Countries and Regions

	Table of Contents
p. 4 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 Levels

Country Strategy and Program Update 2005-2006: Solomon Islands

---

IV. Portfolio Management Issues

A. Ongoing Portfolio Performance

35. Following the payment of arrears by Australia in late 2003, one ADB-financed loan project is being implemented. ADB has reactivated the Post-Conflict Emergency Rehabilitation Project (footnote 2) to restore essential services, basic infrastructure, and facilities for communities affected or damaged during the civil strife between 1999 and mid-2000. Implementation restarted with the fielding of the project manager in March 2004. First tasks to be undertaken include revalidating the subproject selection list, recruiting counterpart staff, and establishing processes for design and build contracts. Implementation is on schedule.

36. While long completed in terms of project implementation, a TA loan⁶ to privatize SOEs has not been financially closed, as requirements for loan closing have not been met. Recognizing that resolution would greatly facilitate ADB's engagement in Solomon Islands, the Government is addressing this issue in the process of the ongoing financial stabilization efforts.

B. Performance Monitoring and Evaluation

37. MFNRP is responsible for preparing the Government's development programs and for monitoring and evaluating externally assisted development projects. Limited capacity in all branches of government, combined with the extensive range of externally supported interventions, could lead to problems with project implementation. Assigning responsibility for project execution from MFNRP to the sector agency concerned would make project management more efficient and allow MFNRP to focus on strategic issues. ADB capacity-building TA (for example, the institutional strengthening project in MID) will support the transition for line ministries to undertake this role.

Back III. Implementation of the Country Strategy and Program	Next V. Country Performance and Lending Levels