Countries and Regions

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p. 6 of 13 BACK | NEXT I. Country Performance Assessment A. Economic Performance Assessment B. Poverty Assessment C. Assessment of Socio-Environmental Performance D. Governance: Sound Development Management E. Implementation Assessment II. Country Operational Strategy III. Sector Strategies IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program

Country Assistance Plans - Nauru : I. Country Performance Assessment

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E. Implementation Assessment

1. The Portfolio

15. There is one ongoing program loan in Nauru of $5 million for FFRP and four Technical assistance (TA) grants totaling $844,000. The program loan was approved in December 1998 made effective in February 1999 (Appendix 2, pages 1 and 2). Under FFRP considerable progress has been made especially in the area of expenditure control through substantial downsizing of civil service and cut backs in expenditure. However, the progress has been stalled in the latter half of 1999 and second tranche release conditions are yet to be met. Release of second tranche is therefore likely to be delayed.

16. With regard to ongoing TAs, the Social Awareness and Transitional Requirements TA is still to be utilized. The capacity building TA piggybacked to the Program Loan is progressing. The Program Coordinator and Debt Specialist have been fielded, and the Bank expert is to be engaged shortly. The Y2K assistance TA has been partly implemented with the critical requirements of BON completed in time.

2. Issues in Project Implementation

17. The following implementation problems have been encountered: (i) lack of commitment at the political level, (ii) no focal point for ADB’s consultations on program implementation, and (iii) absence of strong leadership in the MOF on a day to day basis. Government was requested to immediately appoint a Secretary for the ERC and to provide it full time administrative support.

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