Regions and Countries

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p. 3 of 4 BACK | NEXT I. Development Situation II. Implementation of the Country Strategy and Program III. Portfolio Management Issues IV. Country Performance and Lending Level

Country Strategy and Program Update 2002-2004: Samoa

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III. Portfolio Management Issues

A. Portfolio Performance Implementation

50. Three ADB-financed loan projects are currently being implemented, including two loans approved in 2000, for the education sector (footnote 5) and small business development (footnote 3). The third loan, for the financial sector (footnote 4) has been in implementation since 1998. Overall, the Education Sector Project is off to a good start. The project management office has been established, the project management team has been hired and is operating, and project development activities are under way. Tendering for civil works for the first subproject (Falefitu Primary School) has been completed and construction is scheduled to start shortly.

51. The Loan Agreement for the Small Business Development Project was signed on 6 March 2001 and became effective on 8 June 2001. The Government remains fully committed to the smooth and efficient implementation of this project.

52. In February 1998, ADB approved the FSPL for $7.5 million equivalent. The FSPL supports the development of a market-based financial sector system that will broaden participation, increase domestic resource mobilization, and promote efficiency in resource allocation. The program also aims at privatizing, corporatizing, and enhancing the efficiency of SOEs and utilities, and helping to promote private sector-led economic growth and employment generation. The loan became effective on 1 June 1998 and the first tranche of $4.0 million was released immediately thereafter. The second tranche of $3.5 million was expected to be released in February 2000; however, delays were encountered in meeting some of the conditions for release of the second tranche. The Government has substantially met most of the key conditions except for two: (i) formalization of an agreement between the CBS and Samoa's Treasury Department regarding the cost implications of the issuance of CBS bills; and (ii) finalization of divestment of Government shares in the remaining 2-3 SOEs and ratification by Parliament of the associated legislation such as the Company's Bill 2000, SOE Bill and Regulations, and Public Finance Management Bill. The Government is committed to meet the remaining conditions by June 2001. (See Appendix 4 for portfolio performance indicators.)

B. Counterpart Funding

53. Since 1998, the Government has adopted and implemented a sophisticated output-based performance budgeting system. This allows them to exert better and more efficient control and monitoring of Government expenditures, including provision of counterpart funding for externally assisted projects. No problems are related to counterpart funding in Samoa at this time.

C. Monitoring and Evaluation

54. Under the ADB-financed TA for macroeconomic planning, management and policy formulation (footnote 8), special emphasis has been placed on sector and project planning and programming. Special units in Samoa's Treasury Department are responsible for monitoring and evaluating externally assisted development projects, as well as the Government's own development programs.

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