Regions and Countries

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p. 5 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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V. Country Performance and Assistance Levels

A. Nonlending Program

29. In the absence of loan financing in the medium term, the nonlending program will be the major vehicle for delivering ADB’s country strategy. Flexibility will be important so ADB can respond to reform opportunities and complement grant resources of other agencies, especially in infrastructure. The proposed program assumes that existing donor partnerships can be continued and harmonization efforts enhanced. The country specific allocations have been derived on the basis of the results of the 2005 country performance assessment (CPA) exercise (see Table 2.13, Appendix 2 for CPA Ratings), after applying the performance–based assessment formula. The Asian Development Fund (ADF) allocation for Solomon Islands includes ADF grant support of $600,000 for 2007-2009.²⁴ An infrastructure investment project has been programmed for 2009 combining the full three-year allocation ($1.8 million). This project could be advanced, if MID’s absorptive capacities can be strengthened and grant cofinancing attracted.

30. To streamline its portfolio, and because of its narrow strategic program focus and limited government capacity, ADB will seek to limit its nonlending program to one new multi-year TA project per annum. Subject to availability of core TA resources, ADB will provide about $1 million annual TA support during the 2007–2009 period. In 2007, ADB will begin the MID Technical Support Program, a multi-year TA project to support the development of MID as a planning, contracting and asset management agency. In 2008, ADB will provide a TA project to improve the legal business environment through the medium- to long-term business law and regulatory reform agenda. There will be no new TA project in 2009 as the allocation for 2009 will have been advanced to the MID Technical Support Program in 2007. To complement the TA program and leverage scarce TA resources, ADB will include Solomon Islands in regional TA (RETA) activities where feasible. A table summarizing the nonlending program is in Table A2.11, Appendix 2 and TA concept papers are in Appendix 5. Cost sharing arrangements for these parameters will be in accordance with arrangements in place as of 25 August 2005.²⁵

B. Summary of Changes to Lending and Nonlending Program

31. A TA for private sector participation, originally programmed for 2007, has been dropped and replaced with the MID Technical Support Program. One new TA has been included in the 2008 program for Improving the Legal Business Environment, and an ADF grant for infrastructure investment has been added in 2009. A summary of changes in the nonlending program is in Table A4.3.

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