48361-002: Building Macroeconomic Resilience Program (Subprogram 2) | Asian Development Bank

Tonga: Building Macroeconomic Resilience Program (Subprogram 2)

Sovereign (Public) Project | 48361-002 Status: Closed

The program aims to strengthen Tonga's long-term growth prospects and capacity to respond to external shocks. The programmatic approach, with three subprograms during 2016 -2018, builds on previous policy-based operations of the Asian Development Bank (ADB) and other development partners that sustain government efforts to improve (i) its fiscal position by adopting prudent policies and better public financial management (PFM), and (ii) the business climate by continuing policy, regulatory environment, and public enterprise reforms.

Project Details

Project Officer
Basu, Ananya Pacific Department Request for information
Country
  • Tonga
Modality
  • Grant
  • Loan
Sector
  • Public sector management
 
Project Name Building Macroeconomic Resilience Program (Subprogram 2)
Project Number 48361-002
Country Tonga
Project Status Closed
Project Type / Modality of Assistance Grant
Loan
Source of Funding / Amount
Grant 0532-TON: Building Macroeconomic Resilience Program (Subprogram 2)
concessional ordinary capital resources lending / Asian Development Fund US$ 2.25 million
Grant: Building Macroeconomic Resilience Program (Subprogram 2)
European Union US$ 2.10 million
Grant: Building Macroeconomic Resilience Subprogram 2
Government of Australia US$ 3.10 million
Government of New Zealand US$ 1.10 million
World Bank US$ 1.65 million
Loan 3531-TON: Building Macroeconomic Resilience Program (Subprogram 2)
concessional ordinary capital resources lending / Asian Development Fund US$ 2.75 million
Loan: Building Macroeconomic Resilience Program (Subprogram 2)
World Bank US$ 3.35 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 program aims to strengthen Tonga's long-term growth prospects and capacity to respond to external shocks. The programmatic approach, with three subprograms during 2016 -2018, builds on previous policy-based operations of the Asian Development Bank (ADB) and other development partners that sustain government efforts to improve (i) its fiscal position by adopting prudent policies and better public financial management (PFM), and (ii) the business climate by continuing policy, regulatory environment, and public enterprise reforms.
Project Rationale and Linkage to Country/Regional Strategy The program is consistent with ADB's Pacific Approach 2016 -2020 which supports greater resilience to external shocks and risks and a better business environment as key outcomes.
Impact

More inclusive and sustainable growth and development (Tonga Strategic Development Framework, 2015 -2025)

A more inclusive, sustainable, and dynamic knowledge-based economy (Tonga Strategic Development Framework, 2015 -2025)

More responsive good governance (Tonga Strategic Development Framework, 2015- 2025)

Project Outcome
Description of Outcome Fiscal position and business environment in Tonga is improved
Progress Toward Outcome Outcome indicators will be measured 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

Status of Implementation Progress (Outputs, Activities, and Issues)

Fiscal anchor system introduced.

New procurement tracking database established.

Receivership Bill approved.

Geographical Location Nation-wide
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. The program is not expected to impact any distinct and vulnerable group of indigenous peoples.
Stakeholder Communication, Participation, and Consultation
During Project Design

The program is country-wide and will affect, through macroeconomic and sector policy changes, all citizens of Tonga. Specific beneficiary groups and potentially negatively affected groups include the private sector, workers' associations, public enterprise employees, women's groups, and the vulnerable. The program is aligned with the Tonga strategic development frameworks I and II, which are both based

on countrywide community consultations. Individual reform actions are based on or will incorporate feedback from consultations of identified stakeholder groups, led by the responsible implementing agencies.

During Project Implementation The program will selectively engage stakeholders based on potential effects of individual policy actions. Issues specifically relevant for the poor include negative employment effects from the foundational employment legislation, public enterprise reform, and utility regulation. The program aims to promote pro-poor, socially acceptable, and economically feasible policy decisions.
Business Opportunities
Consulting Services Not required.
Procurement Not required.
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 -
Fact Finding 20 Feb 2017 to 24 Feb 2017
MRM 30 Mar 2017
Approval 29 May 2017
Last Review Mission -
Last PDS Update 12 Sep 2017

Grant 0532-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 May 2017 31 May 2017 01 Jun 2017 30 Sep 2017 - 11 Sep 2017
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 4.35 Cumulative Contract Awards
ADB 2.25 29 May 2017 2.25 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 2.10 29 May 2017 2.25 0.00 100%

Loan 3531-TON

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 May 2017 31 May 2017 01 Jun 2017 30 Sep 2017 - 11 Sep 2017
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 6.10 Cumulative Contract Awards
ADB 2.75 29 May 2017 2.81 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 3.35 29 May 2017 2.81 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

None currently available.

Related Publications

None currently available.


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Tenders

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.