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Countries and Regions Country Partnership Strategies Document
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Country Strategy and Program Update 2003-2005: Samoa
V. Country Performance and Assistance LevelsA. Lending Level Proposed28. The baseline rolling 3-year lending allocations for Samoa based on country performance indicators, per capita income, and population is $15.8 million for 2003-2005. The proposed lending program for Samoa for the period is presently $22 million, including a standby loan of $10 million in 2005 for the Savaii Hydro Power Project. 29. As a result of its good performance in macroeconomic management; trade and foreign exchange policies; financial sector liberalization; and sound, socially inclusive development policies, Samoa has achieved a relatively high level of sustainable economic growth and human development. However, a number of issues require attention, particularly in the areas of further tariff and tax reform, land reform, and improvement in the management and governance of public sector enterprises. The key parameters determining the level of Asian Development Fund assistance will include continued progress on economic management, and public sector reform. Accordingly, three lending scenarios have been defined. The base case scenario is for an allocation of $15.8 million in the 2003-2005 period. While the lower case and upper case scenarios for the same period are $11.0 million and $20.5 million, respectively (Appendix 2, Table A2.8). 30. For 2003-2005, three loans have been programmed, at an average of $7 million per year including a standby loan of $10 million in 2005 for the Savaii Hydropower Project. This represents a possible overprogramming of 30% above the base case scenario for the period, but is generally consistent with the high case scenario. Lending levels will be monitored closely and will be adjusted to reflect the country performance indicators and absorbtive capacity of Samoa (Appendix 2, Table A2.9) B. Nonlending Program31. In addition to project preparation technical assistance, the nonlending assistance for the period of 2003-2005 focuses on all three pillars of the ADB strategy for Samoa. The nonlending program will assist in capacity building for sound economic and public sector management through the implementation of the Public Finance Management Act. It will assist in improving living standards through capacity building for youth development and will continue to support improved management and efficiency of state-owned enterprises through assistance in management of sewerage systems, and hydropower generation. The TA program for the period totals $1.8 million for five identified TAs (Appendix 2, Table A2.10). C. Summary of Changes to Lending and Nonlending Program32. A number of minor changes to the proposed program of assistance to Samoa were discussed with the Government. Regarding the loan program (i) the loan for the proposed Sewerage and Drainage Project, which was initially planned for 2002, has been deferred to 2003 to allow more detailed preparation; (ii) the loan for Education and Youth Development was deferred to 2004; and (iii) the Savaii Hydropower Project, which was on the program as a standby loan for 2004, has been deferred to 2005. In the TA program (i) a new TA for Implementation of the Public Finance Management Act has been included in the program for 2003, (ii) the Project Preparatory TA for Education and Youth Development has been postponed to 2003; and (iii) a new Advisory TA has been included in the program for 2003 for capacity building in the management of sewerage systems. Concept papers for lending and nonlending products are attached in Appendixes 3 and 4, respectively.
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