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Annual Report 2003 : Moving the Poverty Reduction Agenda Forward: Priorities and Outcomes : The Pacific

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Tonga

Strategy and Policy Dialogue.
ADB’s strategy focused on improving the efficiency of public services and on support for economic and public sector reforms, particularly of public enterprises. To encourage private sector development, the Government initiated a program to retain ownership of only those public enterprises that provide basic services.

Legislation endorsed economic and public sector reforms aimed at improving the efficiency of public services and creating an enabling environment to encourage private sector growth. Dialogue focused on extending reforms to public enterprises and government commercial activities to create an appropriate regulatory regime for public utilities (energy, water, telecommunications, and transport) and on considering a timetable for privatizing certain government-owned businesses. The need for sustained political commitment and direction in ensuring reforms was stressed.

Loans and Technical Assistance.
No loans were approved in 2003. Three technical assistance projects totaling $915,000 were approved.

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