The proposed program will support the Government's efforts to improve its fiscal performance and the enabling environment for the private sector and facilitate the funding of essential services over the medium- to long-term as phosphate reserves are exhausted.
|Project Name||Public Financial Management Reform Program|
|Project Type / Modality of Assistance||Grant
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
|Sector / Subsector||
Public sector management / Public expenditure and fiscal management
|Gender Equity and Mainstreaming||Effective gender mainstreaming|
|Description||The proposed program will support the Government's efforts to improve its fiscal performance and the enabling environment for the private sector and facilitate the funding of essential services over the medium- to long-term as phosphate reserves are exhausted.|
|Project Rationale and Linkage to Country/Regional Strategy||
The decline in phosphate exports since the late 1990s has meant that there has been no real growth in the Nauruan economy for over a decade. Primary phosphate reserves are estimated to be enough for 1-2 years of production, and deeper, secondary reserves might last 20 years. An intergenerational trust fund (ITF) is being established with ADB assistance so that income from phosphate mining can be saved for when the reserves are exhausted. Full exploitation of the phosphate resource, however, requires considerable investment to refurbish the necessary infrastructure. Improved governance, especially of the SOEs that dominate the economy, is also needed to encourage the public and private investment required. The Government has requested that the program grant be used as seed funding for the ITF.
The Nauru government's current PFM strategies are based on a desire to avoid a repeat of the prior practices in the 1980s and much of the 1990s that severely undermined the government's fiscal position and the Nauruan economy. While some progress has been made since 2004 in improving the quality of PFM compared with that prevailing previously, there are a considerable number of outstanding issues to be addressed to achieve a more satisfactory overall standard. A major improvement is also required in the financial performance and governance of Nauru's major SOEs. The NUA received a fuel subsidy of approximately A$6 million in FY2010 and blackouts/brownouts were common in early 2011. The poor dividend performance of RonPhos, the phosphate export company, has also been a strain on government finances.
|Impact||Support the government's longer-term development objectives of accelerated, sustained, and inclusive economic growth|
|Description of Outcome||Sustainable social protection to the population.|
|Progress Toward Outcome|
|Description of Project Outputs||
Improved public financial management
Support for the vulnerable
Improved corporate governance of state-owned enterprises
|Status of Implementation Progress (Outputs, Activities, and Issues)||The second tranche was released 3Q 2014, has seven conditions in three output areas: (i) stronger public financial management, (ii) more rigorous corporate governance and economic performance of selected SOEs, and (iii) a comprehensive legal and policy framework for equitable access to social services.|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Responsible ADB Officer||Everett, Hayden B.|
|Responsible ADB Department||Pacific Department|
|Responsible ADB Division||Pacific Liaison and Coordination Office in Sydney, Australia|
Ministry of Finance
|Concept Clearance||30 Jan 2012|
|Fact Finding||01 Feb 2012 to 08 Feb 2012|
|MRM||14 Jun 2012|
|Approval||09 Aug 2012|
|Last Review Mission||-|
|Last PDS Update||26 Nov 2014|
|Approval||Signing Date||Effectivity Date||Closing|
|09 Aug 2012||14 Sep 2012||27 Sep 2012||30 Sep 2014||-||21 Nov 2014|
|Financing Plan||Grant Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||4.00||Cumulative Contract Awards|
|ADB||4.00||09 Aug 2012||4.00||0.00||100%|
|Cofinancing||0.00||09 Aug 2012||4.00||0.00||100%|
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.
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In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
|Title||Document Type||Document Date|
|Public Financial Management Reform Program: Project Completion Report||Project/Program Completion Reports||May 2016|
|Public Financial Management Reform Program (Second Tranche)||Progress Reports on Tranche Releases||Jun 2014|
|Grant Agreement (Special Operations) for Public Financial Management Reform Program||Grant Agreement||Sep 2012|
|Public Financial Management Reform Program||Reports and Recommendations of the President||Jul 2012|
|Public Financial Management Reform Program||Concept Papers||Jan 2012|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
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