Countries and Regions

	Table of Contents
p. 10 of 20 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies A. Agriculture B. Infrastructure C. Social Infrastructure and Environment D. Governance Dimensions of ADB Operations E. Gender Dimensions of ADB Operations F. Private Sector Operations 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 : III. Sector Strategies

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B. Infrastructure

1. Energy

32. The 1999 Ebeye health and infrastructure loan will directly assist in the improvement of utilities in Ebeye. The loan will be used to undertake upgrade of power and water supply and distribution facilities. Under the ADB assistance, the private sector has taken management of the utilities through a management contact to be followed by a long term concession arrangement. A new power plant has been commissioned in Majuro in late 1999 which will adequately meet the needs of the entire population of Majuro atoll and its growing private sector.

2. Transport

33. With Japanese assistance in the road sector and proposed assistance from Taipei,China for improving airport and aviation related infrastructure, ADB will focus its attention to the port sector in the outer islands and related infrastructure needs of the outer islands. Such a strategy avoids duplication and is directly linked to ADB’s support to the coconut and fisheries sectors. This is consistent with ADB’s poverty reduction strategy by improving infrastructure in the more vulnerable outer islands. A project preparatory TA for outer island transport infrastructure development is proposed for 2000 with a possible loan in 2001.

3. Finance and Industry

34. The financial needs of the predominantly services oriented business sector in the urban centers are reasonably well met by the commercial banks; although interest rates are relatively high and maturities relatively short in view of economic uncertainties and perceived risk. A gap exists however in development finance to meet the needs of small-scale fisheries and agricultural activities, especially in the outer islands, accompanied by technical and logistical support to make such activities viable and productive. There is also a need to develop community credit mechanisms such as revolving funds in the outer islands, and credit unions in the urban centers, to meet micro-production and household credit requirements. ADB proposes to support micro-credit.

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