ADB assistance will support the NUC in the following activities: (i) developing and implementing an asset management and maintenance plan; (ii) improving accounting systems through integration of the asset registry and the financial management information system; (iii) implementing performance management systems for lower level NUC staff; and (iv) reviewing the corporate governance of the organization.
|Project Name||Institutional Strengthening of the Nauru Utilities Corporation|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Energy - Energy sector development and institutional reform
|Gender Equity and Mainstreaming||No gender elements|
|Description||ADB assistance will support the NUC in the following activities: (i) developing and implementing an asset management and maintenance plan; (ii) improving accounting systems through integration of the asset registry and the financial management information system; (iii) implementing performance management systems for lower level NUC staff; and (iv) reviewing the corporate governance of the organization.|
|Project Rationale and Linkage to Country/Regional Strategy||
Despite significant progress, a number of weaknesses in the performance of NUC remain. NUC has no preventative maintenance plans, and as a result maintenance is carried out on an emergency or ad hoc basis. The NUC also lacks procedures for capital expenditure planning and procurement planning. NUC depends on imported diesel fuel for almost all power generation. Tariffs are the lowest in the Pacific and do not cover diesel fuel cost. The utility therefore depends on a fuel subsidy from the government. Unclear compensation policies and worker classifications result in inefficient allocation of compensation at the NUC.
While an asset inventory was introduced under TA-7873, additional improvements are required to the accounting system, in particular through integration of the fixed assets register and the financial management information system fixed asset management module which has recently been acquired for the NUC. There is also a lack of management autonomy, despite corporatization. Despite the NUC's newly streamlined governance structure, it is still subject to ministerial oversight and requires cabinet approval for borrowing, acquisition and disposal of property, rather than being accountable to an independent board of directors.
|Impact||Reduced drain on the fiscal position of the government|
|Description of Outcome||Improved financial, operational and governance performance of the NUC|
|Progress Toward Outcome||The consultants have submitted draft final report containing recommendations. Several steps have been already institutionalized to improve capacity and streamlining operational issues. The ongoing Nauru Electricity supply security and sustainability project is monitoring implementation and sustainability of recommendations of the report.|
|Description of Project Outputs||
NUC implements asset management and maintenance plan
NUC implements improved accounting systems through integration of the asset registry and the financial management information system
NUC implements Performance Management System for lower level NUC staff
NUC implements revised corporate governance structure
|Status of Implementation Progress (Outputs, Activities, and Issues)||
The consutlants have submitted the draft final report and is being reviewed by ADB. Each consultant has incorporated findings and recommendation for the way forward. The implementation of those recommendations will be monitored.
Consultants' final report is expected to be submitted by April 2016.
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||We consulted with government ministries and the Nauru Utilities Corporation (NUC), development partners including the Government of Australia, the European Union, and the private sector and stateown enterprises including the Republic of Nauru Phosphate Corporation, Nauru Rehabilitation Corporation and Eigigu Holdings, as well as Capelle & Partners, and Meridien Holdings. Civil society groups consulted include the Nauru Island Association of NGOs.|
|During Project Implementation||Consultation with stakeholders including Ministry of Finance, NUC, Nauru phosphate Corporation, Government of Australia, High commissioner of Taiwan during TA implementation were duly carried out by the consultants and by ADB during review missions.|
|Responsible ADB Officer||Indrawansa, P.P.G.P.P.|
|Responsible ADB Department||Pacific Department|
|Responsible ADB Division||Pacific Liaison and Coordination Office in Sydney, Australia|
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
|Approval||01 Apr 2014|
|Last Review Mission||-|
|Last PDS Update||30 Mar 2016|
|Approval||Signing Date||Effectivity Date||Closing|
|01 Apr 2014||-||01 Apr 2014||31 Mar 2016||-||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|225,000.00||0.00||75,000.00||0.00||0.00||0.00||300,000.00||01 Apr 2014||182,824.37|
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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|Title||Document Type||Document Date|
|Institutional Strengthening of the Nauru Utilities Corporation: Technical Assistance Completion Report||TA Completion Reports||Jul 2017|
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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