Countries and Regions

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p. 4 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 2005-2007: Fiji Islands, Republic of the

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IV. Portfolio Management Issues

A. Portfolio Performance

24. Since 1970, ADB has approved 15 loans to the Fiji Islands, amounting to $217.3 million as of 31 December 2003. These include three loans for road upgrading, two for ports development, three for the energy sector, three for agriculture and natural resources, two for development banks, one for low-income housing development, and one for water supply and sewerage. Currently, two loans are under implementation: the Third Road Upgrading Project (FRUP III) for $40.0 million, approved in August 1997; and the Ports Development Project for $16.8 million, approved in March 2002 (Appendix 2, Table A2.10). The Suva-Nausori Water Supply and Sewerage Project for $47.0 million was approved in December 2003, signed in August 2004, and is expected to become effective in September 2004. There are some significant delays in the implementation of the final international competitive bidding contract under FRUP III, and the Government has taken action to address the issue. The SPSO is expected to substantially improve ADB’s portfolio performance, including matters relating to implementation delays, covenant compliance, and disbursements.

25. Since 1970, 72 grant-funded TAs have been approved, totaling $23.1 million. As of July 2004, 12 TAs were ongoing, including capacity building and corporatization of water supply services, implementation of the urban sector strategy, intermediation of sugar sector restructuring, supporting economic management and development policies, implementation of an ICT strategy, strengthening of public sector financial governance, and strengthening of public sector banking and cash management. Implementation of ongoing loans and TAs is satisfactory.

B. Performance Monitoring and Evaluation

26. To improve results on the ground, ADB will monitor the national poverty reduction goals, including MDGs, by establishing clear key macroeconomic and portfolio performance indicators, and an effective monitoring mechanism that will be audited during various ADB reviews. ADB will also liaise with other development partners to harmonize results indicators to minimize duplication. With the prospect of a strong lending pipeline over the period 2005–2007, a full CSP will be prepared in 2005 with identified performance indicators for monitoring and evaluation.

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