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p. 28 of 39 BACK | NEXT Introduction Bankwide Project Implementation Performance Country Implementation Highlights Bangladesh Bhutan Cambodia China, People's Republic of India Indonesia Kazakhstan Korea, Republic of Kyrgyz Republic Lao, People's Democratic Republic Malaysia Maldives Mongolia Myanmar Nepal Pakistan Philippines Pacific Developing Member Countries Cook Islands Fiji Islands Kiribati Marshall Islands Micronesia, Federated States of Nauru Papua New Guinea Samoa Solomon Islands Tonga Tuvalu Vanuatu Sri Lanka Tajikistan Thailand Uzbekistan Viet Nam Appendix

Seminannual Report on Project Administration and Technical Assistance Implementation for the Period Ending 30 June 1999 : Country Implementation Highlights : Pacific Developing Member Countries

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Papua New Guinea

The number of ongoing loans remained at 11, with no loans approved or closed during the period. One loan approved in December 1998 was declared effective during the period. Another one was signed but has not yet been declared effective. Portfolio performance improved during the period, with the number of unsatisfactory loans reduced from four in 1998 to one in terms of implementation progress and another one in terms of achieving development objectives. Four loans underwent five changes in scope. Two also underwent changes in implementation arrangements during the period, with the change being major for one. Several ongoing projects have suffered delays. The problems faced ranged from a shortage of experienced personnel, insufficient counterpart funds, cumbersome administrative procedures, and land acquisition difficulties to law-and-order problems and lack of interagency coordination. Moreover, changes in leadership positions and key personnel disrupted the functioning of several departments, leading to delays in decision making, including those concerning implementation.

The level of public expenditure was sustained, which helped maintain health service deliveries in the rural areas. Implementation of the actions specified under the sector development program loans in the health sector improved management information, resulting in improved service efficiency. The Bank's actions to cancel nonperforming components so as to improve the impact of the projects continued during the period. The Bank reemphasized the importance of strict compliance with procurement procedures and anticorruption requirements. Financing of two contracts was refused by the Bank where the award was not made in accordance with the Bank's procedures. The recently approved extended mission in Port Moresby will soon open and is expected to contribute significantly to improved portfolio management.

Contract awards of $2.3 million were 43 percent of the semiannual projection of $5.2 million but only 18 percent of the annual projection of $12.3 million, reflecting the slow progress in implementation. Similarly, disbursements of $2.4 million were 41 percent of the semiannual projection of $5.8 million and 25 percent of the annual target of $9.6 million. These levels continued the deteriorating trend. There were no disbursements from program loans. The disbursement ratio also deteriorated from 18.0 percent as of 30 June 1998 to 3.0 percent during the period for the same reasons. As a result, net resource transfer declined from $4.8 million at 30 June 1998 to a negative $11.1 million as of 30 June 1999.

Perennial problems related to submission of audited project accounts and financial statements received continued follow-up. Compliance was achieved for only one of eight loans due for submission, and submissions for five were delayed for six months. For two other loans, the accounts for one were delayed by more than six months, and for the other by more than 12 months.

Compliance with the environmental covenants was ongoing for nine loans and was not applicable to the two others. Compliance with the social covenants for the 11 ongoing loans was also ongoing. Tables 63 and 64 summarize the data for Papua New Guinea.

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