Regions and Countries

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p. 14 of 18 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 - Tuvalu

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V. Donor Activities and Aid Coordination

34. Tuvalu continues to attract assistance from a range of donors. The actual level of foreign assistance in 1999 is $13 million, $4.6 million from the ADB. Principal donors to Tuvalu are Australia, Japan, New Zealand and Taipei,China. The two major donors are Japan and Australia. Japan financed a fishing harbor in 1995 ($5 million) and a secondary school in 1996 ($6 million) and is now planning to provide a new vessel for inter-island transportation and, lately, the construction of a new hospital. Under an Australian grant, all islands were connected by satellite-based telecommunications in 1996. Presently, Australia provides about $1.7 million per year, half to education. Australia is also assisting Tuvalu to formulate and implement the Y2K problem strategy. In recent years, New Zealand aid has also shifted toward social and HRD areas, such as education, training, WID, and health. Taipei,China is financing the construction of the new government building for a total amount of $7 million. EU has funded solar photovoltaic systems in outer islands and an energy policy specialist. Presently, EU finances education, health and environment. The UNDP has sent a variety of UN volunteers to the country to build capacity, mainly in natural resources, finance and planning. UNDP is assisting Tuvalu to implement the Public Sector Reform Program, to establish a Business Advisory Unit and the Tuvalu Trade and Investment Agency, to develop Rural Development Program, and to Strengthen Local Governance¹. A summary of overall external assistance to Tuvalu is given in Appendix 2.

35. Efforts to coordinate donor support are important in a micro-economy like that of Tuvalu in order to avoid duplication. Such coordination is, however, constrained by the scarcity of donor representatives in Tuvalu. Country Programming Missions have gathered information on other donors' assistance programs from the Government and visiting officials from other agencies in Suva (Fiji). The preparation of the ADB IDP loan including the Trust Fund concept, was carried out in close coordination with other donors, mainly the main shareholders of the TTF (Australia, New Zealand, and UK). The proposed TMS enhancement will also need donors coordination. In fact, Australia is financing the TMS' Captain Superintendent position and the simulator; New Zealand is also financing a key position in TMS; and France is assisting the school with power supply.

36. Tuvalu is not a member of the World Bank or IMF². However, the Government has been receiving short-term advisory services from the Pacific Finance Technical Assistance Centre for the ongoing budget reform program and strengthening of national accounts, statistics, customs, taxation and banking supervision. The ADB has financed these assistance and training programs of the Centre through RETA as an adjunct to the ADB's country specific TAs.

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