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 2004-2006: Uzbekistan

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III. Portfolio Management Issues

A. Portfolio Performance

21. From the start of assistance in 1996 upto 2002, ADB provided 15 loans amounting to $675.5 million from ordinary capital resources (OCR) and $20 million from the Asian Development Fund. During the same period, ADB extended TA amounting to $24 million for 42 projects. The disbursement ratio declined from 13.1% in 2001 to 9.9% in 2002 and was lower than the ADB-wide average of 22.2%. The contract award ratio increased to 11.4% compared with 5.6% in 2001. The percentage of projects classified "at risk" was 30.8% in December 2002 against the ADB-wide average of 16%.

22. Improvement in portfolio performance will require addressing the following persistent bottlenecks:

1. delays in loan effectiveness which is principally related to long periods it takes to issue government resolution/orders and other project-related documentation, establish PIUs, identify qualified staff, provide office space and facilities, and comply with loan effectiveness conditions;
2. limited capacity of executing and implementing agencies due to understaffing and the typical lack of delegation of authority in the administration;
3. complex internal government procedures and slow decision making, which can cause critical delays in routine project activities such as recruitment of consultants, procurement of goods, and disbursements; and
4. limited familiarity with ADB procedures.

23. Earlier concerns about the impact of cost-sharing limits on counterpart fund availability have been partially mitigated by the upward revision of cost-sharing limits applicable to Uzbekistan from 40% to 65%. ADB is currently reviewing the Group C classification of Uzbekistan.

B. Performance Monitoring and Evaluation

24. ADB monitors portfolio performance in Uzbekistan through regular country portfolio review missions and field-level project implementation supervision by sector divisions and URM. To date three projects and two TAs have been delegated to URM. Postevaluation of loan projects has not yet taken place since ADB's loan portfolio is relatively young.

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