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Regions and Countries Country Assistance Plans Document
GMS Assistance Plan
VII. ADB's Operational Program102. The proposed lending program for GMS subregional projects during 2001-2003 comprises nine projects requiring $265 million in ADB financing (Appendix 4). Of these nine projects, four have been included in the CAPs. However, three of these four projects will still require additional funds since some of their components could not be accommodated under the respective country IPFs. Five projects, meanwhile, require separate funds allocation. These five projects, plus the three projects partially accommodated under the country IPFs, will require additional IPF allocations amounting to $155 million, of which $97 million will be provided under ADF terms, and $58 million will be in OCR terms. The incremental amount needed to finance priority GMS projects is approximately $50 million annually over the period 2001-2003. 103. Based on project classification guidelines, four projects amounting to about a quarter of the financial requirements will be for core poverty interventions. The remaining five projects are classified as other development interventions. These projects will mainly provide the transport and telecommunications backbone that will link the remote areas in the region, and in the process enhance economic activities benefiting the poor, especially in the undeveloped areas to be served by the projects. 104. In terms of sectoral distribution, 58 percent of the financial requirements will be for transportation and communication projects, 11 percent for social infrastructure, and 15 percent for agriculture and natural resources. Classified under “others” was the 15 percent allocated for Mekong River tourism infrastructure development. The lending pipeline for 2001-2003 thus provides for a broader sectoral distribution as compared to the distribution recorded from 1994 to 1999, which was dominated by transportation and communications (85 percent) and energy (15 percent). 105. The proposed TA program for 2001- 2003, which has an IPF of $14.1 million, will provide mainly advisory technical assistance in the priority areas of telecommunications, HRD, environment, trade, and investment. For telecommunications, which will take up the largest share of the TA pipeline ($3.3 million for 2001-2003), the focus is on the study of the regulatory regime, which will be needed to provide a sound policy and regulatory environment when the telecommunications “backbone” project becomes operational. For HRD, the focus is on prevention and control of diseases (malaria, HIV/AIDS), skills development, and improvement of higher education. For the environment, integration of environmental concerns in development planning will continue to be the focus of the TA program. 106. The rest of the TA pipeline consists of the project preparation activities for Mekong River commercial navigation, watershed management, prevention and control of HIV/AIDS, and ethnic minorities projects in the lending pipeline. There are four PPTAs, costing $3.6 million, or 25.5 percent of the TA pipeline. The rest consists of 14 ADTAs, amounting to $10.5 million or 74 percent of the total. 107. In terms of sectoral distribution, transportation and communication takes up the largest share (30 percent), while social infrastructure closely follows at 26 percent. Agriculture and natural resources is third with 13 percent. The same sectors were active in the GMS Program's TA activities from 1994 to 1999. The share of social infrastructure showed the most significant increase, from 6 percent in 1994-1999 to 26 percent in the TA pipeline for 2001-2003.
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