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 2005-2006: Samoa

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IV. Portfolio Performance Issues

A. Ongoing Portfolio Performance

31. Three ADB-financed loan projects are being implemented: loans for the education sector¹⁵ and small-business development,¹⁶ both approved in 2000; and a loan for power sector improvement,¹⁷ approved in 2001. While implementation progress of the former two loans has accelerated, delay has been experienced in the latter. Nevertheless, project implementation is, overall, regarded as satisfactory. In November 2003, ADB approved the Sanitation and Drainage Project (footnote 7), the implementation of which is being initiated.

32. Implementation of the Education Sector Project has made solid progress since the second half of 2003. The project management team has been strengthened, civil works are progressing well, and in-service training of teachers in secondary schools is in an advanced stage of completion. Efficiency in coordination and cooperation between the implementing and executing agencies, as well as supporting government offices, is improving. While physical completion may be extended to the end of 2004, the loan is expected to be financially closed by the end of April 2005.

33. The Small Business Development Project is progressing satisfactorily. The pilot microfinance facility became effective in the last quarter of 2003, thereby complementing the ongoing small business loan guarantee scheme and enhancing the use of the associated small business development fund. In relation to the establishment of a credit bureau, as promoted under the TA, the Government is facilitating a private sector-led solution.

34. The Power Sector Improvement Project is behind schedule, due initially to the late appointment of consultants and, more recently, to the need for technical design changes, for which supplementary engineering studies and environment impact assessments were required. The cost increase resulting from the need for design changes will be met by EPC.

B. Performance Monitoring and Evaluation

35. Special units in the Ministry of Finance are responsible for monitoring and evaluating externally assisted development projects as well as the Government's development programs. Problems in terms of internal communication between executing, implementing, and supporting government agencies have had some negative impact on project implementation and, therefore, should be addressed. In this context, shifting responsibility for project execution from the Ministry of Finance to the sector agency concerned would make project management more efficient and allow the Ministry of Finance to focus on strategic issues. Such a transition would, however, need to be supported by targeted capacity building to allow ministries to undertake this role. The planned restructuring of the Ministry of Finance, essentially to separate traditional treasury functions from functions related to policy and strategy (including aid), promises to strengthen the ministry's focus and capacity to effectively and efficiently handle international aid projects.

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