Regions and Countries

	Table of Contents
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 Lending Level

Country Strategy and Program Update 2005–2006: Kiribati

---

V. Country Performance and Lending Level

A. Proposed Lending Level

39. The allocation of the Asian Development Fund will depend upon the revised performance-based allocation policy, expected to be finalized later in 2004. For planning purposes, the 3-year allocation has been set at US$10 million, but this will be subject to change based on the revised performance-based allocation policy. There is no lending program for 2005.

B. Nonlending Program

40. An indicative nonlending assistance of US$2.4 million, or an annual average of US$800,000, is programmed for 2005–2006. The current nonlending assistance pipeline continues to focus on promoting good governance, enhancing social development, and creating the conditions for pro-poor economic growth, especially in potential growth centers. This program may be modified based on performance as the operational cycle unfolds. The assistance pipeline for nonlending products and services is given in Table A2.12 of Appendix 2. The TA concept papers are in Appendix 3.

C. Summary of Changes to Lending and Nonlending Program

41. There is to be a significant shift in government strategies, toward a more decentralized or deconcentrated model of development that would see priority given to growth centers in which key government services and infrastructure would be concentrated. In part, this shift in strategic thinking underpins a Cabinet decision in late 2003 not to proceed with the proposed Outer Islands Development Program and its associated trust fund mechanism, which reflected the perceived lack of economic opportunities on most outer islands. The clear need to reverse the urban drift to South Tarawa (where almost half of the population is now concentrated) underpins this shift in strategies.

42. For reference, the 2004 assistance program for nonlending products and services is provided in Table A4.1. There is no assistance program for lending products for 2004.

Back IV. Portfolio Management Issues	Country Strategy and Program Update 2005–2006: Kiribati