Cook Islands : Supporting Sustainable Economic Recovery Program
1. The Supporting Sustainable Economic Recovery Program will help the Cook Islands restore fiscally sustainable growth led by the private sector, which has been adversely affected by the coronavirus disease (COVID-19) pandemic. The program aims to (i) improve fiscal management and sustainability and (ii) strengthen the enabling environment for the private sector. It aligns with Asian Development Bank (ADB) Strategy 2030 operational priorities of strengthening governance and institutional capacity, accelerating progress in gender equality, and fostering regional cooperation and integration. It is consistent with the country operations business plan for Eleven small Pacific island countries, 2021-2023 and Pacific Approach, 2021-2025.????2. A policy-based loan of $80 million is proposed to support the government's ongoing reform program to restore longer-term economic growth and fiscal sustainability while meeting urgent development financing needs.
Project Details
-
Project Officer
Webb, James M.
Pacific Department
Request for information -
Country/Economy
Cook Islands -
Sector
- Public sector management
| Project Name | Supporting Sustainable Economic Recovery Program | ||||||||||||
| Project Number | 55014-001 | ||||||||||||
| Country / Economy | Cook Islands |
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| Project Status | Active | ||||||||||||
| Project Type / Modality of Assistance | Grant Loan |
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| Source of Funding / Amount |
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| Operational Priorities | OP1: Addressing remaining poverty and reducing inequalities OP2: Accelerating progress in gender equality OP6: Strengthening governance and institutional capacity OP7: Fostering regional cooperation and integration |
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| Sector / Subsector | Public sector management / Economic affairs management - Public administration - Public expenditure and fiscal management |
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| Gender | Effective gender mainstreaming | ||||||||||||
| Description | 1. The Supporting Sustainable Economic Recovery Program will help the Cook Islands restore fiscally sustainable growth led by the private sector, which has been adversely affected by the coronavirus disease (COVID-19) pandemic. The program aims to (i) improve fiscal management and sustainability and (ii) strengthen the enabling environment for the private sector. It aligns with Asian Development Bank (ADB) Strategy 2030 operational priorities of strengthening governance and institutional capacity, accelerating progress in gender equality, and fostering regional cooperation and integration. It is consistent with the country operations business plan for Eleven small Pacific island countries, 2021-2023 and Pacific Approach, 2021-2025.????2. A policy-based loan of $80 million is proposed to support the government's ongoing reform program to restore longer-term economic growth and fiscal sustainability while meeting urgent development financing needs. A single tranche stand-alone policy-based loan is considered appropriate since the economic recovery is uncertain, and the Cook Islands does not routinely use loans to meet development finance needs because of debt sustainability considerations. An initial drawdown of $40 million in 2021 will meet the Cook Islands' immediate financing needs. Since financing needs will be largely determined by the degree to which a tourism recovery can be sustained, the remaining $40 million will be made available for potential future drawdowns based on pre-defined conditions, through a precautionary financing option (PFO). | ||||||||||||
| Project Rationale and Linkage to Country/Regional Strategy | The Cook Islands' population of about 17,580 (in 2020) is spread across 15 remote South Pacific islands and two million square kilometers of ocean. It is one of the region's??most tourism-dependent countries, with receipts of 61.4% of gross domestic product (GDP) in fiscal year (FY) 2019. The shift towards tourism has led to rapid development, with basic needs poverty falling from 28.4% in 2006 to 8.4% by 2016. Growth is hampered by factors including a small population, narrow economic base, high exposure to disaster and climate risks, weak business climate, capacity constraints, and high public administration and infrastructure costs. The Cook Islands has no access to international or local credit markets, is not a member of the International Monetary Fund (IMF) or World Bank and does not have a central bank to provide emergency liquidityleaving very limited options for support should the nascent recovery unwind. | ||||||||||||
| Impact | Working together to build a dynamic, prosperous and inclusive economic future for Cook Islanders, that is in harmony with our culture and environment (Cook Islands Economic Development Strategy 2030).?? | ||||||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Fiscally sustainable private sector-led economic growth in the Cook Islands restored.?? |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Fiscally sustainable private sector-led economic growth in the Cook ?Islands restored.?? |
| 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 | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | Actual disbursement as of 21-Dec-2021: 37,767,000.000 |
| Responsible ADB Officer | Webb, James M. |
| Responsible ADB Department | Pacific Department |
| Responsible ADB Division | PASP |
| Executing Agencies |
Ministry of Finance & Economic Management |
| Timetable | |
|---|---|
| Concept Clearance | 11 Sep 2021 |
| Fact Finding | 02 Sep 2021 to 14 Sep 2021 |
| MRM | 20 Oct 2021 |
| Approval | 10 Dec 2021 |
| Last Review Mission | - |
| Last PDS Update | 24 Oct 2022 |
Loan 4161-COO
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 10 Dec 2021 | 14 Dec 2021 | 16 Dec 2021 | 31 Dec 2024 | - | 06 Jul 2022 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 40.00 | Cumulative Contract Awards | |||
| ADB | 40.00 | 04 May 2023 | 37.77 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 04 May 2023 | 37.77 | 0.00 | 100% |
Loan 4162-COO
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 10 Dec 2021 | 14 Dec 2021 | 16 Dec 2021 | 31 Dec 2024 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 40.00 | Cumulative Contract Awards | |||
| ADB | 40.00 | 04 May 2023 | 0.00 | 0.00 | 0% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 04 May 2023 | 0.00 | 0.00 | 0% |
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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| Title | Document Type | Document Date |
|---|---|---|
| Loan Agreement (Ordinary Operations) for Loan 4161-COO and Loan 4162-COO: Supporting Sustainable Economic Recovery Program | Loan Agreement (Ordinary Resources) | Dec 2021 |
| Supporting Sustainable Economic Recovery Program: Report and Recommendation of the President | Reports and Recommendations of the President | Nov 2021 |
| Supporting Sustainable Economic Recovery Program: Concept Paper | Concept Papers | Sep 2021 |
| Supporting Sustainable Economic Recovery Program: Initial Poverty and Social Analysis | Initial Poverty and Social Analysis | Sep 2021 |
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.
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Evaluation Documents See also: Independent Evaluation
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Related Publications
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ADB, Cook Islands Sign $80 Million Financing to Support Economic Recovery
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The Asian Development Bank will provide an $80 million loan and the Government of New Zealand a $21 million grant to help Cook Islands’ economy transition from recovery to sustainable, private sector-led growth.
Tenders
Contracts Awarded
Procurement Plan
None currently available.