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I. Development Situation
II. Country Strategy
III. Implementation of the Country Strategy and Program
IV. Portfolio Management Issues
V. Country Performance and Lending Level
Country Strategy and Program Update 2002-2004: Vanuatu

IV. Portoflio Management Issues

A. Portfolio Performance

34. Loan projects for the CRP ($20 million) and the Cyclone Dani Rehabilitation ($2 million) projects were implemented in 2000. The Urban Infrastructure Project ($10 million) is proceeding smoothly, with two major components (road sealing, Port Vila Wharf rehabilitation) completed and four underway. The whole project is expected to be completed by August 2001. The final tranche of the CRP loan for $5 million was released in mid-December 2000. A summary of the loan and TA portfolio performance indicators is in Appendix 3.

35. Out of the 13 existing TAs, 8 are active and 5 are completed and will be closed financially. ADB's portfolio of ongoing TAs are as follows:

  1. TA 3613: Capacity Building of the Legal Sector, for $330,000. This is the third ADB TA to SLO. The TA's objective is to help the Government with legal capacity building and law reform under the CRP by training SLO officials and providing legal advice to the Government. The TA will also set up a law information center that will provide awareness programs and free copies of laws to the public.
  2. TA 3366: Law Reform and Capacity Building, for $300,000. This is the second TA to SLO. The TA is almost completed and has tangible impacts.
  3. TA 2984: Institutional Support to Central Agencies for CRP, phase 1 for $630,000: The TA components comprise (i) national policy coordination and monitoring, (ii) good governance and public sector reform, (iii) economic and financial management reform, and (iv) development of leadership skills.
  4. TA 3449: CRP Sustainability, for $700,000. The TA supports five strategic objectives: (i) entrenching and deepening CRP reforms; (ii) strengthening leadership, policy design, and management skills of senior line agencies staff; (iii) monitoring CRP's benefits; (iv) improving the environment to attract private sector activities; and (v) strengthening the National Provident Fund's management information systems.
  5. TA-3198: CRP Information Dissemination and Reform, for $150,000. The TA's objective is to help the Government develop a strategic approach to the planning of information dissemination campaigns on the CRP's progress and achievements. The TA also supports the refining of national accounts by the Statistics Office.
  6. TA 3206: Rural Financial Services, for $250,000. The TA's objective is to assess various options and help the Government prepare an investment project to provide improved access to financial services and business and skills training.
  7. TA 3224: Outer Islands Infrastructure Development, for $750,000. The TA is to help the Government formulate the proposed outer islands infrastructure development project. The final phase of the TA is underway for engineering designs of selected subprojects.
  8. TA 2596-VAN: Urban Growth Management Strategy for Port Vila, for $600,000. The last inputs are underway to help finalize a draft Environment Act.

B. Counterpart Funding

36. The Government's provision of counterpart funds for loan and TA projects is sometimes affected by tight expenditure control caused by a limited revenue base. The Government's capacity to provide required funds must be strengthened, particularly for infrastructure projects. CRP tranche funds must also be used properly.

C. Monitoring and Evaluation

37. A social database has been established within the Statistics Office to tabulate all social indices on education, health, urbanization, etc. for use by planners. This initiative pioneered under the CRP is proving useful. NGOs are being helped to collect data and monitor the CRP's impacts. A TA was provided to the Vanuatu National Council of Women, for example, to monitor the impact of CRP on women's activities in the outer islands. Women were informed of the CRP's genesis and framework, and linkages to overall national planning. The presence of South Pacific Regional Mission in Vanuatu helps ADB closely monitor the projects such as the CRP, Urban Infrastructure Project, Cyclone Rehabilitation Project, and various TAs.


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