Regions and Countries

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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 - Vanuatu : I. Country Performance Assessment

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E. Implementation Assessment

1. The Portfolio

19. ADB has approved nine Asian Development Fund (ADF) loan projects totaling $51.25 million to Vanuatu since it achieved independence in 1980. Six of these loans have been closed and three are ongoing. Total cumulative disbursements as of end 1999 totaled $35.11 million or 70.4 percent of the total available for withdrawal. ADB has also provided 40 technical assistance grants totaling $10.7 million. Thirty-one of these have been closed and nine are ongoing. Nine of these were for project preparation, while the rest were advisory. The completed loan projects have been in the infrastructure, financial institution, agriculture, and multiproject sectors. The three major ongoing loans are the Urban Infrastructure Project, the Cyclone Rehabilitation Project, and the Comprehensive Reform Program.

2. Issues in Project Implementation

20. To date, project completion reports have been prepared for six loans to Vanuatu, of which three have been post-evaluated (Appendix 2, page 1). Lessons learned include the need to give priority (in infrastructure projects) to preparation of high-quality feasibility studies and detailed designs; (in financial institution projects) to institutional arrangements that enable the institutions to be capable of operating, maintaining, and funding the facilities constructed.:

21. The post-evaluation study of the loan for the Development Bank of Vanuatu (DBV) indicated that implementation was only partly successful because of frequent changes of senior staff, a major decrease in copra prices in 1986, a devastating cyclone in 1987, and political unrest in early 1988. The study emphasized that traditional social structures such as families, village committees, and savings unions should be used effectively in the loan recovery process. These lessons have been incorporated into the design of the more recent, ongoing project loan assisting the DBV, along with associated technical assistance for institution building.

22. The post-evaluation study of the loan for agriculture extension and training concluded that the project was only partly successful in achieving its original objectives to strengthen the link between agriculture station-based research and on-farm application. The project performance audit report for the Multi-project was completed in 1996, and the project was rated unsuccessful except for the education component. The lessons learned revolved around institutional capability, chronic staff shortages, socio-cultural mechanisms, and the need for a better coordination system. These lessons are now being taken into account in the design of ADB's loan and technical assistance operations in Vanuatu.

23. In addition to these reports, a special assessment of ADB's advisory technical assistance operations in Vanuatu was undertaken in 1996. Its main conclusion was the need to encourage or ensure Government ownership of technical assistance goals.

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