Countries and Regions

	Table of Contents
p. 20 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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IX. Local Cost Financing

54. Given the reductions in annual Compact funding, as well as the major ongoing economic restructuring and fiscal adjustments, RMI is facing severe budgetary constraints which currently limit the Government’s capacity to finance local costs of ADB financed projects. While the situation is expected to improve after Compact negotiations are completed and when the benefits of reforms materialize over the medium term, appropriate consideration for interim local cost financing constraints should be factored by ADB in the preparation of financing plans for new projects in the Marshalls.

Back VIII. Economic and Sector Work Program	Country Assistance Plans - Marshall Islands