Tuvalu: Strengthened Fiscal Sustainability Program

Sovereign Project | 47318-001

The Asian Development Bank is working with Tuvalu to strengthen the government’s finances and improve the delivery of public services. The program is helping to develop public procurement policies, increase government efficiency, boost transparency, and create a level playing field for those seeking contracts with the government.

Project Details

  • Project Officer
    Olsson, Sivou Beatrice
    Pacific Department
    Request for information
  • Country
  • Modality
    • Grant
  • Sector
    • Public sector management
Project Name Strengthened Fiscal Sustainability Program
Project Number 47318-001
Country Tuvalu
Project Status Closed
Project Type / Modality of Assistance Grant
Source of Funding / Amount
Grant 0442-TUV: Strengthened Fiscal Sustainability Program
Asian Development Fund US$ 2.00 million
Grant: Strengthened Fiscal Sustainability Program
World Bank US$ 1.50 million
Government of Australia US$ 1.10 million
Government of New Zealand US$ 400,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Public sector management / Public expenditure and fiscal management - Reforms of state owned enterprises

Gender Equity and Mainstreaming No gender elements
Project Rationale and Linkage to Country/Regional Strategy
Impact The project is aligned with Tuvalu's National Strategy for Sustainable Development, 2005 2015 (Te Kakeega II) objectives of good governance, macroeconomic growth, and stability by (i) improving procurement practices so public expenditure is more transparent and better managed, (ii) sustaining the value of the fiscal buffer to guard against external shocks, and (iii) improving the performance of public enterprises and reducing the financial drain on the government budget.
Project Outcome
Description of Outcome Sustainable fiscal position
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Public procurement practices strengthened

2. Fiscal buffer sustained

3. Commercial basis for public enterprises and private sector development strengthened

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Nation-wide
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The program has no adverse impact on the environment.
Involuntary Resettlement The program has no impact on involuntary resettlement.
Indigenous Peoples The program has no impact on indigenous people.
Stakeholder Communication, Participation, and Consultation
During Project Design The Ministry of Finance and Economic Development (MFED), as the executing agency, oversaw timely implementation of the agreed policy actions by the implementing agencies, and is responsible for program administration, disbursements, and maintaining all records. The MFED, through the CPU, was the implementing agency for output 1. The MFED, through the Public Enterprise Monitoring Unit, (i) implemented output 2.1; (ii) acted as the joint implementing agency with the Ministry of Foreign Affairs, Environment, Trade, Labor and Tourism for output 2.2; and (iii) acted as the joint implementing agency with the Ministry of Public Utilities for output 2.3. The MFED was the sole implementing agency for output 3. Ongoing TA (footnote 13) helped the government fulfill program conditions. ADB and other development partners supporting the PRM process agreed to a high-level coordination and monitoring mechanism comprising members of the TTF advisory committee representatives of the governments of Tuvalu, Australia, and New Zealand who will monitor the implementation progress of the PRM.
During Project Implementation

Implementation period. The program is being implemented from 1 August 2014 to 30 October 2015, consistent with the government's medium-term fiscal framework and budget cycle.

Procurement and disbursement. The proceeds of the grant will be disbursed in accordance with ADB's simplification of disbursement procedures and related requirements for policy-based grants. The proceeds will be used to finance the foreign exchange cost of items produced and procured in ADB member countries, excluding items included in a list of ineligible items and imports financed by other bilateral and multilateral sources. Grant proceeds disbursed against imports will require a certificate from the government stipulating that the value of the total imports of Tuvalu, minus its imports from nonmember countries, ineligible imports, and imports financed under other official development assistance, is greater than the amount of the grant expected to be disbursed during a particular year. ADB will have the right to audit the use of the grant proceeds and to verify the accuracy of the government's certification.

Responsible ADB Officer Olsson, Sivou Beatrice
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Subregional Office in Suva, Fiji
Executing Agencies
Ministry of Finance
[email protected]
Vaiaku, Funafuti, Tuvalu
Ministry of Finance
Vaiaku, Funafuti, Tuvalu
Concept Clearance 19 Jul 2015
Fact Finding 11 Jun 2015 to 18 Jun 2015
MRM 31 Jul 2015
Approval 30 Sep 2015
Last Review Mission -
Last PDS Update 14 Oct 2015

Grant 0442-TUV

Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Sep 2015 09 Oct 2015 19 Oct 2015 30 Oct 2015 - 24 Nov 2015
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 3.50 Cumulative Contract Awards
ADB 2.00 15 Oct 2021 2.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 1.50 15 Oct 2021 2.00 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.

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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

Title Document Type Document Date
Tuvalu: Strengthened Fiscal Sustainability Program Validations of Project Completion Reports Dec 2017

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.