Countries and Regions

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p. 6 of 20 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 IX. Local Cost Financing

Country Assistance Plans - Marshall Islands : I. Country Performance Assessment

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E. Implementation Assessment

1. The Portfolio

19. ADB has approved eight loans from the special fund resources totaling $52.3 million since 1990, out of which five are ongoing (see Appendix 2, pages 1 and 2). All the loans were rated as satisfactory in terms of both implementation progress and achievement of development objectives. Of the net effective loans, cumulative contract awards and disbursement amount to $27.362 million and $25.312 million, respectively. There were no disbursements from the program loan. The disbursement ratio reached 18.2 percent, compared with ADB average of 22.2 percent. There were 33 TA grants totaling $13.64 million including 6 for project preparatory TAs.

20. Implementation of loans is proceeding satisfactorily, and there are no problems with counterpart funding. Lack of qualified counterpart staff, however, remains a perennial problem. There is a need to strengthen and empower the senior civil service cadre and designate a focal point and contact group to improve project implementation.

2. Issues in Project Implementation

21. The progress in all five projects are satisfactory although one project loan is behind schedule. There has been delay in the release of the second tranche of PSRP to allow time for RMI to meet the remaining tranche conditions. Government is currently taking steps to expedite compliance with third tranche release conditions.

22. Delays in project implementation are mainly due to problems associated with (i) lack of project implementation capability, (ii) procurement delays and improper documentation, (iii) continued lack of qualified counterpart staff capable of project implementation and to independently manage the project subsequently, and (iv) lack of government ownership of and commitment to projects. The timely submission of audited financial statements has been a perennial issue. Delay in submission of audited financial statements alone has resulted in poor implementation rating of projects. This has now been addressed by contracting private auditors to undertake audit of project accounts funded from loan proceeds. No difficulties have been encountered with availability of counterpart funds. The hands on approach by ministers and heads of executing agencies have helped speed up implementation and disbursements.

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