Countries and Regions

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p. 3 of 4 BACK | NEXT I. Current Development Trends and Issues II. Implementation of the Country Strategy and Program III. Portfolio Management Issues IV. Country Performance and Assistance Levels

Country Strategy and Program Update 2006-2008: Tajikistan

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III. Portfolio Management Issues

A. Portfolio Performance

26. Since Tajikistan became a member of ADB in 1998, 17 loans have been approved, amounting to $244.3 million. These were provided at concessional terms from ADF. As of 31 December 2004, 3 loans have closed, 3 are awaiting effectiveness, and the remaining 11 are at various stages of implementation. Cumulative contract awards amounted to $74.3 million and disbursements to $46.3 million as of the end of 2004. Contract awards during 2004 were $30.9 million (86% of the projected $35.9 million) and disbursements were $19.6 million (72% of the projected $27.3 million)—a significant improvement over 2003, when the contract awards were 43% and disbursements 54% of annual projections.

27. The general performance of the Tajikistan portfolio is satisfactory. Of the 14 active loans, 2 are “at risk” as of date. The Microfinance Systems Development Project⁸ is “at risk” on account of delays including in establishing the project management office. A detailed action plan has been drawn with the executing agency to resolve pending issues. The second loan, the Regional Power Transmission Modernization Project⁹ is rated unsatisfactory due to issues related to the Power Trade Agreement.

B. Performance Monitoring and Evaluation

28. After the first country portfolio review mission to Tajikistan, conducted jointly with the World Bank in March 2004, action plans were formulated in consultation with the Government to improve performance of the portfolio by periodically monitoring it through the Tajikistan Resident Mission. Since then, the Resident Mission has been holding quarterly portfolio review meetings with the Government, and progress has been made in solving key problems. In 2005, ADB and the World Bank fielded the second joint country portfolio review mission to Tajikistan. A joint issues paper and action plan was prepared using harmonized terminology. Four core issues that are critical to portfolio performance and that incorporate the relevant commitments from the Paris Declaration on Aid Effectiveness were identified and addressed. In addition, the Resident Mission and the Government have agreed to revise the action plan of the 2004 country portfolio review mission so that key portfolio issues are addressed effectively and in time.

29. Tajikistan is the first country where ADB began, in 2005, block-auditing of its projects. Under such arrangements, auditing of ADB loans and JFPR projects will be done by one auditing firm, selected in accordance with ADB procedures. The objective of such auditing arrangements is to minimize auditing costs and to enable the auditor to express a professional opinion on the financial position of the project at the end of the fiscal year in a uniform and consistent manner. The audits undertaken will be in accordance with international auditing standards.

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