Countries and Regions

	Table of Contents
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 2005-2006: Samoa

---

V. Country Performance and Assistance Levels

A. Lending Level Proposed

36. As a result of political stability, determined leadership, and solid performance, especially in the areas of macroeconomic and fiscal management, financial sector liberalization, and public sector reforms, Samoa has achieved a relatively high level of sustainable economic growth and human development. Nevertheless, the reform agenda remains long, and issues related to the access to and quality of basic social services, as well as private sector development, will continue to require attention. The achievement of all eight MDGs should be a top priority.

37. The allocation of the Asian Development Fund (ADF) will be determined under the revised Performance Based Allocation policy (in process). For planning purposes, the 2-year allocation for 2005-2006 has been set at $15 million (Appendix 2), but this will be subject to change based on the revised Performance Based Allocation policy. For 2005-2006, two firm loans have been programmed for education ($5 million) and energy ($10 million). Concept papers for the lending program in 2005 are in Appendix 3.

B. Nonlending Program

38. Nonlending assistance for 2005-2006 focuses on the two strategic pillars of the ADB strategy-namely, to enhance access to, and quality of, basic social services, and to improve the environment for the private sector. In 2005, the nonlending program will help build capacity in the education sector, support the implementation of the renewable energy loan, and study options for land mobilization and securitization. In 2006, TA will assist in deepening SOE reforms and privatization efforts, as well as implementing EPC reforms. The nonlending program is shown in Appendix 2 and concept papers for 2005 in Appendix 4.

C. Summary of Changes to Lending and Nonlending Program

39. Given the slippage, from 2004 into 2005, of the loan for the Education Sector Project II, and due to the substantive loan program in 2005, ADF resource constraints, and government absorptive capacity constraints, ADB will postpone the proposed loan for Sanitation and Drainage II from 2006 into 2008 (standby 2007). Associated TAs have been adjusted accordingly.

40. The proposed advisory TA for Land Mobilization and Securitization has slipped from 2004 into 2005. Two new small-scale TAs have been included in the 2004 Program: (i) TA for the Preparation of the Education Policy and Strategic Plan 2006-2014; and (ii) TA for Privatization Support. An additional TA for Supporting SOE Reforms and Privatization has been programmed for 2006.

41. For reference, the 2004 Assistance Program for Nonlending Products and Services is shown in Table A.5.1. No loan was provided in 2004.

Back IV. Portfolio Management Issues	Country Strategy and Program Update 2005-2006: Samoa