring could be improved.

Projects Supported by ADB

Green Pacific Port initiative, supported by the ADB, integrates applicable global approaches and promotes more efficient port infrastructure and operations, in a regional project implemented by The Pacific Community. The Green Pacific Port approach explores port development that enables holistic - operational, energy-conscious, and environmental - management of ports. The initiative’s benefits extend to reduced environmental impacts, better quality of working and living in port areas, and greater commercial benefit.

The ADB / PRIF Study into Potential for Regional Recycling Hub may provide improved recycling market opportunities. The PacWastePlus project is also providing information and support for ways to implement initiatives such as container deposit legislation or technologies applicable to the PIC context.

Tonga Renewable Energy Project under the Pacific Islands Renewable Energy Investment Program, 2018-2023, $47.6 million, This project aims to help Tonga move away from fossil fuels and shift to renewables. The project will deliver utility-scale storage systems to provide base load response and grid stability, paving the way for more renewable energy integration in the main island, while green mini-grids will be installed in the outer islands.

Other Initiatives supported by National/International Agencies

The Low Emissions Climate Resilient Development (LECRD) is a partnership with the New Zealand Ministry of Foreign Affairs and Trade (NZMFAT) that will provide support with project concept proposals in the areas of renewable electric generation, security of supply, energy efficiency measures for buildings and appliances, and reduced oil consumption in transportation

The Global Green Growth Institute has provided support since 2021 with the launch of the Tonga Energy Road Map 2021-2035 (TERM-PLUS) Framework. This Framework also sets in motion GGGI’s future work with Tonga in building an Investment-Pipeline of projects to reach 70% renewable electricity by 2030 and 100% by 2035 with vast improvements in energy-efficiency, transportation, and resilience.

Tonga Climate Resilient Transport Sector Project 2019–2024 (USD 27 million), supported by the World Bank, aims to facilitate the safe, efficient and sustainable movement of people and goods in Tonga while strengthening resiliency of the Transport sector.

The current National GCF Pipeline as part of the Tonga Country Programming Process (Period: 2020 -2023) includes a US$10 million project. It focuses on delivering proper waste disposal facilities for all of Tonga and innovative waste to energy technology including recycling facilities and solutions for better managing waste emissions

SPREP will be undertaking a feasibility study to develop a National Used Oil Management Plan, with Tonga one of the selected countries.

References

ADB, 2023. Asian Development Bank and Tonga: Fact Sheet.

Cardno, 2018. Independent Evaluation of DFAT’s Economic and Public-Sector Reform Program (EPSG III) to the Kingdom of Tonga 2015/16 – 2017/18.

Government of Tonga, Climate Technology Centre and Network, 2020. Energy Efficiency Master Plan.

Government of Tonga, 2013. Tonga National Infrastructure Investment Plan 2013-2023

Government of Tonga, 2021. Tonga National Infrastructure Investment Plan 2021-2030

Government of Tonga, 2015. Second Tonga Strategic Development Framework (TSDFII) 2015-2025

Government of Tonga, 2015. Public Procurement Regulations 2015,

Government of Tonga, 2015. Climate Change Policy.

Government of Tonga, 2015. National Women’s Empowerment and Gender Equality Tonga Policy and Strategic Plan of Action 2019–2025.

Government of Tonga - Ministry of Finance, Central Procurement Unit, 2016. Contracting Entity Procurement Manual

Government of Tonga, 2021. Tonga Low Emission Development Strategy 2021-2050.

Government of Tonga, 2021. Tonga Energy Road Map 2021-2035 - TERM-PLUS Status Update.

Government of Tonga, 2021. Tonga Energy Road Map 2021-2035 - Discussion Points.

Government of Tonga, 2021. NDC Implementation Roadmap/Investment Plan.

Government of Tonga, 2021. Hunga-Tonga-Hunga-Ha’apai Recovery and Resilience Building Plan 2022-2025.

Government of Tonga, 2020. Second Nationally Determined Contribution.

Government of Tonga - Ministry of Finance, 2020. Procurement Policy - Revised Procurement Threshold.

Government of Tonga - Office of the Auditor General, 2020. Administration of Public Procurement.

Pacific Region Infrastructure Facility, ADB, 2018. Tonga Country Profile: Recycling Systems.

SPREP, 2020. Assessment of Legislative Frameworks Governing Waste Management in Tonga.

World Bank, Global Public Procurement Database. Tonga: Country Profile for 2021.

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