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 2003-2005: Tuvalu

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IV. Portfolio Managemente Issues

A. Portfolio Performance

37. Since joining ADB in 1993, Tuvalu has received 1 program loan, 1693-TUV(SF): Island Development Program, for $4 million and 13 TAs - 4 project preparatory TAs (PPTAs) and 9 advisory and operational TAs (AOTAs) - totaling $3.336 million. Only one PPTA and two AOTAs for $1,150,000 were active at the end of 2001. The program loan was closed on 19 July 2001. In 2001, the second and final tranche of $1.17 million of the program loan was disbursed according to schedule, on par with the first tranche release in 1999 of $2.8 million. All the active TAs are performing satisfactorily.

38. It is noteworthy, that, of the four PPTAs, only one loan was approved and another will be considered in 2002. This could be an indication of overoptimistic program planning with respect to feasible loans for Tuvalu. With a population as small as Tuvalu's, an extremely narrow resource base, and a miniscule embryonic private sector, more frequent policy dialogue between ADB and the Government is recommended to avoid identification of possible loans with little chance of implementation.

B. Performance Monitoring and Evaluation

39. The program loan has its own monitoring system, primarily through its accompanying TA. However, there are indications that when international consultants step back, the monitoring, evaluation, and interpretation of the project data are accorded low priority and subsequent analyses are not carried out. Whether this is a result of poor counterpart training or is more related to frequent staff rotation and absenteeism due to awards of scholarships abroad is an issue that needs to be monitored.

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