48361-001: Building Macroeconomic Resilience Subprogram 1 | Asian Development Bank

Tonga: Building Macroeconomic Resilience Subprogram 1

Sovereign (Public) Project | 48361-001 Status: Closed

The Asian Development Bank is working with Tonga to strengthen its long-term economic growth prospects and ability to respond to external economic shocks. The project is providing budget support and is also helping the country respond to the damage caused by Tropical Cyclone Winston, which struck Tonga in February 2016.

Project Details

Project Officer
Basu, Ananya Pacific Department Request for information
Country
  • Tonga
Sector
  • Public sector management
 
Project Name Building Macroeconomic Resilience Subprogram 1
Project Number 48361-001
Country Tonga
Project Status Closed
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0479-TON: Building Macroeconomic Resilience Subprogram 1
concessional ordinary capital resources lending / Asian Development Fund US$ 3.00 million
Grant: Building Macroeconomic Resilience Subprogram 1
Government of Australia US$ 3.00 million
World Bank US$ 1.00 million
European Union US$ 2.80 million
Loan 3393-TON: Building Macroecnomic Resilience Subprogram 1
concessional ordinary capital resources lending / Asian Development Fund US$ 3.00 million
Loan: Building Macroecnomic Resilience Subprogram 1
World Bank US$ 1.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Public sector management - Economic affairs management - Public administration - Public expenditure and fiscal management - Reforms of state owned enterprises

Gender Equity and Mainstreaming No gender elements
Description The Building Macroeconomic Resilience Program comprises three subprograms from fiscal year 2016 to 2018, supporting policy reforms to (i) increase fiscal resilience; (ii) build an inclusive, modern, and accountable state; and, (iii) support a more dynamic and inclusive economy. Subprogram 1 includes a fourth output to support the effective response to disasters, with $1 million disaster financing provided for activities in response to Tropical Cyclone Winston. All policy actions under subprogram 1 are completed and the subprogram was closed by 30 June 2016.
Project Rationale and Linkage to Country/Regional Strategy The proposed Building Macroeconomic Resilience Program aims to strengthen the long-term growth prospects and capacity to respond to external shocks in the Kingdom of Tonga. The program builds on previous policy-based operations to sustain government efforts to improve its fiscal position by adopting prudent policies and better public financial management (PFM), and the business climate by continuing policy, regulatory environment and public enterprise reforms. The programmatic approach will allow chronological sequencing of reforms.
Impact Impacts the Program is aligned with: (1) More inclusive and sustainable growth and development; (2) A more inclusive, sustainable, and dynamic knowledge-based economy; (3) More responsive good governance. (Tonga Strategic Development Framework II, 2015- 2025, 2015)
Project Outcome
Description of Outcome Fiscal position and business environment of the Kingdom of Tonga is improved. (Targets: Annual average, FY2017-FY2019; Baselines: Annual average, FY2012-FY2014)
Progress Toward Outcome Outcome indicators will be measured in 2019, following completion of the programmatic approach with three subprograms.
Implementation Progress
Description of Project Outputs

Fiscal resilience supported

An inclusive, modern and accountable state supported

A more dynamic and inclusive economy supported

Effective response to damages caused by natural disasters

Status of Implementation Progress (Outputs, Activities, and Issues) All policy actions under subprogram 1 have been completed and the subprogram was closed on 30 June 2016. Monitoring of continued compliance and support to address any arising issues is being provided by ADB and the other program partners (European Union, Governments of Australia and New Zealand, World Bank).
Geographical Location
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects As the program is aimed at macroeconomic and fiscal management and reforms it does not entail any physical works. It therefore will not result in any environmental impact.
Involuntary Resettlement The program is aimed at economic and fiscal management and reform. It does not entail any physical works. The program loan does not have any involuntary resettlement impact.
Indigenous Peoples The program is aimed at economic and fiscal management and reforms. It does not entail any physical works. Tongans are ethnically homogeneous Polynesian people, comprising most of the country's population. Less than 2% of the population is of European, part-European, Chinese, or non-Tongan Pacific island origin. The program is not expected to impact any distinct and vulnerable group of indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design The Ministry of Finance and National Planning will be the executing agency. The ministries of public enterprises; commerce, tourism, and labor; and revenue services and customs; the National Emergency Management Office; and the Office of the Prime Minister will be the implementing agencies. The Budget Support Management Committee will oversee program implementation. It is chaired by the chief executive officer of the Ministry of Finance and National Planning and comprises all implementing agencies and major development partners including ADB. No separate program management unit or procurement is envisaged. The program will be implemented from October 2014 to December 2017. The joint policy reform matrix process and biannual development partner forum facilitate broad consultations on reform priorities, with the cabinet providing strategic guidance. Individual reform initiatives form part of existing sector strategies and will be discussed with private sector and civil society groups during program preparation and implementation.
During Project Implementation The implementation of and continued compliance with policy actions under subprogram 1 is supported through the joint policy reform matrix process. Joint review and technical assistance missions are being conducted regularly by all partners (ADB, European Union, Governments of Australia and New Zealand, World Bank).
Responsible ADB Officer Basu, Ananya
Responsible ADB Department Pacific Department
Responsible ADB Division Urban, Social Development & Public Management Division, PARD
Executing Agencies
Ministry of Finance and National Planning
Vuna Road
Nuku'alofa
Kingdom of Tonga
Timetable
Concept Clearance 07 Jul 2015
Fact Finding 02 Sep 2015 to 09 Sep 2015
MRM 23 Feb 2016
Approval 30 May 2016
Last Review Mission -
Last PDS Update 29 Sep 2016

Grant 0479-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 May 2016 07 Jun 2016 14 Jun 2016 30 Jun 2016 - 30 Jun 2016
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 6.00 Cumulative Contract Awards
ADB 3.00 30 May 2016 3.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 3.00 30 May 2016 3.00 0.00 100%

Loan 3393-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 May 2016 07 Jun 2016 14 Jun 2016 30 Jun 2016 - 30 Jun 2016
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4.00 Cumulative Contract Awards
ADB 3.00 30 May 2016 3.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 1.00 30 May 2016 3.00 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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Evaluation Documents See also: Independent Evaluation

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Related Publications

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