Countries and Regions

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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 Assistance Levels

Country Strategy and Program Update 2007-2009: Solomon Islands

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IV. Portfolio Management Issues

A. Portfolio Performance

27. ADB’s country portfolio, comprising five TAs and one loan, is progressing satisfactorily overall considering the difficult operating environment. Implementation of the Post-Conflict Emergency Rehabilitation Project loan has been appreciated locally, and has attracted significant additional grant cofinancing. TA projects for institutional capacity building for infrastructure and interisland-shipping are progressing satisfactorily, although those for airline privatization and SOE reform have not progressed. There is still concern about lack of political commitment to reform and lack of capacity in counterparts (despite some progress in the past 12 months). The risk of unsuccessful delivery of assistance, and therefore of not achieving development outcomes, has been higher than anticipated and lessons will have to be taken into consideration in the design of future assistance. ADB’s continued narrow strategic focus should help engage key stakeholders and to develop capacity.

B. Performance Monitoring and Evaluation

28. Limited capacity in all branches of Government, combined with extensive aid interventions, have exacerbated problems in the Government’s aid planning, management and coordination. The Ministry of Finance and National Planning (MFNP) is responsible for preparing the Government’s development programs and for monitoring and evaluating externally assisted development projects. National planning and aid coordination, including the link between development and recurrent budgets, are being strengthened with donor support. The Department of Finance and Treasury, MFNP, is ADB’s main counterpart for strategy and programs. It also plays a role in project level through the Economic Reform Unit (ERU), although ADB is increasingly assigning responsibility for project execution to the sector agencies concerned (MID and the Ministry of Commerce), to improve project management and allow MFNP to focus on strategic issues. Capacity development will enable line ministries to undertake their proper role. ADB will continue to monitor the program’s implementation progress and related issues closely, and may adjust the program in the course of the programming cycle.

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