Countries and Regions

	Table of Contents
p. 18 of 20 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 - Marshall Islands

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VII. ADB’s Operational Program

48. Pending the finalization of a comprehensive Pacific Island Economic Report (PIER) to be completed in the first half of 2000 and finalization of a revised strategy, the ADB assistance program for 2001-2003 remains tentative. Lending program for RMI over the 2001-2003 period is estimated to be about $21 million for two loans (see Table 1 and Appendix 4).

49. The Government reaffirmed the Skills Training and Vocational Education loan for 2000. For the balance of the portfolio, Government indicated that their priority would be the development of the outer islands and improvement of basic social services. However, the specific assistance program will be confirmed after the forward looking strategy has been prepared and based on sectoral emphasis in the upcoming Compact negotiations. In any case, the present thrust towards the development of outer islands which are considered areas affected by “poverty of opportunity” and support for social sectors are both consistent with ADB’s poverty reduction strategy.

50. The transport sector loan originally proposed for 2002 has been brought forward to 2001 to address immediate needs of outer island transport development focusing primarily on post infrastructure and handling facilities in the outer islands. The project will support copra and fishing industry and consequently improve the income generating capability among the poor in the outer islands. Lack of basic social services such as water, health and education in the outer islands was also identified as an area requiring more urgent attention. An outer island basic social services project is therefore proposed for 2002. It will include health, education, water and sanitation depending on the needs in specific outer islands.

51. A financial sector program loan on OCR terms is proposed for 2001 to improve overall financial and economic management, stabilize financial situation in the short run, to improve accountability and transparency in Government finances as well as foster the use of Trust Funds for long term financial stability and to reduce dependence on external flows.

52. Considering an element of over programming, the tentative timing for delivery of the proposed program and performance based lending considerations, this lending level is considered appropriate given: (i) the increase ADB assistance to the social sectors for poverty alleviation projects, (ii) a satisfactory absorptive capacity in the sectors concerned subject to confirmation, and (iii) a stronger commitment of the Government towards reform and ownership of a targeted portfolio.

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