Countries and Regions

	Table of Contents
p. 19 of 21 BACK | NEXT I. Country Performance 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 IX. Local Cost Financing

Country Assistance Plans - Papua New Guinea

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VII. ADB's Operational Program

A. The Proposed Program

53. Based on the current ADF graduation position, the proposed loan program for 2001-2003 comprises only OCR lending (following limited ADF lending in 2000). Following current policy, the proposed program envisages 3-4 loans per year, totaling on average about US$60 million per year, is programmed for the period (in 2003 the total is boosted by an envisaged second health sector development program). The declining limit on the ADB share of project financing then implies a rising total project cost. The program total is ambitious, and will require concerted effort. A flexible approach will be adopted, reacting rapidly to changing circumstances.

54. The review of the factors underlying PNG's graduation from access to ADF to be undertaken in late 2000 may result in reconsideration of the graduation decision. In that case the lending program would be reviewed.

55. At this stage, the TA program envisaged for 2001-2003 amounts to about $3.0 million per year in 2001 and 2002, rising to $3.4 million in 2003. Although the proposed TA program has generally been agreed to by Management, ADB financing may be subject to further reprioritization to fit in with the ADB-wide annual resource envelope. The proposed lending and TA programs are summarized in Table 1.

B. Strengthened Role of ADB's Mission

56. In August 1999, the ADB opened a special mission in PNG, staffed by a specially recruited Project Implementation Officer. The mission already has had some success in assisting in improving portfolio performance; it is anticipated that the mission will result in a significant benefit. However, in keeping with the ADB's new general policy on resident missions, it has been agreed that a higher profile mission would generate even greater benefits, in terms of sustained policy dialogue. Therefore the ADB is considering upgrading the mission to full Resident Mission status. It is envisaged that the upgrade will be proposed to the Board in late 2000, with a view to the upgrade being effected during 2001.

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