Countries and Regions

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p. 4 of 6 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 Lending Levels Appendixes

Country Strategy and Program Update 2005-2006: Federated States of Micronesia

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IV. Portfolio Management Issues

A. Portfolio Performance

30. Since joining ADB in 1990, FSM has received six loans in the total amount of $56.6 million, of which four were active at the end of 2003. It has also received 39 technical assistance grants in the total amount of $21.8 million, of which nine TAs are solely funded by the Japan Special Fund (JSF) ($5.2 million), one partly funded by JSF ($1.5 million), and four through other financing ($2.7 million).

31. Contract awards in FY2003 totaled $2.8 million, bringing the cumulative figure to $34.48 million. The contract award ratio was 11.7%, lower than the ADB-wide average of 17.3%. Disbursement during the year totaled $2.7 million, bringing cumulative disbursement to $33.9 million. The disbursement ratio was 11.7%, lower than the ADB-wide average of 20.2%.

B. Performance Monitoring and Evaluation

32. Based on the latest economic performance evaluation by ADB, FSM’s overall rating is slightly lower than the PDMC average. The main macroeconomic issues are management of the public sector budget, the need to raise more local revenue, and development of the private sector. A more effective governance framework is also needed for public enterprises, including regulatory arrangements for monopolies. Public enterprise reform has been the weakest of all elements of the reform agenda.

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