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Asian Development Bank and Tuvalu: Fact Sheet

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Asian Development Bank and Tuvalu: Fact Sheet ASIAN DEVELOPMENT BANK MEMBER FACT SHEET Tuvalu: 2020 Loans, Grants, Equity To help the Tuvalu overcome the impacts of the Investments, Technical Assistance, and Trade and Supply Chain Finance and COVID-19 pandemic, ADB’s assistance will focus on Microfinance Program Commitments ($ million)a improving outer-island port facilities, building disaster Product Type Sovereign Nonsovereign Total resilience, promoting renewable energy sources, Grants 9.00 – 9.00 Technical Assistanceb 4.26 0.15 4.41 and sustaining good fiscal management. Total 13.26 0.15 13.41 – = nil, DMC = developing member country, TA = technical assistance. Notes: Commitment is the financing approved by ADB’s Board of Directors or Management for which the legal agreement has been signed by the borrower, recipient, or the investee company and ADB. Grants and TA include ADB-administered cofinancing. TUVALU a Numbers may not sum precisely because of rounding. b Financing for TA projects with regional coverage is distributed to their specific DMCs where breakdown is available. Tuvalu is a small island developing state for Tuvalu. Cumulative loan and grant comprising nine atolls in the South disbursements to Tuvalu amount to Pacific. It is geographically isolated $36.3 million. These were financed by Tuvalu: Cumulative Loans, Grants, and highly vulnerable to climatic and concessional ordinary capital resources Equity Investments, Technical Assistance, economic shocks. With a small private and the Asian Development Fund. and Trade and Supply Chain Finance and Microfinance Program Commitmentsa, b, c, d sector and limited resources to support socioeconomic development, the public Total % COVID-19 ADB-SUPPORTED PROJECTS Amount of Total Response sector is its main driver of growth. Sector No. ($ million)e Amounte ($ million)e AND PROGRAMS Agriculture, Natural 1 0.10 0.12 – Tuvalu depends on fishing license Resources, and In 2020, ADB provided $1 million in Rural Development fees, trust fund investments, official emergency grant financing from the Education 5 4.58 5.57 – development assistance, and remittances Asian Pacific Disaster Response Fund and Energy 1 6.67 8.11 – for foreign currency earnings. Disasters Finance 1 0.39 0.47 – a $208,000 technical assistance grant Health 3 4.67 5.68 2.17 triggered by natural hazards, such as to help Tuvalu procure medical supplies Industry and Trade – 0.07 0.08 – cyclones and king tides, increase the and equipment to protect the population Information and – 0.08 0.10 – Communication country’s economic volatility and can against coronavirus disease (COVID-19). Technology substantially alter fiscal outcomes. The bank is also helping expand coverage Multisector – 0.40 0.48 – Public Sector Management 19 29.93 36.39 4.38 Tuvalu has been a member of the of new vaccines in the Pacific, including Transport 9 30.75 37.39 – Asian Development Bank (ADB) since a grant of $2.5 million for Tuvalu under Water and Other 3 4.61 5.61 0.10 a regional project, along with planned Urban Infrastructure 1993. ADB’s assistance has concentrated and Services on improving macroeconomic growth additional financing to procure and Total 42 82.24 100.00 6.65 and stability, advancing renewable distribute COVID-19 vaccines. – = nil, COVID-19 = coronavirus disease, DMC = developing member country, TA = technical assistance. energy, upgrading transport assets, a Grants and TA include ADB-administered cofinancing. expanding health coverage, and building b Includes sovereign and nonsovereign loans and technical assistance. disaster resilience. c Using primary sector in reporting of commitments. d Financing for TA projects with regional coverage is distributed to their specific DMCs where breakdown is available. Since 1993, ADB has committed e Numbers may not sum precisely because of rounding. loans totaling $7.9 million, grants of $60.8 million, technical assistance worth $10.7 million, and ADB- administered cofinancing of $2.8 million Published in April 2021 The Pacific Disaster Resilience Program to reduce the incidence of waterborne mobilized $1.9 billion of long-term provides Tuvalu with a predictable disease in the capital. project cofinancing and $3.3 billion source of post-disaster financing. of cofinancing through its Trade Since 2008, ADB, in collaboration with The Government of Tuvalu was able and Supply Chain Finance Program other development partners, has engaged to quickly access $3 million in January and Microfinance Program. Total with the government to strengthen public 2020 in the aftermath of Cyclone outstanding balances and commitments service delivery and improve public Tino. The program, replenished in of nonsovereign transactions funded financial management. Progress made in November 2020, allows for a further by ADB’s own resources stood at these areas has triggered over $11 million $4 million grant to respond to future $14.3 billion as of 31 December 2020. in general budget support from ADB. disasters triggered by natural hazards The bank has also provided technical and to health emergencies. assistance to support analytical work, PARTNERSHIPS To improve the safety, efficiency, and capacity building, and implementation ADB is collaborating with the sustainability of maritime transport of policy reforms. governments of Australia and New between the capital, Funafuti, and the In other technical assistance to Tuvalu, Zealand, the European Union, and the outer islands, ADB has committed ADB has supported improvements to World Bank on policy dialogue backed $48.7 million in grant financing since governance, education, and capacity by budget support for Tuvalu. It also 2016 for the Outer Island Maritime development. The country has also liaises closely with the International Infrastructure Project. The construction benefited from regional technical Monetary Fund and the Pacific Financial of workboat harbors in Nukulaelae, assistance in economic management, Technical Assistance Centre, and is an Niutao, and Nui is under way. audit capacity, private sector observer at the biannual meetings of the The bank, in March 2020, committed development, infrastructure planning, Tuvalu Trust Fund Board. a grant of $6 million for the Increasing climate change, and country safeguards. ADB’s Pacific Private Sector Access to Renewable Energy Project Development Initiative, cofinanced by under the Pacific Renewable Energy NONSOVEREIGN OPERATIONS the governments of Australia and Investment Facility. The project, New Zealand, has been active in Tuvalu As a catalyst for private investments, ADB’s first in Tuvalu’s energy sector, since 2008. This regional initiative works ADB provides financial assistance to will help transform the power systems to reduce constraints to doing business, nonsovereign projects and financial in the capital, Funafuti, and on the incentivize entrepreneurship and intermediaries. Total commitments outer islands. investment, foster new business models, in loans and equity investments from and remove barriers to women’s full In August 2020, ADB committed a ADB’s own funds in 2020 amounted participation in the economy. project readiness financing grant of to $1.4 billion for 38 transactions in $4 million to ensure timely and cost- economic and social infrastructure, ADB also supports Tuvalu through the effective project outcomes for the finance sector, and agribusiness. Pacific Region Infrastructure Facility, ensuing Funafuti Water and Sanitation ADB also actively mobilizes which provides technical advice on Project, which aims to increase access cofinancing from commercial and infrastructure development and to safe water and improve sanitation concessional sources. In 2020, ADB sustainable infrastructure management Tuvalu: Evaluation Results for Sovereign Tuvalu: Portfolio Performance Quality Indicators and Nonsovereign Operations, 2011–2020 for Sovereign Lending and Grants, 2019–2020 Total Number No. of Ongoing Loansa (as of 31 Dec 2020) – of Validated Evaluation Ratings 2019 ($ million) 2020 ($ million) and Evaluated Contract Awardsb, c – – Projects and Highly successful Less than Disbursementsb – – Programs and successful successful Unsuccessful No. of Ongoing Grantsa,d (as of 31 Dec 2020) 8 Sovereign 4 3 1 – 2019 ($ million) 2020 ($ million) Operations Contract Awardsb, c, d 1.20 14.62 Nonsovereign – – – – Disbursementsb, d 7.81 7.19 Operations At Risk Projects (%) (as of 31 Dec 2020) 33 – = nil, IED = Independent Evaluation Department. – = nil. Note: The figures indicate the number of sovereign and nonsovereign operations in the country a Based on commitments. that have been validated or evaluated by the IED and their overall performance ratings. The b Includes closed loans/grants that had contract awards or disbursements during the year. coverage consists of all validated or evaluated project completion reports and extended annual c Excludes policy-based, results-based, and financial intermediation/credit loans and grants. review reports circulated by ADB within the 10-year period from 1 July 2010 to 30 June 2020. See evaluations related to Tuvalu. d Includes only Asian Development Fund and other ADB special funds. Source: IED success rate database (as of 31 December 2020). Tuvalu: Projects Cofinanced, 1 January 2016–31 December 2020 Cofinancing No. of Projects Amount ($ million) Sovereign 3 11.32 Grants 2 11.10 Technical Assistance 1 0.22 Tuvalu: Share of Procurement Contracts for Loan, Grant, and Technical Assistance Projects Cumulative 2019 2020 (as of 31 Dec 2020) Amount % of Amount % of Amount % of Item ($ million) Total ($ million)
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