Regions and Countries

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p. 4 of 4 BACK | NEXT I. Current Development Trends and Issues II. Implementation of the Country Strategy and Program III. Portfolio Management Issues IV. Country Performance and Assistance Levels

Country Strategy and Program Update 2005–2006: Maldives

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IV. Country Performance and Assisitance Levels

A. Lending Level Proposed

27. Indicative lending of $6 million per annum is tentatively programmed for 2005-2006 for the Maldives. However, proposed ADF lending is subject to the outcome of annual performance-based allocation and the availability of resources from ADF IX. The proposed lending program for 2005-2006 consists of two firm projects (transport infrastructure development, and islands electrification project [Phase II]) and one standby project (development of SMEs in the Atolls). The proposed program is consistent with the priorities identified in 6NDP, and with ADB’s 2002 CSP and PRPA. For reference, the 2004 assistance program for lending products and nonlending products and services is provided in Table A5.1 and Table A5.2, respectively.

28. The transport infrastructure development project will assist the Government to spur the economy and improve access to social services in the atolls by establishing an inter-island transport system. The island electrification project (Phase II) is a follow-on project on the ongoing Outer Islands Electrification Project, and will focus electrifying the islands not covered by the ongoing project. The project for the development of SMEs in the atolls will support activities such as financing, market accessibility plans, and entrepreneurial training to contribute to the Government’s pro-poor growth initiatives.

B. Nonlending Program

29. An indicative nonlending assistance of $2 million, or an annual average of $1 million, is programmed for 2005-2006. The current nonlending assistance pipeline continues to focus on project preparation; human resources development, especially for the atolls; and good governance.

C. Summary of Changes to Lending and Nonlending Program

30. There is no change for the firm lending program for 2005 and 2006. The economic, thematic, and sector work ADTA for the Human Resources Development Master Plan for 2005 has been dropped since the Government is incorporating it in the integrated human resource development project financed by the World Bank. The ADTA for the development of credit schemes in the atolls has been deferred to 2006 because the effectiveness of Loan 1915: Strengthening of the Public Accounting System has been delayed. The processing of the PPTA for the islands electrification (phase II) in 2005 will depend on smooth implementation of outer island electrification (I) which has been experiencing an initial delay of 1 year. The PPTA for the development of SMEs in the Atolls has been advanced from 2006 to 2005, with the loan on standby for 2006. The 2006 TA for the housing support for regional development has been renamed social infrastructure support for regional development. Subject to positive results and recommendations of the 2004 ADTA for the commercialization of agriculture, a PPTA under the same title has been included in 2006 TA program.

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