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 2005-2007: Fiji Islands, Republic of the

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V. Country Performance and Assistance Levels

A. Proposed Lending Level

27. The 2004 program was confirmed with the Government. Based on the current processing timetable, the proposed Alternative Livelihoods Development Project will be processed for Board consideration in 2004 (Appendix 5, Table A5.1). The proposed Rural Electrification Project, the Airports Rehabilitation and Upgrading Project, and the Fourth Road Upgrading Project (FRUP IV) will be processed for approval in 2005. The proposed average lending program for 2005–2007 is estimated at about $40 million annually (Appendix 2, Table A2.11). Since the Fiji Islands is an ordinary capital resources borrower, commercial cofinancing and guarantee opportunities, and grants for poverty intervention and environmental protection will also be explored. The lending level is commensurate with the country’s sound macroeconomic fundamentals, absorptive capacity, and project implementation capabilities. In preparing the CSP, the focus will be selectivity of sectors to achieve economic growth and poverty reduction goals.

B. Nonlending Program

28. The nonlending assistance is focused, and covers project preparatory as well as advisory capacity-building TAs, and economic, thematic, and sector work. The confirmed TA program for 2004 includes one project preparatory TA for FRUP IV, and three advisory TAs for Strengthening Commercial Agricultural Development, Fisheries Sector Review, and Strengthening Public Sector Banking and Cash Management. An annual TA program of about $1.5 million is proposed for 2005–2007 (Appendix 2, Table A2.12).

C. Summary of Changes to Lending and Nonlending Program

29. There are some minor changes to the lending program. The proposed Alternative Livelihoods Development Project has been deferred to 2004 from 2003. The proposed Rural Electrification Project, the Airports Rehabilitation and Upgrading Project, and the FRUP IV will be processed for approval in 2005; the proposed Urban Sector Development Project is planned for 2006; and the Rural and Outer Islands Development Project has been moved to 2007.

30. There are also some minor changes to the sequencing of nonlending assistance. The following are planned: in 2004, one project preparatory TA for FRUP IV, and three advisory TAs, including one standby TA; in 2005, one project preparatory TA for Urban Sector Development, and five advisory TAs; and, in 2006, one project preparatory TA for Rural and Outer Islands Development and three advisory TAs.

31. For reference, the 2004 Assistance Program is provided in Appendix 5.

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