MEMBER FACT SHEET

ADB’s program of assistance to will focus Tuvalu: 2019 Committed Loans, Grants, and Technical Assistance on improving outer-island port facilities, building ($ million) Loans disaster resilience, promoting renewable energy Technical sources, and sustaining good fiscal management. Sovereign Nonsovereign Assistance Grants Total – – – 10.00 10.00

– = nil.

Notes: Commitment is the financing approved by the ADB Board of Directors or Management for which the investment agreement has been signed by the borrower, recipient, or the investee company Tuvalu and ADB. Grants and technical assistance include ADB-administered cofinancing. Tuvalu has been a member of the Asian Tuvalu. Cumulative loan and grant Development Bank (ADB) since 1993. disbursements to Tuvalu from concessional ordinary capital resources This fragile Pacific microstate is Tuvalu: Cumulative Lending, Grant, and and the Asian Development Fund a, b, c geographically isolated, vulnerable to Technical Assistance Commitments amount to $29.1 million. Total climatic events, exposed to economic Amount shocks, and lacking in many of the Sector No. ($ million)d %d ADB-SUPPORTED PROJECTS Agriculture, Natural Resources, 1 0.10 0.15 resources needed for sustainable growth and Rural Development and poverty reduction. With limited AND PROGRAMS Education 5 4.52 6.56 opportunities for private business, the In recent years, ADB’s development Energy 1 6.00 8.72 country relies on its public sector as the program in Tuvalu has concentrated Finance 1 0.10 0.15 main driver of growth. Health 1 2.50 3.63 on collaborative efforts to improve Public Sector Management 18 24.68 35.86 Tuvalu’s income derives largely macroeconomic growth and stability, Transport 9 30.47 44.27 from fishing license fees, trust investment in renewable energy, Water and Other Urban 2 0.46 0.67 fund investments, foreign aid, and transport infrastructure, health Infrastructure and Services remittances. Natural disasters such coverage, and disaster recovery. Total 38 68.83 100.00 as cyclones and king tides increase a Grants and technical assistance include ADB-administered Through technical assistance and cofinancing. the volatility of revenue flows and can policy-based grants in 2012 and 2015, b Includes sovereign and nonsovereign loans and technical assistance. substantially alter fiscal outcomes. c ADB has closely engaged with the Using primary sector in reporting of commitments. The use of the Australian dollar means d Numbers may not sum precisely because of rounding. government and development partners the Government of Tuvalu is reliant on fiscal policy as the macroeconomic policy lever. Since 1993, ADB has committed loans totaling $7.9 million, grants of $52.3 million, and technical assistance worth $8.6 million for

Published in May 2020 in supporting policy reforms designed to ADB has committed $11.8 million in leveraged an additional $2 million from enhance Tuvalu’s public procurement, grant financing for the Outer Island the Asian Development Fund (grant) private sector participation, long-term Maritime Infrastructure Project, which regional pool. On 29 January 2020, macroeconomic stability, and economic will improve the safety, efficiency, and ADB provided $3 million in postdisaster self-sufficiency. sustainability of maritime transport financing to Tuvalu after a state of between Funafuti and the outer islands, emergency was declared on 24 January In October 2019, ADB committed a commencing with construction of a 2020. This immediate financing will help $4 million policy-based grant to improve harbor in Nukulaelae. The financing support Tuvalu’s disaster recovery and the management of Tuvalu’s public includes $3 million mobilized from the reconstruction activities. finances and national infrastructure. Disaster Response Facility, following The bank, in collaboration with other ADB has funded technical assistance Tropical Cyclone Pam in March development partners, is working toward to support governance, education, 2015, and $500,000 from the Global future reforms to sustain and build on and capacity development in Tuvalu. Environment Facility. In 2018, ADB these measures, and will continue to The country has also benefited from committed additional grant financing engage with the government through regional technical assistance in economic of $15.4 million for the construction of policy dialogue, technical assistance, and management, audit capacity, private sector a harbor on the northern reef island of policy-based programs. development, infrastructure planning, Niutao, upgrading facilities to higher climate change, and country safeguards. In November 2019, ADB committed standards of climate resilience. a grant of $6 million for the Increasing In 2018, ADB committed financing to Access to Renewable Energy Project NONSOVEREIGN OPERATIONS strengthen effective coverage of new under the Pacific Renewable Energy vaccines in the Pacific, including a grant As a catalyst for private investments, Investment Facility. The project, ADB’s of $2.5 million for Tuvalu. This regional ADB provides financial assistance to first in Tuvalu’s energy sector, will help project is designed to improve overall nonsovereign projects and financial transform the power systems in the immunization rates and support greater intermediaries. Total commitments capital, Funafuti, and on the outer efficiency of primary health services in from ADB’s own funds (in equity and islands, from manual, diesel-based Samoa, Tonga, Tuvalu, and Vanuatu. direct loans) in 2019 amounted to generators to modern, automated $3.00 billion for 38 transactions in operations producing a high level of In 2018, ADB committed the Pacific economic and social infrastructure, the renewable energy. Over its lifetime, Disaster Resilience Program to provide finance sector, and agribusiness. ADB the project is expected to displace a predictable source of postdisaster also actively mobilizes cofinancing from 6.7 million liters of diesel fuel and financing to small island countries. commercial and concessional sources. avoid 17,800 tons of carbon dioxide- Tuvalu set aside $1 million as an In 2019, ADB mobilized $3.28 billion of equivalent emissions. Asian Development Fund grant and long-term cofinancing and $3.69 billion

Tuvalu: Project Success Rates Tuvalu: Portfolio Performance Quality Indicators No. of Independently for Sovereign Lending and Grants, 2018–2019 Success Rate Evaluated Projects No. of Ongoing Loansa (as of 31 Dec 2019) – Year (%) and Programs 2018 ($ million) 2019 ($ million) 2012 – 1 Contract Awardsb, c – – b 2013 100.0 1 Disbursements – – No. of Ongoing Grantsa (as of 31 Dec 2019) 5 2015 100.0 1 2018 ($ million) 2019 ($ million) 2017 100.0 1 Contract Awardsb, c, d 0.34 1.20 Total 75.0 4 Disbursementsb, d 0.78 7.81 – = nil. Actual Problem Projects (%) (as of 31 Dec 2019) – Note: The success rates reported are based on the ratings from validated PCRs and independently – = nil. evaluated performance evaluation reports only and do not include self-evaluations. The ratings a Based on commitments. are reported not by calendar year but for the year ending June (e.g., 2019 success rates are derived b Includes closed loans/grants that had contract awards or disbursements during the year. from success rates of validated PCRs and PPERs completed from July 2018 to June 2019). With c small sample sizes, success rates do not necessarily represent country operations performance. Excludes policy-based lending/grants. d Includes only Asian Development Fund and other ADB special funds. Source: PCR validation reports and project/program performance evaluation reports ratings database as of 31 December 2019.

Tuvalu: Projects Cofinanced, Tuvalu: Share of Procurement Contracts for 1 January 2015–31 December 2019 Loan, Grant, and Technical Assistance Projects Cofinancing No. of Projects Amount ($ million) Cumulative Sovereign 4 14.32 2018 2019 (as of 31 Dec 2019) Grants 3 14.10 Amount % of Amount % of Amount % of Item ($ million) Total ($ million) Total ($ million) Total Technical Assistance 1 0.22 Goods, Works, and – – 4.00 0.03 16.29 0.01 Related Services Consulting Services – – 0.25 0.03 0.71 0.01 Total Procurement – – 4.25 0.03 17.00 0.01 – = nil, 0.00 = less than $50,000. Top 5 Contractors/Suppliers from Tuvalu Involved in Goods, Top 5 Consultants from Tuvalu Involved in Consulting Works, and Related Services Contracts under ADB Loan and Services Contracts under ADB Loan, Grant, and Technical Grant Projects, 1 January 2015–31 December 2019 Assistance Projects, 1 January 2015–31 December 2019 Contract Amount Contract Amount Contractor/Supplier ($ million) Consultant ($ million) Others 6.00 Individual Consultants 0.58 Total 6.00 Total 0.58

of cofinancing in trade finance, for three investment projects and OPERATIONAL CHALLENGES microfinance, and supply chain finance $0.76 million for three technical programs. Total outstanding balances assistance projects. The performance of the ADB portfolio in and commitments of nonsovereign Tuvalu can be hampered by limitations In 2019, Tuvalu received $10.60 million transactions funded by ADB’s own in the country’s policy development, in grant cofinancing from the resources stood at $13.78 billion as of program and project design and governments of Australia and New 31 December 2019. implementation, and management Zealand, the European Union, and the capacity. Improvements to fiscal World Bank for the Improved Fiscal and management, including compliance PARTNERSHIPS Infrastructure Management Program. with public procurement regulations, ADB is collaborating with the accounting practices, monitoring governments of Australia and New PROCUREMENT and reporting, and management of Zealand, the European Union, and the infrastructure investments remain Each year, ADB provides loans, grants, World Bank on policy dialogue backed key challenges to sound public and technical assistance to fund by flexible budget support for Tuvalu. financial management and operational projects and activities in its developing effectiveness. The government’s Public ADB is a member of the International member countries and several billion Financial Management Roadmap for Monetary Fund Article IV mission to dollars in contracts to procure goods, 2018-2021 is guiding government and Tuvalu, and it liaises closely with the works, and consulting services. Most development partner efforts to address Pacific Financial Technical Assistance contracts are awarded on the basis of weaknesses and enhance coordination Centre, particularly on macroeconomic international competition, which is and implementation of critical reforms. management and fiscal conditions. The open to firms and individuals from any Given the limited pool of local expertise, bank is also an observer at the biannual ADB member, regional or nonregional. ADB and development partners continue meetings of the Board. to fill capacity gaps using international Significant support for infrastructure Share of ADB’s Procurement sources. planning is being provided by the ADB- Contracts administered Pacific Region Infrastructure Goods, Works, and Related Services FUTURE DIRECTIONS Facility, with ADB also seen as a strategic ADB’s procurement contracts in Asia ADB’s Pacific Approach, 2016–2020 partner to Tuvalu in developing pipeline and the Pacific for goods, works, and serves as the country partnership projects to access grant financing from the related services under loan and grant strategy for 11 small Pacific island Green Climate Fund. operations totaled $12.38 billion in 2018 countries, including Tuvalu. The and $14.27 billion in 2019. Cumulative country operations business plan, Financing Partnerships procurement since 1966 has been 2020–2022 also takes a multicountry Financing partnerships enable ADB’s $194.28 billion covering 219,119 contracts. approach to identify commonalities and opportunities for operational development partners, governments In Tuvalu, 10 contracts worth efficiencies. It supports the three- or their agencies, multilateral $16.29 million have been awarded to pronged strategy of helping small island financing institutions, and commercial contractors and suppliers since 1993. organizations to participate in financing nations reduce costs, manage risks, and ADB projects. The additional funds Consulting Services create economic value. are provided in the form of loans and ADB’s procurement contracts in ADB’s program of assistance to Tuvalu grants, technical assistance, and other Asia and the Pacific for consulting will focus on improving outer-island port nonsovereign cofinancing such as B loans, services under loan, grant, and facilities, building disaster resilience, risk transfer arrangements, parallel loans technical assistance operations promoting renewable energy sources, and equity, guarantee cofinancing, and totaled $706.15 million in 2018 and and sustaining good fiscal management. cofinancing for transactions under ADB’s $745.02 million in 2019. Cumulative Regional approaches to energy Trade Finance Program and Supply Chain procurement since 1966 has been efficiency, climate change, and economic Finance Program. $13.4 billion covering 63,327 contracts. infrastructure will also be explored. ADB began cofinancing operations in In Tuvalu, 15 contracts worth Tuvalu in 2008. Since then, sovereign $0.71 million have been awarded to cofinancing commitments for Tuvalu consultants since 1993. have amounted to $14.10 million Contacts Tuvalu Pacific Country Office Partnership House Vaiaku, Funafuti, Tuvalu Tel +688 20610

Pacific Subregional Office Level 5, Ra Marama Building 91 Gordon Street Suva, Tel +679 331 8101 Fax +679 331 8074 [email protected] www.adb.org/tuvalu

ADB Headquarters 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Tel +63 2 8632 4444 About Tuvalu and ADB Fax +63 2 8636 2444

ADB Membership Ministry of Finance Joined 1993 Private Mail Bag, Funafuti, Tuvalu Shareholding and Voting Power Tel +688 20202 (dir) Number of shares held: 150 (0.001% of total shares) Fax +688 20210 Votes: 39,264 (0.295% of total membership, 0.453% of total regional membership) Useful ADB websites Overall capital subscription: $2.07 million Paid-in capital subscription: $0.11 million Asian Development Bank www.adb.org Seve Paeniu is the Governor and Karlos Lee Moresi is the Alternate Governor for Tuvalu in ADB. Annual Report Tony McDonald is the Director and Scott Dawson is the Alternate Director representing Tuvalu www.adb.org/documents/series/adb-annual- on the ADB Board of Directors. reports is the ADB Regional Director of the Pacific Subregional Office (SPSO) in Suva, Masayuki Tachiiri Asian Development Outlook Fiji. SPSO was opened in 2004 and provides the primary operational link for activities between ADB and the governments of the subregion, the private sector, civil society stakeholders, and development www.adb.org/publications/series/asian- partners. The subregional office engages in policy dialogue, country partnership strategy development development-outlook and programming, and portfolio management, while also acting as a knowledge base on development issues in the Cook Islands, Fiji, Kiribati, Niue, Samoa, Tonga, and Tuvalu. ADB Data Library data.adb.org In 2018, ADB approved the establishment of a country office in Tuvalu. The office strengthens the bank’s presence in the country, working to enhance the relationship between ADB and the government, improve development partner coordination, and help build local capacity in the design and implementation of ADB-supported projects.

The Tuvalu government agency handling ADB affairs is the Ministry of Finance. About the Asian Development Bank ADB is a multilateral development bank owned by 68 members, 49 from the region and 19 from other parts of the world. ADB’s main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. In 2019, lending volume was $20.47 billion (133 projects), with technical assistance at $237.31 million (252 projects) and grant-financed projects at $844.07 million (31 projects). In addition, $11.86 billion was generated for sovereign and nonsovereign cofinancing in the form of loans and grants, B loans, risk transfer arrangements, guarantee cofinancing, parallel loans, parallel equity, and cofinancing for transactions under ADB’s Trade Finance Program. From 1 January 2015 to 31 December 2019, ADB’s annual lending volume averaged $17.41 billion. In addition, investment grants and technical assistance funded by ADB and Special Funds resources averaged $702.60 million and $202.27 million over the same period. As of 31 December 2019, the cumulative totals excluding cofinancing were $296.28 billion in loans for 3,221 projects in 44 countries, $10.23 billion in 409 grants, and $4.72 billion in technical assistance grants, including regional technical assistance grants.

Notes: ADB welcomed Niue as its 68th member in March 2019. Figures are estimated by ADB unless otherwise stated. “$” refers to United States dollars. Data are updated as of 31 December 2019 unless otherwise indicated.