Countries and Regions

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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 2006–2008: Maldives

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Country Performance and Assistance Levels

A. Proposed Lending Level

35. The Regional Development Project (Phase II, $6 million, Asian Development Fund [ADF]) was approved in April 2005. The proposed project for the Domestic Maritime Transport ($6 million, ADF) is standby in 2005 and firm in 2006. Indicative lending of $6 million per year is tentatively programmed for 2006–2008 for the Maldives. However, the proposed Asian Development Fund lending is subject to the outcome of the annual performance-based allocation. This consists of four firm projects (Domestic Maritime Transport Project, Development of SME in the Atolls, Islands Electrification Phase II, and Commercialization of Agriculture) and one standby project (Infrastructure for Regional Development), and is consistent with the priorities identified in ADB’s 2002 CSP. The Government is preparing the 7NDP for 2006–2010, and subsequently ADB will prepare the CSP for the Maldives in 2007.²¹ For reference, the 2005 assistance program for lending products and nonlending products and services is provided in Table A4.1 and Table A4.2, respectively.

36. The proposed Development of SME in the Atolls Project will support activities such as financing, market accessibility plans, and entrepreneurial training to contribute to the Government’s pro-poor growth initiatives. The Islands Electrification Project (Phase II), a followon project to the ongoing Outer Islands Electrification Project, will focus on providing electricity to selected islands not covered by the current project. The Commercialization of Agriculture Project will support the development of agriculture as new income generating activities in the atolls. The Social Infrastructure for Regional Development Project, a follow-on project to the Regional Development Project (Phase II), will continue to focus on community development, as well as improvements in water supply, sanitation, solid waste management, and land management.

B. Nonlending Program

37. Indicative nonlending assistance of $3 million, or an annual average of $1 million, is programmed for 2006–008. The current nonlending assistance pipeline focuses on project preparation, human resources development (especially for the atolls), and good governance.

C. Summary of Changes to Lending and Nonlending Program

38. Several pipeline projects have shifted for 2006–2008. The Domestic Maritime Transport Project has slipped and is standby in 2005 and firm in 2006. The Development of SME in the Atolls Project is standby in 2006 and firm in 2007. The Islands Electrification Project (Phase II) has been postponed to 2007, and its project preparatory TA is in 2006. The Development of Credit Schemes in the Atolls technical assistance in 2006 has been renamed Assistance for SMEs Development in the Atolls to be piggybacked to the proposed loan under the same project title. A new advisory TA for the capacity development diagnostic study is included in the 2007 nonlending program.

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