Manila, April 3, 2006 AEST (ABN Newswire) - Under its updated strategy for the country, Asian Development Bank (ASX: ATB) might expand its assistance program to Fiji Islands to improve the strategic value of its assistance and to promote new growth opportunities.
For 2006-2008, ADB lending is now programmed at about $220 million for five projects that would upgrade roads, develop rural and outer islands, rehabilitate airports, and develop the natural resource base and renewable energy sources, according to its new Country Strategy and Program (CSP) Update.
This will be accompanied by a grant program comprising 12 technical assistance projects totaling $8.15 million that will strengthen partnerships with the Government and help prepare loan projects.
"ADB's updated strategy focuses on building public sector reforms, supporting private sector development, overcoming infrastructure bottlenecks and supporting structural change in the economy by developing alternative livelihoods," says Sirpa Jarvenpaa, ADB's Country Director based in the South Pacific Subregional Office in the Fiji Islands.
"The proposed assistance could be further increased, subject to progress in the country's fiscal and policy reforms and improvement of the investment climate."
"As a central focus, ADB will continue work to expand private sector participation in the economy, particularly through the development of private public partnerships and supporting reforms that improve the enabling environment for private investment, and through initiatives that would promote structural changes toward alternative livelihoods and reforms in the state-owned enterprises and utilities," adds Phillip Erquiaga, Director General of ADB's Pacific Department.
Poverty remains a growing concern in Fiji Islands, despite the overall level of development and moderately high average incomes. The most recent official figures available indicate that more than 28% of the population does not earn an adequate income to meet basic needs.
Fiji islands' economic performance has been mixed in recent years, its growth averaging 2.5% per year in 1999-2004. With the country losing its garments quota for the US market at the start of 2005, job losses are expected.
Meanwhile, the sugar industry, which has relied on a subsidy from the EU, is expected to gradually shrink over the next four years by almost 40% in compliance with its WTO commitments. In the process, many farming households will be displaced and will need to identify alternative sources of livelihoods.
A planned alternative livelihoods project is aimed at generating jobs for those displaced by the contraction of the sugar and garment industries. This would be complemented by a similar program for rural and outer islands development that would address the limited economic opportunities outside the main urban areas.
The CSP Update adopts a new results-based approach to improve monitoring of the impact of ADB's development work in the country - from strategic planning through to completion of projects. It aims to strengthen the results orientation in the Government's planning by including a results framework that identifies outcomes and indicators.
Contact
David Kruger
Email: dkruger@adb.org
Tel:+632 632 5204; +63 916 767 3671
Graham Dwyer
Email: gdwyer@adb.org
Tel:+632 632 5253; +632 898 3413; +63 915 741 4363
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