Countries and Regions

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p. 5 of 5 BACK | NEXT I. Country Strategy II. Current Development Trends and Issues III. Implementation of the Country Strategy and Program IV. Portfolio Management Issues V. Country Performance and Assistance Levels

Country Strategy and Program Update 2003-2005: Fiji Islands, Republic of the

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V. Country Performance and Assistance Levels

A. Lending Level Proposed

1. Loan Program

30. Consistent with the Fiji Islands' developmental needs, based on the priorities in the country strategy, and recognizing ADB's strategic emphasis on promoting economic growth and improving the quality of life, the lending program will focus on economic growth and poverty reduction by (i) generating jobs and increasing incomes from faster and broad-based pro-poor economic growth, (ii) improving basic infrastructure in the major islands of the country to enhance quality of life, and (iii) creating a conducive environment for private sector growth. The scope of the country program is to focus on agriculture and natural resources, transport, rural energy, water supply and sanitation, and urban development.

31. The 2002 program was reconfirmed with the Government. Based on the current processing status, in addition to the approved Ports Development Project for US$16.8 million, the Suva-Nausori Water Supply and Sewerage Project for about US$40.0 million will be processed for approval in 2002. During 2003-2005, the Fiji Islands will need sizable investment to support its development goals. Based on the Government's priorities, and considering that the Fiji Islands did not borrow from 1997 to mid-2002, the proposed lending is estimated at US$40 million-50 million annually (Appendix 2). Since the Fiji Islands is an ordinary capital resources borrower, commercial cofinancing and guarantee opportunities, and grants for poverty intervention from donors will also be explored. Cofinancing from domestic banks is expected to remain substantial. The lending level is commensurate with the economy's sound macroeconomic fundamentals, absorptive capacity, and satisfactory project implementation.

2. Technical Assistance Program

32. The TA program is focused on institutional strengthening and capacity building to develop effective sectoral, institutional, and regulatory frameworks, and project preparation. The advisory TA program for 2002 includes two project preparatory TAs (alternative livelihoods and rural electrification) and two advisory TAs (intermediation of sugar sector restructuring and institutional strengthening in water supply and sewerage management) for US$2.0 million. An annual TA program of about US$1.5 million-2.0 million is proposed for 2003-2005, with at least 50% of TA funds allocated for project preparation. Regional TAs will involve other regional institutions based in the Fiji Islands (South Pacific Applied Geoscience Commission, Forum Secretariat, Pacific Financial Technical Assistance Centre, etc.).

B. Summary of Changes to Lending and Nonlending Program

33. As a result of the coup in 2000, no country programming was undertaken in 2001. The 2002 country program reflects the country's priorities. There is no change in the 2002 loan processing but for 2003, an alternative livelihood project is proposed in place of one for sugar industry rehabilitation, and a rural electrification project has been included. The community-based tourism project is deferred from 2003 to 2004. An airports upgrading project has been included in 2004, and an outer island small infrastructure development project and a low-income housing project have been included in 2005.

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