IN.38-19 6 March 2019
Validation Report Fiji: Validation of the Country Partnership Strategy Final Review, 2014–2018
The attached report is circulated at the request of the Director General, Independent Evaluation Department. The report is also being made publicly available.
For Inquiries: Walter Kolkma, Independent Evaluation Department (Ext. 4189) Linda Adams, Independent Evaluation Department (Ext. 5351) CPS Final Fiji Review Validation of the Country Partnership Validation Strategy Final Review, 2014–2018
Independent Evaluation
Raising development impact through evaluation Validation Report March 2019
Fiji: Validation of the Country Partnership Strategy Final Review, 2014–2018
This document is being disclosed to the public in accordance with ADB’s Access to Information Policy.
Independent Evaluation: VR-32
NOTES
(i) The fiscal year of the Government of Fiji ends on 31 July.
(ii) In this report, “$” refers to United States dollars.
(iii) For an explanation of rating descriptions used in Asian Development Bank (ADB) evaluation reports, see ADB. 2015. 2015 Guidelines for the Preparation of Country Assistance Program Evaluations and Country Partnership Strategy Final Review Validations. Manila.
Director General Marvin Taylor-Dormond, Independent Evaluation Department (IED) Deputy Director General Véronique N. Salze-Lozac'h, IED Director Walter Kolkma, Thematic and Country Division, IED
Team leader Linda Adams, Senior Evaluation Specialist, IED Team member Christine Grace Marvilla, Evaluation Assistant, IED
The guidelines formally adopted by the Independent Evaluation Department (IED) on avoiding conflict of interest in its independent evaluations were observed in the preparation of this report. To the knowledge of IED management, there were no conflicts of interest of the persons preparing, reviewing, or approving this report.
In preparing any evaluation report, or by making any designation of or reference to a particular territory or geographic area in this document, IED does not intend to make any judgments as to the legal or other status of any territory or area.
Abbreviations
ADB – Asian Development Bank COBP – country operations business plan CPS – country partnership strategy CPSFR – country partnership strategy final review DFAT – Department of Foreign Affairs and Trade EFL – Energy Fiji Limited FRA – Fiji Roads Authority GAP – gender action plan GDP – gross domestic product MFF – multitranche financing facility PARD – Pacific Department (Asian Development Bank) PSD – private sector development PSDI – private sector development initiative PSM – public sector management RCI – regional cooperation and integration SDG – Sustainable Development Goal SOE – state-owned enterprise SPC – Secretariat of Pacific Community SPSO – Pacific Subregional Office in Suva, Fiji TA – technical assistance WAF – Water Authority of Fiji WUS – water and other urban infrastructure and services
Currency Equivalents (as of 22 February 2019)
Currency unit – Fiji dollars (F$) F$ 1.00 = $0.46840 $1.00 = F$ 2.149
Contents
Acknowledgments ...... vii Executive Summary ...... ix
Chapter 1: Introduction ...... 1 A. Validation Purposes and Procedures ...... 1 B. Country Development Context and Government Plans ...... 1 C. Objectives of the Country Partnership Strategy, Priorities, and the Roles of Major Development Partners ...... 5
Chapter 2: Portfolio Overview ...... 7
Chapter 3: Validation of the Country Partnership Strategy Final Review...... 11 A. Relevance ...... 11 B. Effectiveness ...... 14 C. Efficiency ...... 19 D. Sustainability ...... 22 E. Development Impacts ...... 24 F. ADB and Borrower Performance ...... 30 G. Overall Assessment ...... 31 H. Assessment of Quality of Self-Evaluation ...... 32
Chapter 4: Key Lessons and Recommendations ...... 34 A. Key Lessons ...... 34 B. Recommendations to ADB ...... 36
Appendixes 1. ADB Country Portfolio for Fiji, 2014–2018 ...... 40 2. ADB Country Portfolio by Sector at Project Design Stage ...... 42 3. Portfolio of Projects Approved, Completed, and Ongoing, 2014–2018 —Delays and Cost Overruns ...... 43 4. Scores Assigned to Sector and Cross-cutting Objectives ...... 45 5. List of Linked Documents ...... 46
Acknowledgments
This report was prepared by Linda Adams as team leader and Christine Grace Marvilla as member. International consultant, Dorothy Lucks; and national consultants, Alexis Arthur Garcia and Mere Naulumatua, provided valuable inputs. Director General Marvin Taylor-Dormond, Deputy Director General Véronique Salze-Lozac’h, and Director Walter Kolkma (Thematic and Country Division) provided overall guidance.
The report benefited from external peer review of the draft by Gabriele Ferrazzi. Internal comments from Farzana Ahmed, Joanne Asquith, Tania Rajadel, Jose Antonio Tan III, and Kapil Thukral of the Independent Evaluation Department (IED) improved the quality of the report. IED’s Alvin Morales assisted in the preparatory activities.
The team is grateful to Asian Development Bank staff at headquarters; the Pacific Department; Private Sector Operations Department; Sustainable Development and Climate Change Department; Strategy, Policy and Review Department; the Pacific Subregional Office in Suva, Fiji; the Pacific Liaison and Coordination Office in Sydney, Australia; and the Government of Fiji officials and other stakeholders for useful discussions and inputs.
IED retains full responsibility for this report.
Executive Summary
The Asian Development Bank country partnership strategy (CPS), 2014–2018 for the Republic of Fiji had three key objectives: (i) raising Fiji’s growth potential by encouraging private sector investment, (ii) making growth more inclusive and improving service delivery, and (iii) reducing volatility and building resilience. ADB’s sovereign financing, including cofinancing in the form of loans, grants, and technical assistance during 2014–2018 amounted to $142.5 million.
This validation considered the program successful. The CPS was relevant to supporting the reengagement of the Government of Fiji. The operations have resulted in borderline effective outputs and outcomes across the transport, water, energy, and public sector management sectors. The program has suffered substantial delays and implementation challenges and is assessed less than efficient. Evidence suggests the likely sustainability of the program, with investments in the portfolio being continued by the government. Program impact is satisfactory, although the extent of the benefits has not been fully demonstrated.
This report makes five recommendations: (i) pay more attention to tailored capacity development in the next Fiji CPS for long-term sustainable results; (ii) pursue the improvement of financial, climate, and social resilience in Fiji and define ADB’s role with relevant and realistic support; (iii) invest in project design and implementation that actively ensure benefits to vulnerable citizens; (iv) develop a specific private sector development approach in the next CPS; and (v) integrate the Fiji program with ADB’s other strategic regional programs. ADB has taken on a leadership role among development partners in Fiji. However, the space is becoming competitive. It is important that ADB works in partnership with other development partners to avoid stretching limited capacity through clearer programming that aims for more specific synergies.
The Independent Evaluation Department (IED) state susceptible to various shocks, especially validated the country partnership strategy final natural disasters. The country’s debt is forecast to review (CPSFR), Fiji 2014–2018 prepared by the reach 47.5% of gross domestic product (GDP) in Pacific Department as part of the due process. The 2018, which is close to the government’s self- CPSFR rated the program successful, highly imposed debt ceiling of 50%. Unemployment was relevant, effective, less than efficient, likely 4.5% in 2017. The unemployment rate for women sustainable, and satisfactory in development (7.8%) is significantly higher than for men (2.9%). impacts. In February 2016, the country was hit by a This validation is based on the information category 5 storm. Tropical cyclone Winston caused presented in the CPSFR, supplemented by a review widespread destruction and had a negative impact of the project documents and reports, country on the economy, particularly in the agriculture data, and consultations with Asian Development sector. Fiji has had a relatively volatile political Bank (ADB) staff, government, and other history, with several military coups since gaining stakeholders during the validation mission in independence from the United Kingdom in 1970. October 2018. A military coup in 2006 saw the elected government ousted and Fiji suspended from the Country Context Commonwealth until 2014. During this period, ADB ceased new programming but continued to Fiji is a middle-income country and is on track to support ongoing programs through additional achieve its ninth consecutive year of growth since financing, emergency grants, and loans. Upon 2010. However, Fiji is a small island developing formal reengagement in 2014, ADB prepared a
x Fiji: Validation of the Country Partnership Strategy Final Review, 2014–2018
new country partnership strategy (CPS) and country program and initial projects was short, recommenced its support. compromising the depth of analysis and clarity of approaches. The portfolio’s limited focus on Country Partnership Strategy and ADB climate-proofing infrastructure investments and support for PSM emergency relief reflected limited Support engagement within a wider strategic and transformational systems approach to building The CPS, 2014–2018 was developed following national resilience. consultations with the government, development partners, and other stakeholders soon after the agreement for reengagement. The CPS aligned Assessment with the strategic priorities of the Government of Fiji, as well as the priorities set out in ADB’s Relevance. The CPSFR assessed the CPS as highly Strategy 2020. The CPS has three core objectives: relevant. It found that the CPS successfully (i) raising Fiji’s growth potential by encouraging positioned ADB as the lead donor at the time of private sector investment, (ii) making growth more reengagement, meaning ADB was able to move inclusive and improving service delivery, and quickly to re-establish development partner (iii) reducing volatility and building resilience. relationships with the government. This validation agrees that the intent and strategies were highly The CPS consisted of 18 grants, technical relevant given the context at the time of the CPS, assistance (TA) projects, and lending instruments. and that the government was highly appreciative Projects in the CPS related to transport, water and of ADB support. However, the CPS targets were other urban infrastructure and services (WUS), ambitious for the 4 years immediately after public sector management (PSM), energy, reengagement, and indicative allocations towards information and communications technology, and key drivers for environmentally sustainable agriculture and natural resources (ANR). Eleven growth, gender, and private sector development projects had been completed at the time of the (PSD) were not well substantiated. Project design validation and seven were ongoing. In total, 45% did not clearly identify mechanisms to contribute of the financing was in transport, 23% in PSM, to portfolio poverty reduction targets with 23% in WUS, 6% in ANR, 0.4% for energy, and improvements in income and social resilience for 0.08% for information and communication vulnerable citizens. The reengagement process technology. was an important and potentially innovative feature that could have been given more PSM financing went mainly to emergency support attention. Overall, the validation team assessed (primarily road rehabilitation). PSM projects also the CPS relevant. covered assistance to the divestment of state- owned enterprises (SOEs), complemented by a Effectiveness. The CPSFR assessed the large regional TA project, the Public Sector implementation effective. WUS projects resulted in Development Initiative. policy and procedure changes. The water supply investments were designed to expand public water supply to less served areas of Suva, the Barriers to the Country Partnership capital. Road infrastructure projects were Strategy instrumental in addressing access issues and contributed to an improved road network. ADB’s A few barriers and limitations impacted the overall effectiveness relates strongly to its expertise and success of the CPS. One of the most significant the wide range of lending modalities available, constraints related to the government’s capacity which gave it the ability to package designs and following the 2006 military coup. The newly leverage resources successfully with other established government in 2014 was development partners. However, the validation inexperienced in project design and found little evidence to support a higher implementation and had limited knowledge of effectiveness rating post-reengagement. While ADB processes, particularly more complex lending operations which were ongoing prior to modalities. The rapid generation of the CPS and reengagement and ADB’s emergency operations the need for ADB to quickly establish projects are rated successful, there has been limited meant that the preparation period for both the progress in key transport sector and water and Executive Summary xi
urban projects under post- reengagement efforts. economic growth was one of the CPS pillars; Challenges relating to staffing and capacity have however, inclusive targeting in projects was negatively impacted project implementation. relatively low. The Suva–Nausori Water Supply and Consequently, this validation considers the Sewerage Project targeted informal settlements in program to have been borderline effective. the greater Suva area with the aim of providing residents with improved access to water. In terms Efficiency. The CPSFR assessed the CPS less than of spatial vulnerability, the CPS could have done efficient. All transport-related projects in the more to build climate change resilience, portfolio suffered from considerable delays, cost particularly in the transport sector. The expected overruns, problems with recruitment and results for gender equity did not materialize as procurement, lack of skilled suitable staff and targeted in the CPS. Little documented evidence technical support, inadequate disbursement of on impact is available; however, there was funding, and lack of evidence of vulnerable people sufficient indicative data gathered by the being targeted. Water supply services performed validation team to assess development impacts as well in terms of reaching targets but also satisfactory overall. Active engagement with experienced delays. The CPSFR rated the energy TA regional projects which support CPS key drivers as less than efficient because of the 1-year delay may have enhanced impact. on completion and need for further extension. These projects took place during a time of ADB Performance. This validation assesses ADB’s reengagement when processes were embryonic performance as satisfactory. ADB’s presence and hence the government took time to enabled rapid response and productive dialogue. refamiliarize itself with procurement and ADB support in navigating safeguards and compliance with safeguards, and institutional procurement procedures, particularly for more arrangements were evolving. Solutions to complex modalities, played an important role in overcome these challenges have been gradually seeking to improve project implementation found in most instances, and implementation is performance. However, the limited support for accelerating. This validation confirms the social inclusion and gender equity affected assessment as less than efficient. performance. ADB participated actively in informal development partner meetings and in leveraging Sustainability. The CPSFR assessed the program cofinancing opportunities. However, it could have likely sustainable. The validation team found sought greater coordination with development evidence that the government is building on and partners and civil society organizations in continuing investments in the portfolio. For optimizing inclusion and capturing benefits linked instance, it is providing maintenance budgets for to the CPS objectives of generating more inclusive infrastructure and progressing TA growth and optimizing employment. ADB recommendations. The adoption of the “build designed a CPS that appropriately addressed the back better” approach by the government, development challenges as expressed in national including climate resilience measures in development and sector strategies. Given the infrastructure design, suggests a commitment to substantial period of disengagement, ADB could ongoing investment in more climate-resilient have given more attention to determining a infrastructure. However, capacity remains an reengagement strategy and incorporating lessons issue. This validation finds that the program is identified in the Review of ADB Engagement in Fiji, likely sustainable. 2006–2013 and the proposed focus in the CPS to support income distribution, specific efforts for Development impacts. The CPSFR rated the the vulnerable, and integration of Fiji into Pacific development impacts of the program satisfactory. regional structures. The validation team found that positive outcomes have been achieved, particularly in relation to the Government performance. This validation concurs improved provision of service for roads and water with the CPSFR’s satisfactory performance rating. supply. The support of SOEs has delivered results The government has shown a high level of in terms of improved financial resilience of the commitment to improving transport infrastructure government. However, the extent of people and creating an enabling environment for PSD resilience in terms of services and employment for through the regular allocation of maintenance vulnerable people is less evident. Inclusive budgets and execution of policy reforms. xii Fiji: Validation of the Country Partnership Strategy Final Review, 2014–2018
However, the government’s implementing (iii) Relationship building through TA and agencies have specific challenges understanding emergency response can develop and developing competence in ADB safeguards opportunities to expand the country and procurement procedures. Although positive portfolio. macroeconomic benefits are being pursued with (iv) A desire for rapid reengagement can result ongoing SOE divestment and public management in some development risks being reforms, institutional changes of key government overlooked. partners (Fiji Roads Authority, Water Authority Fiji, (v) Expectations for the projects’ and Energy Fiji Limited) have also created implementation need to consider the challenges associated with transitioning and country’s limited experience, expertise, adoption of new business models. and technical capacity, especially soon after reengagement. Overall. This validation confirms the findings of (vi) Periodic reviews post-reengagement can the CPSFR that ADB’s country program in Fiji in strengthen implementation and support 2014–2018 was successful. The validation team program adjustments. assesses that the choice of sector and financing (vii) Gender and other cross-cutting issues instruments was relevant and commensurate with require specific attention and application the joint objectives of ADB and the government. of expertise if results are to be achieved. The CPS targets could have been more realistic (viii) Encouraging private sector investment to given the context of reengagement and the support growth is unlikely to generate implementation capacity available. Several results if there is no deep understanding strategic approaches outlined in the CPS were not of the unique constraints facing small fully reflected in the programming and, while island developing states. operations before engagement were rated effective, post-reengagement efforts provided Recommendations little evidence to support full effectiveness and suffered from continuing capacity problems The validation agrees with the recommendations (Table 7). in the final review and adds five new. They are further elaborated on in the final chapter. Key Lessons Pay more attention to tailored capacity The CPSFR identified 10 combined lessons and development in the next Fiji CPS for long-term recommendations centered on (i) the need for sustainable results. Consider the changing flexibility in implementation, close cooperation institutional context for capacity development with partners, and building capacity; (ii) finding support and allocate resources for TA for opportunities for private sector investment; implementing partners, in line with emerging (iii) managing risks; (iv) using concessional requirements. Improve the assessment of capacity resources to respond to major disasters; and gaps through institutional assessments. Prepare (v) finding options to strengthen inclusion. Rather tailored capacity development plans to equip local than lessons, many of the statements were actors with the skills and competencies they need formulated as issues or as presentation of to functionally execute sector programs and opportunities. Many would be better presented as projects. Strategic capacity development can focus a checklist of key elements to consider on investing in local institutions, rather than the in preparing the next CPS. The following lessons current heavy reliance on external experts in key deepen the emphasis on the above points: implementing agencies. ADB can support Fiji’s capacity needs, as well as Fiji’s leadership role in (i) A “build back better” approach can capacity development, through investing in address the dual objectives of improving centers of excellence, such as the University of the infrastructure resilience and enhancing South Pacific, as a key agent. Implement such a support for social protection programs. program within the first 2 years of the new CPS (ii) The use of traditional civil society period given the complexity of new financing organizations can both serve as a conduit instruments and approaches. Such a program for participation and reduce safeguards would include providing expertise to improve risk. knowledge and practice on safeguards, Executive Summary xiii
procurement, and gender mainstreaming Develop a specific private sector development compliance. ADB is currently the preferred lender approach in the next CPS. Continue support to and a leader in the Pacific region. ADB must SOE reform under ADB’s program to improve continue to provide leadership in skills and governance in PSM to assist in ongoing provision of advice in key areas of technical restructuring and reform. Other opportunities for competency to maintain this position. PSD should also be explored. PSD should draw on ADB’s existing programs and experience in both Pursue the improvement of financial, climate, and the sovereign and nonsovereign projects and look social resilience in Fiji and define ADB’s role with for partnerships and complementarity with other relevant and realistic support. Define ADB’s role development organizations operating in within the new CPS, based on the experience of supporting PSD. A more comprehensive approach implementing the third pillar in the CPS, 2014– to optimizing PSD should include continued 2018 to help position ADB’s support where it is support to the corporatization of key government most relevant and define realistic targets. ADB’s entities; gradual removal of business barriers to role is most likely to be in the provision of climate- encourage both homegrown companies as well as resilient infrastructure. If planning a broader external investors; tax incentives to target entry strategic and transformational approach to and growth of specific industries in Fiji (e.g., resilience that will integrate with other forms of energy sector); exploration of credit enhancement resilience initiatives, ADB’s role and the expected products to protect the private sector against key targets should be more clearly stated and tracked risks; and targeted enabling measures to support than in the CPS, 2014–2018. If a higher strategic small and medium enterprises (e.g., access to emphasis on resilience and stronger partnership is finance and pro-poor business advisory services in envisaged with development partners that have high-growth potential sectors). Such coordination complementary expertise in disaster planning and with development partners is essential to management or engagement with government optimizing development impacts as well as agencies guiding national climate resilience and addressing the problem of the government’s disaster risk management policy, this should be limited capacity and reducing the confusion of clearly identified. The emphasis would be on multiple approaches and duplication of efforts. building climate and disaster risk resilience through projects, as opposed to resilience of Integrate the Fiji program with ADB and other projects. strategic regional programs. Continue to pursue the government’s interest in integrated transport Invest in project design and implementation that options within and beyond Fiji. Pursue synergies actively ensure benefits to vulnerable Fiji citizens. with other development partners in areas where CPS targets need to be closely linked to ADB ADB has a comparative advantage. Include a more interventions and then tracked throughout strategic link between the CPS and regional implementation to assess the progress of impact, initiatives both within ADB and with regional particularly in relation to inclusive growth. Project agencies based in Fiji in areas of importance to the designs should identify measures for inclusivity ADB portfolio, particularly regarding climate that translate into improvements in terms of resilience, sustainable transport, and PSD for access and income, particularly for women, inclusive growth. marginalized, or vulnerable citizens. ADB should link investments with the government and other development partners that provide economic and social services to widen inclusion and capture the benefits from infrastructure. ADB should hone in on its comparative advantage in relation to inclusive access to infrastructure and services rather than on sectors more typically associated with inclusion (health and education); where other development partners are progressing efforts and ADB is currently less active.
CHAPTER 1 Introduction
A. Validation Purposes and Procedures
1. This report was prepared by the Independent Evaluation Department (IED) of the Asian Development Bank (ADB) to validate the findings and recommendations of the country partnership strategy final review (CPSFR), Fiji 2014–2018. The CPSFR1 was prepared by the Pacific Department (PARD) in July 2018 as part of the self-evaluation process to review and assess overall country partnership strategy (CPS)2 performance. The assessment covered loan, grant, and technical assistance (TA) projects approved or implemented during 2014–2018. The CPSFR assessed ADB’s operations as successful overall. The CPSFR concluded that the CPS, 2014–2018 was highly relevant to Fiji, was effective and less than efficient in achieving results, and that those results are likely to be sustainable. Further, the CPSFR assessed the CPS as achieving satisfactory development impacts.
2. The purpose of this report is to (i) validate the findings and assessments of the CPSFR with respect to the relevance, efficiency, effectiveness, sustainability, and development impacts of the country portfolio; (ii) assess the quality of self-evaluation in terms of assessment of results; (iii) identify lessons and recommendations for improving the development effectiveness of ADB investments in Fiji; and (iv) identify issues and provide recommendations for the preparation of CPS, 2019–2023. IED did not validate project-level self-evaluations.
3. This report was prepared following ADB’s 2015 Guidelines for the Preparation of Country Assistance Program Evaluations and CPSFR Validations.3 The assessment is based on (i) review of documents, including the CPS, CPSFR, country operations business plans, reports and recommendation of the President, project and TA completion reports, and country-specific national development strategy documents; (ii) consultations from 8 to 17 October 2018 in Fiji with stakeholders, including government and non-government entities and beneficiaries of development assistance; and (iii) discussions with staff of the resident mission and other development partners in the country.
B. Country Development Context and Government Plans
4. Fiji is one of the larger and more developed islands in the Pacific. According to 2017 census data,4 Fiji’s total population was 884,887. The largest group of people live in the capital city of Suva, which has almost 186,000 residents.5 The rest of the population is scattered over 110 inhabited islands.
5. Despite positive economic growth indicators, Fiji is characterized by several elements associated with fragile states. These include, for example, regular exposure to climate-related disasters; lack of economic diversity with dependence on tourism, which is a volatile sector; and persistent connectivity issues as a small island developing state. Fiji is vulnerable to natural disasters, including cyclones, floods, earthquakes, and tsunamis. Throughout the CPS period, 2014–2018, ADB provided support for disaster
1 ADB. 2018. Country Partnership Strategy Final Review, Fiji 2014–2018. Manila. Attached in this report in Linked Document A. 2 ADB. 2014. Country Partnership Strategy: Fiji, 2014–2018. Manila. 3 IED. 2015. Guidelines for the Preparation of Country Assistance Program Evaluations and Country Partnership Strategy Final Review Validations. Manila: ADB. 4 City Population. Fiji Divisions and Provinces. http://www.citypopulation.de/Fiji.html (accessed 20 November 2018). 5 Footnote 4.
2 Fiji: Validation of the Country Partnership Strategy Final Review, 2014–2018
mitigation and management. In February 2016, Fiji was hit by tropical cyclone Winston, accompanied by storm surges and flooding, which led to a state of natural disaster being declared for 30 days. Across Fiji, the cyclone caused loss of life, widespread destruction, and extensive power, water, and communication outages.
6. Fiji gained independence from the United Kingdom in 1970 and joined ADB the same year. Since independence, Fiji has had a relatively volatile political history. There have been four coups d’états in Fiji. Two coups in 1987 on 14 May and 28 September, one on 19 May 2000, and another one in December 2006. Consequently, the nation was suspended from the Commonwealth until September 2014. The suspension was rescinded following the first democratic elections since the re-writing of the constitution in 2013. Many development partners also suspended their programs, including ADB, and many reengaged after the elections. Following the elections of 17 September 2014, Fiji is governed by the Fiji First Party under the leadership of Frank Bainimarama, who has held the office of Prime Minister since 2007. Jioji Konrote has been the President of Fiji since 2015.
7. The foundation of the Fiji Roadmap, 2010–2014 is the 2008 People’s Charter for Change, Peace, and Progress. The 2008 People’s Charter for Change, Peace, and Progress6 was a proposed amendment to the Fijian Constitution.7 However, despite being distributed as a draft, it was never actually implemented due to the constitutional crisis of 2009 which saw the Fijian Constitution abrogated. The constitution was subsequently updated in 2013. The Fiji Roadmap for Democracy and Sustainable Socioeconomic Development, 2010–20148 and the 2014 Green Growth Framework for Fiji9 set out Fiji’s strategic objectives at the time of CPS design. The Roadmap for Democracy and Sustainable Socioeconomic Development, 2010–2014 is a strategic framework to help Fiji achieve “sustainable democracy, good and just governance, socioeconomic development and national unity”.10 According to the Roadmap for Democracy and Sustainable Socioeconomic Development, 2010–2014, the overarching objective is to “rebuild Fiji into a non-racial, culturally vibrant and united, well-governed, truly democratic nation that seeks progress and prosperity through merit-based equality of opportunity and peace”.11 All three documents share the common vision of “A Better Fiji for All”. The guiding principles of the Green Growth Framework include reducing Fiji’s carbon footprint, improving resource use and productivity, strengthening education around environmental stewardship and civic responsibility, adopting comprehensive risk management practices, and sound environmental auditing, among others.12 The framework is intended as a supporting document to the Roadmap for Democracy and Sustainable Socioeconomic Development, 2010–2014 and the People’s Charter for Change, Peace, and Progress.
8. CPS, 2014–2018 is underpinned by several core government plans and strategies. ADB loans and TA projects have aligned with government with policies such as Fiji’s 5-Year and 20-Year National Development Plan (2017).13 These set out goals in the areas of (i) inclusive socio-economic development, and (ii) transformational strategic thrusts, which inform the CPS pillars. The National Development Plan was developed in 2017, so it cannot be expected to be fully represented in the CPS. Nonetheless, the strategic intent of Fiji has been consistent since 2014. The CPS notes that the Green Growth Framework is intended to be “a transformative tool to accelerate integrated, inclusive, and sustainable development to build environmental resilience, enhance social development, and promote economic growth”. The CPS
6 National Council for Building a Better Fiji. 2008. The People’s Charter for Change, Peace, and Progress. Suva. 7 Government of Fiji. 2013. Constitution of the Republic of Fiji. Suva. 8 Government of Fiji. Ministry of National Planning. 2009. Roadmap for Democracy and Sustainable Socio-economic Development, 2010–2014. Suva. 9 Government of Fiji. Ministry of Strategic Planning, National Development and Statistics. 2014. A Green Growth Framework for Fiji: Restoring the Balance in Development that is Sustainable for Our Future. Suva. 10 Footnote 8, pp vii. 11 Footnote 8. 12 Footnote 9, pp. 6. 13 Ministry of Economy. 2017. 5-Year and 20-Year National Development Plan: Transforming Fiji. Suva.
Introduction 3
assumed that critical economic infrastructure such as energy, transport, and water and other urban infrastructure (WUS) and services would remain priority sectors for investment.
9. Fiji is a middle-income country on track to achieve its ninth consecutive year of growth in 2018. Since 2010, economic growth in Fiji has averaged slightly over 3.0% per annum. Gross domestic product (GDP) growth in 2016 was 0.7% while provisional growth estimate for 2017 is 3.0%.14 Gross national income per capita in Fiji was $4,970 in 2017.15 The services industry dominates economic activity.16 The leading sector for growth is tourism while sugar is the main source of income for the rural economy. In 2016, when tropical cyclone Winston severely damaged Fiji’s agriculture sector, sugar cane production fell by 24.8%.
10. The government places importance on both domestic and foreign direct investment to foster economic growth. The government is promoting Fiji as a lucrative investment hub in the Pacific. To this end, it is improving tracking of investor registration and implementation of investment projects and reducing the turnaround time for obtaining investor licenses and other regulatory approvals from concerned agencies. The government allocated $2.6 million in the 2017–2018 budget to Investment Fiji, an independent marketing arm of the Government of Fiji, to provide services to stimulate increased investments and exports.17 Some specific investment reforms in Fiji include (i) the launch of the Foreign Investment Act of 2016, (ii) development of a customer relationship management system for investment donor tracking, and (iii) trade and investment promotion missions. 18
11. The government has undertaken structural reforms to help stimulate growth. Since 2014, Fiji has aimed to restructure selected state-owned enterprises (SOEs), reform the native land lease market, and lower corporate and personal tax rates. Fiscal deficits fell from 4.3% of GDP in 2014 to an average of 3.4% between 2015 and 2018, slightly higher than the initial target of 3.0%. The share of public sector debt to GDP declined from 50.8% in 2013 to 48.4% in fiscal year 2017 and 50.0% in 2018; still higher than the government targeted reduction to 40% by 2031.19 The unemployment rate decreased to 4.5%, lower than the 5.5% unemployment rate estimated from the 2015–2016 Employment and Unemployment Survey.20 Disaggregated by sex, 2017 unemployment figures showed that female unemployment rate (7.8%) is higher than males (2.9%).21
12. Fiji has one of the lowest poverty rates in the Pacific, but income disparity is still prevalent. At the time of writing, the 2017 census data collection is still under analysis. Consequently, much of the socioeconomic data in this report relies on data collected in the previous census in 2007. However, World Bank data from April 2018 shows poverty rates declined from 22% in 2002–2003 to 14.3% in 2013–2014 (using the international poverty line of $3.20 per day, 2011 purchasing power parity).22 While no new data is available since the release of the Household Income and Expenditure Survey of 2013–2014, Fiji’s
14 Fiji Bureau of Statistics. 2018. Fiji’s Gross Domestic Product 2017. Suva. https://www.statsfiji.gov.fj/index.php/latest-releases/national-accounts/852-fiji-s-gross-domestic-product-gdp-2017 15 World Bank. Fiji Poverty and Equity Data Portal. http://povertydata.worldbank.org/poverty/country/FJI (accessed 20 November 2018). 16 Government of Fiji. Ministry of Economy. 2017. Economic and Fiscal Update: Supplement to the 2017–2018 Budget Address. Suva. 17 Footnote 16. 18 Investment Fiji. 2018. Role of Investment. Suva. http://www.investmentfiji.org.fj/pages.cfm/ftiborgfj/about-ftib/role-of-ftib.html (accessed 20 November 2018). 19 Reserve Bank of Fiji. Macroeconomic and Financial Data for Fiji. https://www.statsfiji.gov.fj/index.php/latest-releases/national-accounts/852-fiji-s-gross-domestic-product-gdp-2017 (accessed on 2 January 2019); and Footnote 1. 20 Fiji Bureau of Statistics. 2018. 2017 Population and Housing Census. Suva. https://www.statsfiji.gov.fj/index.php/census-2017/874-census-release-1-2018 21 ADB. 2018. Basic 2018 Statistics. Manila. 22 World Bank. 2018. Fiji Poverty and Equity Brief: Spring 2018. Washington, D.C.
4 Fiji: Validation of the Country Partnership Strategy Final Review, 2014–2018
economic growth suggests that poverty rates have continued to decline over the CPS period.23 Higher incidences of poverty are associated with ethnicity, gender, and education. Poverty rates are among the highest in informal or squatter settlements, where the average poverty rate is 38%. In households with an education level below secondary level, poverty rates are significantly higher (approximately 50%) compared to households that have attained post-secondary education (10.3%). Gender also has a significant impact on poverty rates. While female participation in the workforce has increased, women still perform most of the household work.
13. Fiji made considerable progress towards the Millennium Development Goals (MDGs) and Sustainable Development Goals (SDG). Fiji actively implemented the MDGs and is proactively pursuing the SDGs. By 2014, 34% of the population lived below the national poverty line in comparison to 36% in 2008 and 40% in 2002. The introduction of free primary and secondary education in 2013 helped accelerate progress towards universal access to education.24 Fiji has a high literacy rate. In 2017, the literacy rate was reported as 99%, which exceeds the world average of 95.3%.25 Maternal mortality rates and the mortality rate of children under the age of 5 have declined.26
14. The Government of Fiji has taken several steps towards advancing the internal capacity of staff and members of parliament in relation to the SDGs. The Parliament has developed a gender analysis tool kit and engaged in the promotion of the SDGs among the public through the organization of “Speaker’s Debates”. The government’s self-assessment concluded that the lack of a national action plan towards achieving the SDGs meant that the goals do not draw upon the local context or galvanize citizens’ participation. The self-assessment also noted issues with the financing of the SDGs, monitoring of implementation, and engaging the public.27 Further insights into Fiji’s progress towards the SDGs are expected in 2019 when a Voluntary National Review is scheduled.
15. While socioeconomic gains are reflected in health and education, challenges remain, with persistent gender inequality undermining optimal economic growth potential. Fiji ranks 91 out of 159 countries in the Gender Inequality Index, which measures gender-based disparities in three dimensions— reproductive health, empowerment, and economic activity.28 Fiji ranks 121 out of 144 countries in the Global Gender Gap Index, which ranks gender parity across four areas—economic participation and opportunity, educational attainment, health and survival, and political empowerment.29 Fiji is ranked at 120 out of 136 in terms of women’s empowerment, as illustrated by women’s low participation rates in Parliament, where women hold 8 out of 50 seats (16%), including holding the role of Speaker.30 There is a significant difference in labor force participation rates between men and women, with participation at 76.4% for men and 37.4% for women.31 Reported levels of gender-based violence are also among the highest in the world with 64% of women aged 16–64 having experienced physical and/or sexual violence by their husband or partner, which affects women’s ability to work and perform at their jobs.32 The global average of gender-based violence is 30%.
23 Fiji Bureau of Statistics. 2017. Household Income and Expenditure. Suva; and Footnote 1. 24 Footnote 1. 25 World Bank. Adult Literacy Rate. https://data.worldbank.org/indicator/SE.PRM.ENRR?locations=FJ (accessed on 2 January 2019). 26 Footnote 13. 27 Parliament of the Republic of Fiji. 5 March 2018. The Parliament of Fiji and the Sustainable Development Goals: A Self- Assessment, 3-6 October 2017. Suva. 28 United Nations Development Programme (UNDP). 2016. Human Development Index. New York. 29 World Economic Forum. 2013. The Global Gender Gap Report 2013. Geneva. 30 As of 2014 elections. 31 Fiji Bureau of Statistics. 2018. 2017 Population and Housing Census–Release 2. Suva. 32 Fiji Women’s Crisis Center. 2013. Somebody’s Life, Everybody’s Business! National Research on Women’s Health and Life Experienced in Fiji. Suva. Introduction 5
C. Objectives of the Country Partnership Strategy, Priorities, and the Roles of Major Development Partners
16. ADB ceased new programming in 2006 due to political tensions but continued support for ongoing programs and climate-related disasters. After the flooding in January 2009, ADB granted an emergency assistance loan requested by the government. Between 2009 and formal reengagement in 2014, ADB provided emergency loans, grants, and TA through eight ongoing projects. Of these eight, two were emergency assistance loans and two were supplementary funding for ongoing projects that commenced before 2006. Upon formal reengagement, ADB prepared a new CPS to allow new programming to begin, especially for the transport sector.
17. The CPS, 2014–2018 was developed in consultation with the government, development partners, private sector representatives, civil society, and other stakeholders, following national elections held in September 2014. The CPS was aligned with the strategic priorities of the Government of Fiji and the priorities set out in ADB’s Strategy 2020,33 which included private sector development (PSD), governance and capacity development, as well as enhancing gender mainstreaming, knowledge solutions and partnerships The development of the CPS involved a series of background papers as well as a risk assessment and risk management plan and summary of country cost-sharing arrangements and eligible expenditure financing parameters, to assist in the analysis of the country context and contribute to strategic discussions.34
18. The CPS, 2014–2018 had three key objectives: (i) raising Fiji’s growth potential by encouraging private sector investment, (ii) making growth more inclusive and improving service delivery, and (iii) reducing the volatility of growth and building resilience to climate-related disasters. The CPS corresponds with important ADB strategic agendas and drivers of change—inclusive economic growth, environmentally sustainable growth, and PSD. The CPS also identified other cross-cutting agendas and themes: gender equity and mainstreaming, and regional cooperation and integration (RCI).
19. The indicative financing allocations in the CPS, 2014–2018 placed a strong emphasis on gender equity mainstreaming. The CPS results framework focused on four sectors: transport, WUS, energy, and public sector management (PSM). As required by ADB CPS guidelines at the time of the CPS design, indicative resource allocations for four cross-cutting issues were presented in the CPS results framework (see Table 1). Overall, these suggest that gender equity mainstreaming was the highest priority at the time, with environmentally sustainable growth and PSD the next most important priorities. No resources were allocated for RCI. Nonetheless, there was recognition at the time that Fiji would be supported by regional grants through other PARD operations.
Table 1: Indicative CPS Allocations (% of total budget) for Cross-Cutting Issues Sector ESG GEM PSD RCI Transport 30% 50% 30% 0% Water and other urban infrastructure and services 50% 65% 30% 0% Energy 33% 30% 30% 0% Public Sector Management 33% 30% 30% 0% CPS = country partnership strategy, ESG = environmentally sustainable growth, GEM = gender equity mainstreaming, PSD = private sector development, RCI = regional cooperation and integration. Source: ADB. 2014. Country Partnership Strategy Results Framework. Manila.
20. The proposed CPS portfolio highlighted ADB comparative advantages. Portfolio support was directed mainly at sector investments in transport, WUS, PSM, and energy, but support for disaster rehabilitation and mitigation was also noted. The CPS stated that ADB would also offer policy analysis
33 ADB. 2008. Strategy 2020. Manila. 34 ADB. 2014. Country Cost-Sharing Arrangements and Eligible Expenditure Financing Parameters. Manila. 6 Fiji: Validation of the Country Partnership Strategy Final Review, 2014–2018
and advice and respond to government priorities. The CPS highlighted the potential of ADB’s comparative advantage in the capacity to bring together financing, TA, and implementation capability. Overall, the program aligned with those of other strategic partners, such as the World Bank, Australia, and the European Union, providing additional leveraging of funds to support larger investments. These included cofinancing from the World Bank, the Green Climate Fund, and the European Investment Bank for larger investments such as the Transport Infrastructure Investment Sector Project, Urban Water Supply and Wastewater Management Investment Program multitranche financing facility (MFF), and emergency assistance loan for cyclone Winston.
CHAPTER 2 Portfolio Overview
21. The CPS portfolio aligned with the planned program of support. The program covered a portfolio of 18 TA, grants, and lending instruments (Table 2). Of these, seven loans and grants and four TA projects were completed over the CPS period. Seven projects were ongoing at the time of the validation, including two in PSM, two in WUS, and one each in transport, information and communications technology, and energy (Appendix 1).
Table 2: Project Portfolio Approved Prior to and During the CPS Number of Projects Approved Amount ($ million) Approved before the CPS period and completed during the CPS 8 72 period Approved during the CPS period 10 212 TOTAL 18 284 CPS = country partnership strategy. Source: ADB. 2014. Country Partnership Strategy Results Framework. Manila.
22. An initial sum of $283.94 million in financing was planned for the implementation of the CPS, but only $142.54 million was disbursed during the CPS period. Overall, the portfolio of projects included an MFF for $39.5 million, a policy-based loan for $15 million, three sector projects for $145 million, six stand-alone project loans or grants amounting to $79.7 million, and seven stand-alone TA projects for $4.8 million. A total of $76.8 million was allocated to the 11 projects which were completed within the CPS period, with most being spent on emergency projects ($70.6 million). A total of $66 million was spent on four projects that are expected to be completed between 2018 and 2019. The overall low disbursement is mainly due to some major projects being approved in 2018 or project readiness delays have resulted in disbursements which have only just started, such as the sector development program loan for the transport sector and the MFF for the water and sanitation sector. The sector allocation of the portfolio is shown in Figure 1 and Appendix 2. The full portfolio is shown in Table 3.
Figure 1: Fiji Country Partnership Strategy, 2014–2018 Portfolio by Sector and Amount Approved ($ million) ENE 1.0 ANR ICT 17.5 WUS 0.2 PSM 66.4 70.25
TRA 128.5
ANR = agriculture and natural resources, ENE = energy, ICT = information and communication technology, PSM = public sector management, TRA = transport, WUS = water and other urban infrastructure and services. Source: ADB. 2014. Country Partnership Strategy, Fiji, 2014–2018. Manila.
8 Fiji: Validation of the Country Partnership Strategy Final Review, 2014–2018
Table 3: Portfolio Approved Prior to and During the Country Partnership Strategy
Total Total ADB Amount Modality/ Approval Financing Disbursed Projects Project Name TA Type Date Closing Date ($ million) ($ million) Sector TA9427 Supporting Public Financial PATA/KSTA 24-Nov-2017 31-Jan-2020 0.75 0.00 PSM Management Reform L3667 Sustained Private Sector-Led Program 05-Jun-2018 31-Aug-2018 15.00 15.00 PSM Growth Reform Program PBL (Subprogram 1) TA9516 Support for Fiji’s Ministry of KSTA 26-Apr-2018 0.23 - ICT Civil Service L3512 Urban Water Supply and MFF: Project 20-Dec-2016 31-Jan-2026 39.46 - WUS Wastewater Management Investment Program, Tranche 1 L3403 Emergency Assistance for SPL 30-Jun-2016 28-Mar-2018 50.00 50.00 PSM Recovery from Tropical Assistance Cyclone Winston L6004 Project Design Advance Urban Project 09-Dec-2015 12-Jan-2018 2.65 1.52 WUS Water Supply and Wastewater Management Project TA8971 Support for Energy Sector CDTA 29-Sep-2015 31-Mar-2019 1.00 0.42 ENE Regulatory Capacity and Electrification Investment Planning L3210 Transport Infrastructure Project 05-Dec-2014 31-Dec-2020 100.00 3.61 TRA Investment Sector Project TA8777 Strengthening Transport CDTA 05-Dec-2014 14-Sep-2018 0.70 0.53 Coordination Capacity TA9063 Ports Development Master PATA 21-Dec-2015 30-Jun-2017 0.20 0.15 TRA Plan in Fiji TA8059 Implementing Reforms of CDTA 16-Mar-2012 28-Jan-2014 0.50 0.46 PSM State-Owned Enterprises G0286 Fiji Flood Rehabilitation Project SPL 16-Apr-2012 28-Jul-2014 1.00 1.00 PSM G0283 Flood Emergency Response SPL 15-Feb-2012 01-Oct-2015 1.00 1.00 PSM Project L2514 Third Road Upgrading (Sector) Project 23-Mar-2009 19-May-2014 26.80 26.04 TRA Project (supplementary) TA8514 Transport Sector Planning and PATA 25-Nov-2013 08-Mar-2017 0.80 0.78 TRA Management L2603 Suva-Nausori Water Supply Project 15-Dec-2009 14-Apr-2015 23.00 22.26 WUS and Sewerage Project (Supplementary) L2541 Emergency Flood Recovery Sector 27-Aug-2009 17-Jul-2015 17.56 17.03 ANR (Sector) Project TA8526 Urban Development Planning CDTA 31-Dec-2013 30-Mar-2017 1.30 1.22 WUS and Institutional Capacity Building G0466 Fiji Cyclone Emergency SP Grant 24-Feb-2016 18-Jan-2017 2.00 2.00 PSM Response Project ADB = Asian Development Bank, ANR = agriculture and natural resources, CDTA = capacity development technical assistance, ENE = energy, G = grant, ICT = information and communications technology, KSTA = knowledge and support technical assistance, L = loan, MFF = multitranche financing facility, PATA = policy and advisory technical assistance, PBL = policy-based lending, PSM = public sector management, SP = special program, SPL = special program loan, TA = technical assistance, TRA = transport, WUS = water and other urban infrastructure and services. Source: Asian Development Bank Independent Evaluation Department.
Portfolio Overview 9
23. ADB’s portfolio in Fiji in 2006–2014, the period of disengagement, consisted of ongoing investment loans and grants and three TA projects, while the CPS, 2014–2018 commenced with a portfolio that included an MFF and sector loan shortly after reengagement, stretching government capacity. A policy-based loan followed, a modality new to Fiji (Linked Document B).
24. In addition to the CPS portfolio, four regional TA projects had activities in Fiji. The TA projects were the Pacific Private Sector Development Initiative Phase III (June 2013–May 2019), the Pacific Economic Management Project Phase II (December 2013–March 2019), the Establishment of the Pacific Region Infrastructure Facility Coordination Office (March 2013–October 2019), and the Strengthening Climate and Disaster Resilience of Investments in the Pacific (September 2015–December 2020). Respectively, these projects focused on improvements to PSD, macroeconomic management, infrastructure, and climate change. Overall, the regional TA supported development initiatives that complemented CPS activities, particularly in relation to SOE reform. In addition to the TA projects with a direct focus on Fiji, ADB’s Pacific Subregional Office (SPSO) in Suva noted that Fiji also benefitted from ADB assistance through other regional TA projects. However, TA projects were not included in the CPS and, therefore, not reviewed as part of the CPSFR validation.
25. The Pacific Economic Management Project encouraged developing member countries (DMCs) to adopt innovative approaches to assist with economic management and strengthening capacity. The project commenced in 2013 and was allocated $3.0 million.35 Five TA projects are expected to be completed as part of the regional TA by 2019. Key activities included adopting a set of economic indicators, preparing economic review assessments, and high-level inputs to economic policy formulation generated via periodic in-country and regional dialogues.36 Economic analyses were conducted for 10 DMCs, including Fiji. The regional TA also supported the development of the first new law since the 2014 elections, which would allow the Reserve Bank of Fiji regulatory oversight of the Fiji National Provident Fund.37
26. The Pacific Region Infrastructure Facility Coordination Office project responded to the need for a long-term approach to infrastructure capacity development in the Pacific. This project was approved in 2013 and is forecast to end in 2019. The regional TA consists of four TA projects and some $15.2 million in funding.38 In March 2018, the Pacific Region Infrastructure Facility was reviewed as on track to fulfill its commitment to support the establishment of a national asset management framework in Fiji. The project was also developing a third Pacific Energy Investors Forum that would include Fiji as one of the key countries to be visited. Fiji was also receiving advisory services on infrastructure policy from the facility, including advice regarding planning for project implementation.39
27. The Pacific Private Sector Development Initiative aimed to generate sustained economic growth in the Pacific. The Pacific Private Sector Development Initiative conducted an in-depth analysis of the Pacific business environment, identifying business constraints and opportunities, as well as conducting country-specific private sector assessments. This regional TA is currently active (2013–2019) with approved funding of $38.9 million.40 It is managed by PARD and supports work in Fiji, such as assisting the Reserve Bank in capital market development and the commercial transformation of the Fiji Development Bank.41
35 ADB. 2018. Technical Assistance for Pacific Economic Management (Phase 2). Manila. 36 ADB. 2009. Technical Assistance for Pacific Economic Management. Manila. 37 ADB. 2014. Technical Assistance for Pacific Economic Management–Response to the Global Crisis (Subproject 1). Manila; and ADB. 2014. Technical Assistance for Pacific Economic Management–Enhanced Economic Management (Subproject 2). Manila. 38 ADB. 2013. Technical Assistance for Establishment of the Pacific Region Infrastructure Facility Coordination Office. Manila. 39 ADB. 2018. Pacific Economic Monitor (July 2018). Manila. 40 ADB. 2015. Major Change in Technical Assistance: Pacific Private Sector Development Initiative, Phase III. Manila. 41 ADB. 2018. Technical Assistance for Pacific Private Sector Development Initiative, Phase III. Manila; and IED. 2018. Pacific Private Sector Development Initiative. Manila: ADB.
10 Fiji: Validation of Country Partnership Strategy Final Review, 2014–2018
28. Strengthening Climate and Disaster Resilience of Investments in the Pacific addressed climate change actions. This TA was a response to DMC requests for ADB support in climate risk management and accessing climate financing.42 This project has been allocated $3.25 million in funding and is overseen by PARD. The project provided logistical support for the Secretariat of the United Nations Framework Convention on Climate Change 23rd session of the Conference of the Parties ministerial meeting in Fiji.43
42 ADB. 2015. Strengthening Climate and Disaster Resilience of Investments in the Pacific. Report to the Board of Directors. Manila. 43 ADB (Pacific Department). 2018. Request for approval of increase in TA amount, extension of TA completion date, and minor change in scope on Technical Assistance for Strengthening Climate and Disaster Resilience of Investments in the Pacific. Memorandum. 19 June.
CHAPTER 3 Validation of the Country Partnership Strategy Final Review
29. This chapter validates the assessments of the CPSFR in terms of the relevance, efficiency, effectiveness, sustainability, and development impacts of the program supported in Fiji. It also provides three additional assessments: (i) the overall performance of the CPS and ADB’s operations, (ii) ADB and borrower performance, and (iii) the quality of the final review.
A. Relevance
30. The assessment of relevance addresses the extent to which the design of the CPS aligned with the priorities of the Government of Fiji and ADB’s strategic directions. The CPSFR rated the CPS as highly relevant. The basis for this was the degree of alignment with the country development context and national priorities, as well as with ADB’s mandate and strategic priorities. The CPSFR noted that the CPS was highly successful in positioning ADB as the lead donor at reengagement. The Ministry of Economy confirmed that ADB was the first point of call for assistance. The final review stated that the CPS aligned with Fiji’s national development plans, as well as with ADB’s corporate and regional strategies. The projects which comprised the operations in Fiji were deemed relevant and well-designed in that they were informed by analytical and diagnostic studies. Furthermore, the CPSFR rated several major projects in the transport, ports, water, and PSM sectors as highly relevant. The subsequent paragraphs outline the validation assessment. The validation considers the strategic alignment for each of the three stated CPS objectives and assesses the CPS indicative allocations to cross-cutting issues.
31. The CPS strongly aligned with two of the three core goals of ADB’s Strategy 2020 (i.e., inclusive economic growth and environmentally sustainable growth) but was less clear on alignment with the goal of regional integration.44 A clear link can be seen between the goals of Strategy 2020, Fiji’s national priorities, and those of the CPS. A focus on inclusive, sustainable growth is present in all key documents, illustrating the appropriateness of the CPS objectives. The CPS objectives were developed in line with ADB’s Pacific Approach, 2010–2014 and the Pacific Approach, 2016–2020. The core goals of the 2010– 2014 Pacific Approach were to achieve “inclusive and environmentally sustainable growth, good governance, and regional cooperation and integration”.45 There is a strong strategic link for environmentally sustainable and inclusive growth. The regional integration aspects of the CPS are not strongly evident, and there was no intended resource allocation to regional cooperation and integration.
32. ADB was a lead development partner in reengagement, which increased the relevance of the CPS, but with quick response lending as the main thrust rather than longer-term strategic directions. According to the CPSFR, ADB was the first multilateral development bank to reengage with Fiji following the period of political upheaval. However, the CPS was not developed until after ADB had already commenced reengagement with Fiji. In 2009, ADB approved a loan to provide emergency flood recovery assistance to Fiji. Its project completion report specifically discussed how the absence of a CPS created complexities in reengaging with the island nation. Given continued deep presence in the transport sector,
44 ADB. 2008. Strategy 2020. The Long-Term Strategic Framework of the Asian Development Bank 2008–2020. Manila. 45 Footnote 1. pp.3.
12 Fiji: Validation of Country Partnership Strategy Final Review, 2014–2018
ADB was positioned to progress quickly with proposed new investments. With the signal of new elections on 17 September 2014, the CPS was placed on a fast-track process in its design and formulation, with approval in November 2014, and subsequent quick approval of the Transport Infrastructure Investment Sector Project on 5 December 2014. Therefore, the CPS was more reactive to the need to fast track lending than to being a well-considered analytical strategy.
33. Socioeconomic development is one of Fiji’s long-term development goals. It is mentioned in the 5-Year & 20-Year National Development Plan 2017 and in the Roadmap to Democracy, 2010–2014.46 In the National Development Plan, socioeconomic development encompasses a wide range of goals, such as improved sanitation and access to clean water, gender equality, reduced government debt, and increased GDP per person. The second objective of the CPS—make growth more inclusive—aligns with the socioeconomic development goals outlined in Fiji’s national policies and plans.
34. ADB positioned itself as a project developer. It helped the government mobilize funding for investments and leveraged significant cofinancing during the CPS period.47 The government had commenced introducing structural reforms to attract greater private investment across the economy and normalize its expansionary fiscal and monetary stance while maintaining growth and service delivery. The PSM project and TA projects in the portfolio supported the government’s strategy, with ADB efforts leading to funds being leveraged, particularly from the World Bank and the Government of Australia. The four regional TA projects allowed ADB to coordinate with other development partners, such as the Government of Australia, New Zealand, the World Bank, the International Finance Corporation, the European Commission, the European Investment Bank, and the Green Climate Fund.
35. The first CPS objective of raising Fiji’s growth potential through PSD was relevant but was not fully reflected in project designs. At the national level, the Fiji 5-Year and 20-Year National Development Plan envisages “transformative strategic thrusts,” nurturing economic growth in emerging sectors, encouraging human capital development, and embracing new technologies and connectivity.48 For example, improving transport is one of the key areas highlighted by the government. Transport improvements can translate into economic growth by creating access to markets, improving the quality of roads, and cutting down travel times, as well as reducing volatility by providing safer roads. The CPS support to the water, energy, and SOE divestment was also relevant in this regard. While transport infrastructure can stimulate growth, there is limited evidence that economic growth was a major consideration in the selection of roads or in the packaging of investments to ensure that economic growth was optimized. For instance, the projects do not appear to have targeted road upgrading to improve farmers’ incomes via increased market access with microfinance and skills development through ADB or other development partners.
36. As one of the long-term development goals in Fiji, inclusive economic development was strongly supported through the second objective of the CPS but is less evident across the portfolio. The second objective of the CPS aligned with the socioeconomic development goals outlined in Fiji’s 5-Year and 20- Year National Development Plan, 2017; and the Roadmap to Democracy, 2010–2014. Government priorities included improved sanitation and access to clean water, gender equality, and increased GDP per person. The CPS aligned with ADB Strategy 2020’s focus on inclusive growth. The higher indicative allocation to gender equity mainstreaming (Table 1), compared to other cross-cutting issues, illustrates the level of intent towards benefiting women. ADB has been responsive and flexible to the country’s general population needs. Program designs did not explicitly consider inclusion, instead presuming that any improvement in road access and water improvements would equally benefit men and women. The programming did not demonstrate any strategies to align with either the findings of the gender or the poverty analyses assessments at the time of the CPS design, which identified that poverty in Fiji is most
46 Footnote 13. 47 Footnote 1. 48 Footnote 13, pp. 2.
Validation of the Country Partnership Strategy Final Review 13
prevalent in informal settlements that lack access to basic services such as water.49 Active mechanisms to contribute to poverty reduction targets were not specifically identified in the project documentation and ADB reports.
37. A priority for Fiji was to reduce volatility and increase resilience, the CPS approach in the third objective was less clear. The government has outlined the nation’s commitment to promoting resilience through, among other ways, its targets to reduce debt and through “stewardship of climate change issues at the local, regional, and global level”.50 ADB’s support for SOE divestment aimed to support the government’s fiscal resilience and was a relevant approach. However, ADB was not visible in dialogue with the agencies responsible for disaster risk management or climate responses. ADB’s contribution to target coastal roads and climate proofing was introduced in specific infrastructure designs and were included as design elements of subprojects, not linked to strategic, national resilience building initiatives. There were positive examples where projects considered and adapted to climate resilience concerns. For example, the Suva Nausori Water Supply and Sewerage Project required a technical adjustment in order to address the potential issue of saltwater intrusion to the water intake. As a result, the location of the intake was moved upstream to account for potential climate change effects. For a country particularly prone to cyclones and flooding, a more systematic assessment of climate and disaster risks and more specific actions to reduce such risks would have been relevant.
38. ADB’s cross-cutting issues. The environmentally sustainable growth dimension of the strategy was expressed most strongly through the climate proofing of infrastructure investments in transport and WUS. Promotion of gender equity mainstreaming was incorporated into transport and water sector projects, mainly through the inclusion of safety and pedestrian enhancement measures in transport investments, temporary employment provision in unskilled civil works, gender awareness training for implementation partners, and targets for participation in project institutions. Public sector development was addressed through policy reform, with a focus on supporting SOE divestments and reducing barriers for private sector business operations, to encourage economic growth. The CPS did not allocate resources in support of RCI initiatives (Table 1). ADB’s PARD-implemented regional TA for RCI initiatives gave support in strengthening overall capacity for economic management, infrastructure policy and planning, climate risk management, and the conduct of assessments to support PSD. The benefits to Fiji from this assistance are described in Chapter one.
39. Relevance during implementation. Notwithstanding the design gaps noted above, the CPS implementation remained relevant. Country operations business plans (COBPs) are available as a means of monitoring progress towards the CPS objectives. COBP, 2015–2017 reviewed alignment of operations with the CPS and the shared priorities of ADB and the government. COBP, 2015–2017 reconfirmed the CPS strategies and identified roads, water and sanitation, government reform, and improving access to electricity as priority projects.51 In COBP, 2018–2020 the funding shifted to respond to tropical cyclone Winston while still supporting the transport sector, the development of water supplies, and wastewater management projects. The COBPs noted that there had been some delays to the start of projects funded by ADB. It also pointed out that the second stage of a major water supply and wastewater management program was likely to start in 2018 instead of 2019 as initially planned.52
40. Validation of CPSFR—assessment of relevance. A comparison between the findings of the CPSFR and this validation report finds that the Fiji CPS, 2014–2018 was relevant. The CPS positioned ADB well as Fiji’s preferred development partner, and the choice of investments was closely aligned with government and ADB priorities. The validation concurs with the final review that ADB was a key development partner in the period following reengagement.
49 Footnote 1. 50 Footnote 13, pp 6. 51 ADB. 2014. Country Operations Business Plan: Fiji, 2015–2017. Manila. 52 ADB. 2017. Country Operations Business Plan Fiji, 2018–2020. Manila. 14 Fiji: Validation of Country Partnership Strategy Final Review, 2014–2018
41. ADB’s role in assisting the government with project design and leverage of funds was important. The wide range of available lending modalities (e.g., technical assistance, project sector loans, MFF, and others) was relevant for Fiji in that it gave the ability to successfully package designs and leverage resources in a manner that best suited particular projects. Therefore, ADB’s strategic intent was highly relevant, and the approach to acting as a leader during reengagement was innovative.
42. Several strategic approaches outlined in the CPS were not fully reflected in the programming itself, which has affected performance, such as the limited extent to which the programming aligned effort and resources to the CPS objectives and indicative allocations, particularly, inclusive economic growth, resilience, and gender equity mainstreaming. These factors affected the relevance of the CPS programming.
B. Effectiveness
43. CPSFR—assessment of effectiveness. The assessment of effectiveness examines the extent to which development objectives were achieved. Each project includes a statement of expected achievements. The CPSFR provided a summary of project level achievements and rated the overall program effective. In addition to the summaries, the validation team considered the extent to which implementation took into account ADB operational guidelines in terms of safeguard compliance and development effectiveness.
44. Transport operations continued from the pre-CPS period. The CPS included six transport-related initiatives (Table 4). The Third Road Upgrading (Sector) Project53 was a continuation of an earlier project that had been in operation before the disengagement. The loan was a supplement that allowed continuation of ongoing road works in line with the government’s road network development priorities. The supplementary loan financed largely circumferential roads on the main island of Viti Levu, but some works were also carried out in Vanua Levu and Taveuni. During the disengagement period (2006–2014), ADB confined its support to emergency assistance and TA. The emergency support related mostly to road repairs in areas that had been flooded. In response to the CPS objective towards improved resilience, a “build back better” approach54 to strengthen road capability to withstand flood events was embedded into project implementation. The investment in stronger bridges to maintain the connectivity of major arterial routes during floods was of particular importance.
Table 4: Transport Sector Initiatives Project Starting date Closing date Funding ($) Third Road Upgrading (Sector) Project (supplementary 27-Aug-2009 17-Jul-2015 17,560,000 loan) Transport Sector Planning and Management 25-Nov-2013 08-Mar-2017 800,000 Transport Infrastructure Investment Sector Project 05-Dec-2014 31-Dec-2020 100,000,000 (formerly Bridge Replacement Project) Strengthening Transport Coordination Capacity 05-Dec-2014 14-Sep-2018 700,000 Ports Development Master Plan in Fiji 21-Dec-2015 30-Jun-2017 200,000 Emergency Flood Recovery (Sector) Project 27-Aug-2009 17-Jul-2015 17,560,000 Source: Asian Development Bank Independent Evaluation Department.
45. A focus on road investment as part of reengagement. On reengagement, one of the first initiatives was to develop a new major road infrastructure support program as a sector investment loan. This modality moved away from the previous stand-alone project investment approach and signalled a
53 ADB. 2009. Report and Recommendation of the President to the Board of Directors: Proposed Supplementary Loan to the Republic of the Fiji Islands for the Third Road Upgrading (Sector) Project. Manila. 54 “Build back better” refers to the use of the recovery, rehabilitation and reconstruction phases after a disaster to increase the resilience of nations and communities through integrating disaster risk reduction measures into the restoration of physical infrastructure and societal systems, and into the revitalization of livelihoods, economies and the environment. Source: United Nation International Strategy for Disaster Reduction, February 2017. Validation of the Country Partnership Strategy Final Review 15
more complex lending approach for the country. The government was appreciative of the availability of different lending modalities but was not always prepared for the detailed compliance requirements.
46. Support for road rehabilitation after disasters. Five out of 18 projects were developed in response to climate-related disasters. Support from ADB and the World Bank allowed for post-recovery projects, without significantly reallocating resources from other development programs. ADB provided an immediate cyclone emergency grant of $2 million from the Asia Pacific Disaster Response Fund, to meet urgent needs.55 The emergency assistance loan of $50 million was approved in the aftermath of cyclone Winston for recovery efforts. In general, the grant funds were used effectively as the works were relatively straightforward and designed to restore roads that had been damaged. The CPSFR, however, assessed the Emergency Flood Recovery Project as less than successful. Although expected outputs were exceeded in some areas of the project, other areas were unaddressed, calling into question the effectiveness of subproject selection processes, and threatening the overall effectiveness of the project in building resilience to floods. This validation concurs with this.
47. The transport projects displayed mixed degrees of effectiveness. The Third Road Upgrading Sector Project was implemented satisfactorily. There were, however, issues with international contractors—a major subproject that aimed to improve 21 kilometers of Lodoni Road and 29 kilometers of Kings Road had to be terminated due to poor performance of the contractor.56 The contractor faced several challenges, including poor on-site management, insufficient equipment, lack of skilled personnel, and language barriers.57 The contract for Kings and Lodoni roads was eventually re-bid, and the road was completed. However, the Fiji Roads Authority (FRA) and ADB’s SPSO noted during the validation mission that the condition of the road was not of the same standard of construction quality as other subprojects in the project. Nevertheless, overall, the project outputs were largely completed, and the project can be assessed effective.
48. The Strengthening Transport Coordination Capacity Project was a strategic TA project in response to a request from the Government of Fiji to update the 20-year Fiji National Transport Sector Plan (1993– 2023).58 This TA aimed to assist the government to establish the policies and priorities for the national road network and rural maritime transport infrastructure for 2017–2036. In particular, the government requested support for road safety, bus fleet upgrading, design and construction standards, and maritime experts, which were accommodated within the TA support. The TA also produced an asset management plan for FRA and an investment program for the Transport Infrastructure Investment Sector Project for a 10-year planning horizon. The government reported that the level of technical support was highly valued.
49. The Transport Infrastructure Investment Sector Project experienced significant delays and, as a result, at the time of the CPSFR in 2018, only 3% of the loan had been disbursed in the preceding 3 years. The midterm review mission to Fiji in 2017 confirmed the low level of performance but noted steps by FRA to increase staffing and progress procurement. 59 The midterm review noted that performance could be expected to improve considerably if the FRA committed to and started to implement a rigorous action plan. In June 2018, disbursements had increased marginally, with cumulative disbursements at 1.9% and cumulative contract awards at 10.7%.60 During the validation mission, FRA confirmed the issues with
55 ADB (Pacific Department). 2016. Emergency Assistance for Relief and Recovery from Cyclone Winston. Memorandum. 1 June (internal). 56 ADB (Pacific Department). 2015. Midterm Review Mission to Fiji: Third Road Upgrading (Sector) Project. Back-to-office report. 15 June (internal). 57 ADB. 2015. Completion Report: Third Road Upgrading (Sector) Project in Fiji. Manila. 58 ADB. 2018. Project Data Sheet: Transport Infrastructure Investment Sector Project (formerly Bridge Replacement Project). Manila. 59 ADB (Pacific Department). 2017. Midterm Review Mission to Fiji: Transport Infrastructure Investment (Sector) Project. Back-to- office-report. 16 November (internal). 60 ADB (Pacific Department). 2018. Review Mission to Fiji: Transport Infrastructure Investment (Sector) Project. Back-to-office- report. 4 June (internal).
16 Fiji: Validation of Country Partnership Strategy Final Review, 2014–2018
delays and internal structural issues but stated a commitment to implementing the loan, albeit with a potential request for a loan extension to allow for absorption of remaining loan funds.
50. Ports development. The Ports Development Master Plan TA produced outputs as intended at the time of design, including providing decision making bodies with comprehensive data regarding the state of the ports system.61 However, the Ministry of Public Enterprises and the Fiji Ports Corporation Limited deemed the plan as falling short in some of its intended goals. They indicated that while the outputs were generated, the TA mainly repackaged and synthesized already available data rather than adding anything new to the plans for port expansion. In addition, the TA was prepared during a period of substantial institutional change in the sector, affecting the uptake of recommendations. Ports were divested from government ownership into partial private sector ownership, which resulted in confusion regarding the delineation of responsibilities for implementation. Discussions are ongoing about the potential for further action in this sector, given the high priority placed on economic development and the safety concerns around the current port operations due to overcrowding and the presence of wrecks in the harbor. The government has expressed interest in having a longer-term plan developed.
51. Transport sector projects affected by staffing and capacity constraints. Projects within the transport sector faced considerable challenges relating to staffing and capacity. These challenges negatively impacted the implementation of projects and caused considerable cost overruns and delays. Staffing and contractual matters contributed towards the projects not being as effective as they could have been. However, projects in the sector of WUS demonstrated substantial achievement of outputs and outcomes.
52. Water supply support has been effective. Infrastructure upgrades as part of the Suva–Nausori Water Supply and Sewerage Project have received ongoing attention in the CPS, building on previous investments (Table 5). The water supply in Suva was not keeping pace with the extent of urban development as the population grew. Of particular concern was informal settlement areas on the outskirts of the city that did not have metered water supply and the continuity of water supply to the growing industrial areas in the outer areas of the city. The consistency of water supply and the management of leaks were also given attention.
Table 5: Water and Other Urban Infrastructure and Services Project Starting date Closing date Funding ($) Suva–Nausori Water Supply and Sewerage Project 15-Dec-2009 14-Apr-2015 23,000,000 (Supplementary Loan) Urban Development Planning and Institutional Capacity 31-Dec-2013 30-Mar-2017 1,296,000 Building Urban Water Supply and Wastewater Management 12-Jan-2018 31-Jan-2026 39,459,000 Investment Program, Tranche 1 Project Design Advance Urban Water Supply and 09-Dec-2015 12-Jan-2018 2,650,000 Wastewater Management Project Source: Asian Development Bank.
53. The project completion report assessed the investments in improved piped water supply to the Suva–Nausori corridor as effective.62 The decline in incidences of water-borne diseases such as diarrhea and typhoid was attributed in large part to the effective implementation of the project. The Water Authority of Fiji (WAF) is making clear efforts to ensure that environmental concerns are actively monitored and mitigated. The Suva–Nausori project has established monitoring mechanisms, including a code of environmental practice (being assembled as of June 2014), a nitrogen and phosphorous study to monitor water quality in Suva Bay, a leak detection program, and a liquid trade waste program.63
61 ADB. 2017. Completion Report: Ports Development Master Plan in Fiji. Manila. 62 ADB. 2016. Completion Report: Suva-Nausori Water Supply and Sewerage Project. Manila. 63 ADB. 2014. Monitoring Mechanism: Suva-Nausori Water Supply and Sewerage Project. Manila. Validation of the Country Partnership Strategy Final Review 17
54. The completion report for the Urban Development Planning and Institutional Capacity Building TA considered the project effective in supporting the improvement of urban growth and climate change management structures, including the implementation of geographical information system software and setting development standards.64 The environmental and social safeguards measures involved the preparation of an environmental assessment, definition of the extent of land acquisition and any involuntary resettlement impacts, as well as preparation of an environmental management plan for construction.65 A comprehensive review of existing institutional, policy, and legislative urban management frameworks was carried out, along with a review of the greater Suva area Water and Wastewater Management Plan. As a result, high-priority investments were identified leading to the approval of Green Climate funding, approval of the project design advance, and the MFF for Urban Water Supply and Wastewater Management Investment Program. The validation concurs with the TA completion report.
55. The Urban Water Supply and Wastewater Management Investment Program builds upon the work of the Suva–Nausori Water Supply and Sewerage Project and the Urban Development Planning and Institutional Capacity Building TA. The Urban Water Supply project focuses on improving access to sustainable water supplies as part of encouraging sustainable urban growth. It has acknowledged the sudden population growth experienced during 2009–2015 and has taken it into consideration through the project design.66 The project was established as an MFF, which would progressively help the government to expand and improve water supply and sanitation systems in the greater Suva area, which is home to approximately one-third of the population and is growing steadily.67 The efforts made through the project design advance facility assisted in the leveraging of financing through the Green Climate Fund to upgrade wastewater treatment.68 As this project is ongoing and commenced in January 2018, it is too early to assess its effectiveness.
56. Energy sector. Fiji is committed to increasing its renewable energy sources and expanding access to energy. Prior to the CPS, ADB had limited experience working within Fiji’s energy sector. Among the projects that ADB financed, the Support for Energy Sector Regulatory Capacity and Electrification Investment Planning TA project evaluated the capacity of the Fiji Competition and Consumer Commission to assume electricity regulatory functions independent of the state-owned utility Energy Fiji Limited (EFL).69 The second component of this project was to assist the Department of Energy to develop an electrification master plan. This was achieved through two key outputs: (i) capacity development at selected regulatory agencies, and (ii) enhanced sector planning capacity at relevant government departments. The TA was expected to lead to an investment loan but due to the government’s borrowing policies and the private sector nature of the energy sector at this time (2018), it has not yet been possible to engage ADB resources in this area.
57. Public sector management and emergency response. Five out of 18 projects respond to climate- related disasters, mainly through government budget support and road upgrading projects. The projects include grant assistance under the Asia Pacific Disaster Response Fund and a special emergency assistance loan of $50 million in the aftermath of cyclone Winston. PSM also covered assistance to the divestment of SOEs, complemented by related TA. The Sustained Private Sector-Led Growth Reform Program commenced in June 2018. While actions under the first subprogram have been completed, progress for Subprogram 2 is ongoing and scheduled for completion in mid-2019. While it is too early to assess
64 ADB. 2017. Completion Report: Urban Development Planning and Institutional Capacity Building in Fiji. Manila. 65 Water Authority of Fiji. 2017. Suva Wastewater Collection System Upgrade Component CS03A. Progress Report No 6. Suva. 66 Footnote 62. 67 ADB. 2016. Report and Recommendation of the President to the Board of Directors: Proposed Multitranche Financing Facility to the Republic of Fiji for the Urban Water Supply and Wastewater Management Investment Program. Manila. 68 ADB. 2015. Project Design Advance: Republic of Fiji Urban Water Supply and Wastewater Management Project. Manila. 69 ADB. 2018. Project Data Sheet: Support for Energy Sector Regulatory Capacity and Electrification Investment Planning. Manila. 18 Fiji: Validation of Country Partnership Strategy Final Review, 2014–2018
achievements of the policy-based loan, demonstrated government commitment to ongoing reforms suggests the project is likely effective. The validation concurs with this.
Table 6: Public Sector Management Initiatives Project Starting Date Closing Date Funding ($) Supporting Public Financial Management Reform 5 Jan 2018 31 Jan 2020 750,000 Sustained Private Sector-Led Growth Reform Program 25 June 2018 31 Aug 2018 15,000,000
Emergency Assistance for Recovery from Tropical 4 Aug 2016 31 Jan 2018 50,000,000 Cyclone Winston Implementing Reforms of State-Owned Enterprises 2 Apr 2012 28 Jan 2014 464,000 Fiji Flood Rehabilitation Project 19 Apr 2012 28 July 2014 1,000,000 Flood Emergency Response Project 12 Mar 2012 1 Oct 2015 1,000,000 Fiji Cyclone Emergency Response Project 28 Feb 2016 18 Jan 2017 2,000,000 Sources: ADB eOps (for projects approved in 2018), Controller’s Department database as of 31 December 2017 and Procurement, Portfolio, and Financial Management Department Project and TA completion ratings database (for projects approved prior to 2018).
58. Public sector reform. The CPS included ambitious targets for stimulation of private sector investment, including generating growth and employment (footnote 1). These goals were to be achieved by improving the business environment, assisting with the divestment of public enterprises, and encouraging new and more productive investment through the development and implementation of private sector reforms.
59. State-owned enterprise development. ADB has provided a range of TA projects to support government divestment processes, mainly through regional TA, particularly the Private Sector Development Initiative (PSDI). The TA support to the ports and power sector have been instrumental in supporting technical aspects related to the divestment process, e.g., support of measures towards energy regulation. The Ministry of Economy notes that already divested SOEs are generating positive income flows for the government. From 2002 to 2014, the average return on equity from SOEs increased from 1% to 3.3%.70 Fiji has divested 59% of Fiji Ports Corporation Limited, 51% of Ports Terminal Limited and a management contract for the Suva and Lautoka ports, 51% of Fintel, 100% of Fiji Dairy, and 50% of the government’s remaining 34.6% stake in Amalgamated Telecom Holdings.71 However, in both the power and port sectors, the divestment process is still in the early stages, and there are still major hurdles about roles and responsibility for continued sector development investments. While the government has set revenue targets for SOE asset sales, it is proceeding cautiously to ensure that privatization of the larger infrastructure SOEs contributes to sector development and improvement of services. Recognizing that divestments to date have lacked a consistent and predictable process, the Ministry of Public Enterprises has committed to adopting a clear and transparent set of rules and procedures for SOE divestments.
60. The Sustained Private Sector-Led Growth Reform Program (policy-based loan) and the associated Supporting Public Financial Management Reform TA have encouraged positive action with all actions under Subprogram one being completed. The Sustained Private Sector-Led Growth Reform Program aimed to enhance public financial management and originally consisted of three subprograms. The government initially planned a smaller program in 2016. With the rollover of the global bond in 2015, limited financing needs resulted in a request to delay commencement of a larger program until 2018. This was beneficial in several ways, including providing more time for a substantive dialogue between government and multilateral partners. This policy-based loan saw significant reforms introduced including improving (i) fiscal management; (ii) policy, legal, and institutional framework for public–
70 ADB. 2016. Finding Balance 2016: Benchmarking of State-Owned Enterprises in Island Countries. Manila. 71 ADB. 2018. Report and Recommendation of the President to the Board of Directors: Sustained Private Sector-Led Growth Reform Program (Subprogram 1). Manila.
Validation of the Country Partnership Strategy Final Review 19
private partnerships and SOEs; and (iii) business and investment climate. The 2018–2019 budget reflects the government’s commitment to the reforms. Reforms have been enacted to encourage private investment in line with the World Bank’s Country Diagnostic Study and at the macroeconomic level the government has reaffirmed its commitment to reducing debt and appropriate fiscal management.72
61. Safeguards compliance. Projects undertaken in Fiji complied with their safeguard frameworks and plans of the loans. The completion reports of early projects suggest that each project complied with requirements, although detailed information was not available. Projects funded under the Asia Pacific Disaster Response Fund complied with triggering actions as set out in the fund’s implementation guidelines. Evidence suggests that the steps set out in the Business Process for Accessing the Asia Pacific Disaster Response Fund were complied with; however, it is not possible to confirm that all steps were completed from the available documentation. 73
62. An environmental safeguards closure report for the Suva–Nausori Water Supply and Sewerage Project indicated that the project complied with all safeguard requirements.74 The Transport Infrastructure Investment Sector Project submitted an environmental monitoring report for January–June 2016 to ADB but there is no documented response to the actions proposed. While the project recruited a social safeguards specialist, the quarterly progress report suggested that there was also a need to hire a gender and social development specialist to address issues not directly covered by safeguards, such as poverty, gender, and other cross-cutting issues.75 Documentation of the monitoring of policy and safeguards did not adequately reflect compliance activities undertaken. During the validation mission, the Ministry of Economy and FRA reported difficulties in following safeguards procedures, noting that while the government recognizes the importance of safeguard requirements, it perceived them as time- consuming and not always commensurate with the type of upgrading of investments being proposed. The Ministry noted the need for dedicated and trained staff to be able to comply with requirements. In the past there has been confusion and misunderstanding on requirements. Understanding is now improving as government staff are more familiar with safeguards requirements.
63. Validation of the CPSFR—assessment of effectiveness. The CPSFR assessed the CPS implementation effective. There were policy and procedure changes as a result of WUS projects. The water supply investments were designed to expand public water supply to less served areas of the capital Suva. Overall, the water and sanitation investments and the emergency loan have been instrumental in addressing service delivery issues that were affecting both industrial and household water supply. While there have also been challenges relating to staffing and capacity for some transport projects, road infrastructure has been instrumental in addressing access issues and contributed to an improved road network. Furthermore, the effectiveness of ADB’s role relates strongly to the expertise and the wide range of lending modalities available, which gave the bank the ability to successfully package designs and leverage resources with other development partners. However, the validation found little evidence to support an effectiveness rating post-reengagement. While operations prior to reengagement and ADB’s emergency operations are rated successful, it is too early to judge post-reengagement efforts. Moreover, challenges relating to staffing and capacity have negatively impacted project implementation post-reengagement. Consequently, this validation considers the program to have been borderline effective.
C. Efficiency
64. CPSFR—assessment of efficiency. The validation of the CPS efficiency considers the timeliness of project implementation, cost management, economic returns, and extent of benefits. The CPSFR rated
72 World Bank. 2017. Republic of Fiji Systematic Country Diagnostic. Washington, D.C. 73 ADB. 2015. Asia Pacific Disaster Response Fund: Implementation Guidelines. Manila. 74 ADB. 2013. Environment Safeguards Closure Report: Suva Nausori Water Supply and Sewerage Project in Fiji. Manila. 75 Fiji Roads Authority. 2016. Quarterly Progress Report Q3 (Jul-Sep 2016). Transport Infrastructure Investment Sector Project. Suva. 20 Fiji: Validation of Country Partnership Strategy Final Review, 2014–2018
the CPS less than efficient. The CPSFR based the rating largely on the delays in the transport sector projects. Overall, TA projects were assessed efficient.
65. Portfolio low level of disbursement. As noted in the portfolio overview in paragraph 24, an initial sum of $283.94 million in financing was planned for the implementation of the CPS, but only $142.54 million was disbursed within the CPS period (2014–2018). The low disbursement is due to several major projects that were approved in 2018, particularly the MFF for the Water and Sanitation Sector. However, there are major delays in the transport sector that have also led to a low disbursement rate during the CPS period.
66. Transport. Several factors impacted the efficiency of transport projects in the portfolio. All projects in the portfolio suffered from delays caused by cost-overruns, problems with recruitment and procurement, a lack of suitably skilled staff and technical support, and the inadequate disbursement of funding.
67. The Third Road Upgrading Sector Project experienced an increase in costs, which was not factored into the original design and thus, reduced rates of return on investment considerably.76 A supplementary loan had to be granted in order to complete the project. Two of the associated bids were declared mis- procurements, which further slowed the project. Over its course, the completion cost rose to $168.3 million, some $78.8 million more than the original cost estimate. Cost overruns were the result of higher than estimated costs for consultancy services and civil works. The CPSFR claims that despite these issues, the project was still able to deliver in excess of its expected output and was assessed successful.
68. The Emergency Flood Recovery Project experienced delays as a result of the underestimation of costs, which led to the cancellation of some project components, and challenges in recruiting consultants (including adequately qualified engineers) and procuring civil works. For example, the Rakiraki Bridge, initially estimated to cost $2.2 million, ended up costing approximately $6.7 million.77 However, this was partly due to the improvements in the design that considered climate proofing and safety.
69. The Transport Sector Planning and Management TA Project was also delayed. Five extensions were granted, resulting in an extension of 19 months. The extensions were granted because of issues relating to the accessibility of data on infrastructure upgrading and maintenance costs, the preparation of additional documentation, and the impact of cyclone Winston. The project concluded that an assessment of the data available in the sector should be undertaken before beginning any similar initiatives.78
70. By June 2018, the Transport Infrastructure Investment Sector Project had disbursed 3% of project financing after approximately 40 months of implementation. The project experienced major delays mainly related to procurement issues. The design incorporated a plan to appoint a prime management contractor to address the required design, supervision, and compliance requirements. It considered the lack of staff in FRA at the time of design and the need to employ experienced contractors.79 However, FRA was hesitant to engage international consultants to address the capacity deficit due to perceived high costs and previous experience of poor performance of management contractors. The projects suffered from the insufficient technical and management capacity and limited ability to fulfill critical design and management requirements.80 Only one of the transport projects appears to be on track as of October 2018, the Strengthening Transport Coordination Capacity Project. However, this project is still ongoing and therefore, cannot be assessed at this time.81 Some projects in the portfolio were impacted
76 ADB. 2015. Completion Report: Third Road Upgrading Sector Project in Fiji. Manila. 77 ADB. 2016. Completion Report: Emergency Flood Recovery (Sector) Project in Fiji. Manila. 78 ADB. 2017. Completion Report: Transport Sector Planning and Management in Fiji. Manila. 79 Footnote 75. 80 Footnote 75. 81 ADB. 2018. Project Data Sheet: Transport Infrastructure Investment Sector Project (formerly Bridge Replacement Project). Manila. Validation of the Country Partnership Strategy Final Review 21
by issues relating to a lack of government capacity to implement projects and procure contractors. Many of these issues stem from ADB operating in a period of reengagement and the government trying to adapt to changes in administration.
71. The Ports Development Master Plan experienced delays.82 The plan was delivered 5 months late, partially due to difficulties obtaining data and inclusion of additional tasks assessing the wrecks in the harbor.
72. Water and other urban infrastructure services. The CPSFR reported lower efficiency of water supply and infrastructure services. The Suva–Nausori Water Supply and Sewerage Project had cost overruns and delays, which contributed to a reduced economic internal rate of return, from 13.1% at appraisal to 10.1% at completion.83 The original loan approval date was delayed by 12 months, and the project also experienced delays in civil works and in implementing reforms, such as those recommended by the water tariff review. However, the project did exceed original targets related to connecting 13,000 households to water supply and expanding sewerage coverage.84
73. The Urban Development Planning and Institutional Capacity Building Project was also extended (a total of 33 person-months) in order to allow for processing following ADB’s reengagement with Fiji.85 The project did not establish a metropolitan urban management board, as set out in output 3, due to delays in establishing the institutional arrangements. Other projects, such as the Project Design Advance for Urban Water Supply Wastewater Management Program, completed all activities within the given timeframe and did not exceed resource allocations.
74. Energy. The Support for Energy Sector Regulatory Capacity and Electrification Investment Planning project was rated less than efficient because of the 1-year delay in completion.86 The project has been granted a second extension from original closure date of September 2017 to March 2019.87
75. Public sector management. The Implementing Reforms of SOEs Project was delivered within budget and on time, albeit with significant amendments. While most outputs were achieved, one of the core components of output 3—to establish a steering committee chaired by the permanent secretaries for public enterprises in order to promote more rapid reform—did not materialize.88 Both the Emergency Assistance Response to Tropical Cyclone Winston and the Fiji Cyclone Emergency Response Grants were disbursed in their entirety and as planned. The projects Supporting Public Financial Management Reform, Support for Fiji’s Ministry of Civil Service, and Sustained Private Sector-Led Growth Reform Program were approved in June 2018, and no progress reports were available at the time of the validation mission.89
76. Validation of the CPSFR—assessment of efficiency. This validation report assesses the program less than efficient due to the substantial delays experienced throughout the CPS and cost overruns of infrastructure projects (Appendix 3). All transport related projects in the portfolio suffered from delays and cost overruns which hampered efficiency. Water supply projects were mostly efficient but also experienced delays. PSM projects underwent considerable amendments and, while they were delivered on time and most outputs were achieved, one of the core components of the project—implementing reforms of SOEs (output 3)—was not achieved. The overall disbursement rates for the CPS program are low. However, it is recognized that these projects took place during a time of reengagement.
82 ADB. 2017. Technical Assistance Completion Report: Ports Development Master Plan in Fiji. Manila. 83 ADB. 2016. Technical Assistance Completion Report: Suva-Nausori Water Supply and Sewerage Project in Fiji. Manila. 84 IED. 2017. Validation Report: Suva–Nausori Water Supply and Sewerage Project in Fiji. Manila: ADB. 85 ADB. 2017. Completion Report: Urban Development Planning and Institutional Capacity Building in Fiji. Manila. 86 ADB (Pacific Department). 2017. Review Mission to Fiji: Support Regulatory Capacity and Electrification Investment Planning. Back-to-office report. 21 September (internal). 87 ADB. 2018. Project Data Sheet: Support for Energy Sector Regulatory Capacity and Electrification Investment Planning. Manila. 88 ADB. 2014. Technical Assistance to the Republic of Fiji for the Implementing Reforms of State-Owned Enterprises. Manila. 89 ADB. 2018. Report and Recommendations of the President to the Board of Directors: Proposed Programmatic Approach and Policy-Based Loan for Subprogram 1 to the Republic of Fiji for the Sustained Private Sector-led Growth Reform Program: Manila. 22 Fiji: Validation of Country Partnership Strategy Final Review, 2014–2018
Furthermore, solutions to overcome these challenges in most instances have been found and, despite the delays, positive results have been achieved.
D. Sustainability
77. The sustainability of the CPS benefits assesses the extent to which benefits are sustained and the extent to which institutional arrangements are in place to support ongoing maintenance and continuity of benefits. The CPSFR rated the program outputs and outcomes likely sustainable.
78. Transport. Substantial increases in FRA maintenance budgets suggest the results of the Emergency Flood Recovery (Sector) and the Transport Infrastructure Investment Sector projects are likely to be sustained. The government has allocated $563 million to the FRA for 2018–2019, an increase of $85.5 million from the previous financial year, as well as increased funding for the Ministry of Infrastructure and Transport.90 The FRA has allocated $10.5 million from its budget to support the implementation of the Transport Infrastructure Investment Sector Project.91 The maintenance budget for the Emergency Flood Recovery (Sector) Project doubled between 2011 and 2016, with some $80 million allocated for 2016.92 A road maintenance fund has not been established as recommended in the project completion report validation, to maintain budget flexibility, but actual allocations have demonstrated a commitment to resourcing maintenance needs.93 The Third Road Upgrading Project completion report indicated that the projected maintenance fund allocations are adequate for the project roads.94 In addition, enforcement of vehicle weight and axle load regulations affirms the commitment of the government to longer asset life spans.
79. The Transport Sector Planning and Management TA is likely to be sustainable, as the policies and plans that have been developed through the project have been endorsed by the government and are also well-aligned with national priorities in the transport sector.95 ADB supported the Fiji Nationally Determined Contribution in preparing an implementation roadmap and sustainable transport action plan. Aligning the project with national policy also increases the likelihood of sustainability. The Strengthening Transport Coordination Capacity Project saw the development of a road safety audit manual and provided training to FRA. Strengthening the capacity of the Ministry of Finance and the Ministry of Infrastructure and Transport is likely to be sustainable because of these resources and upgraded knowledge and staff skills.96
80. The Ports Development Master Plan in Fiji TA is less than likely sustainable as the government has not formally endorsed it, despite some of the assessments and recommendations being adopted by the Fiji Ports Corporation Limited.97 The master plan may serve as a useful reference for further dialogue between ADB and the Government of Fiji for potential lending support in the future. However, the feedback from both the Ministry of Public Enterprises and the Fiji Ports Corporation Limited was that the TA was instrumental only in minor changes that could have been handled independently and that the technical input was insufficient in relation to the extent of need. The validation team is aware that there are differences in perspectives between the government and ADB about the value of the master plan work and that institutional changes are the main barrier to follow-up of TA recommendations and the next stages of development. Overall, the final review and validation team agree on the less than sustainable rating.
90 PricewaterhouseCoopers. 2018. Fiji Budget Report 2018–2019. Suva. 91 Republic of Fiji. 2018. How the 2018–2019 Budget Allocation for Fiji Roads Authority Will Be Spent. Manila. 92 ADB. 2016. Completion Report: Emergency Flood Recovery (Sector) Project in Fiji. Manila. 93 ADB. 2017. Completion Report: Ports Development Master Plan in Fiji. Manila. 94 ADB. 2017. Completion Report: Third Road Upgrading (Sector) Project in Fiji. Manila. 95 ADB. 2017. Completion Report: Transport Sector Planning and Management in Fiji. Manila. 96 ADB (Pacific Department). 2018. Joint Review Mission to Fiji: Transport Infrastructure Investment (Sector) Project. Back-to-office report. 4 June. (internal). 97 Footnote 91. Validation of the Country Partnership Strategy Final Review 23
81. Water and other urban infrastructure and services. ADB’s engagement in the WUS sector is likely sustainable, reflecting the government’s commitment to finance water services and to improvements in sector management since 2010. Under the Suva–Nausori Water Supply and Sewerage Project, Fiji undertook significant institutional reforms, including transferring the responsibility for managing water and sewerage services from the Ministry of Works and Energy’s Water and Sewerage Department to the WAF. Although WAF still faces skills constraints, partial corporatization has resulted in a considerably improved organization compared to the pre-2010 institutional arrangements. WAF is establishing an asset management system and has a valuable institutional twinning arrangement with an Australian water utility. The supply of billing meters under the project has also helped improve collections, reduce non-revenue water losses, and improve WAF overall revenue, which contributes to the viability of WAF operations.
82. A financial analysis prepared for the Urban Water Supply and Wastewater Management Investment Program calculated that on current water tariffs, the project would have a negative financial rate of return. As a result, mainly because water tariffs do not fully cover costs, a previous validation of the Suva–Nausori Water Supply Project by IED rated the investment less than likely sustainable. However, the government has committed to meeting the costs of subsidized water supply to the population, and budgetary allocations to WAF are sufficient for adequate operations and maintenance. Furthermore, the government has agreed to loan covenants to continue such financing under the program. According to the government’s budget estimates, 2018–2019, the government has allocated $21.8 million to continue the financing of the Urban Water Supply and Wastewater Management Project.98 The government has also committed to increasing domestic financing for the Water Authority of Fiji and the Ministry of Waterways and Environment.99 Therefore, the project is rated by the CPSFR as likely sustainable. In the future, further moves toward cost recovery-based tariffs and revenue retention would promote commercial decision making and long-term sustainability. The project design noted low tariffs as a potential risk to sustainability. The government has agreed to consider tariff options in the medium term and in the short term continues to provide subsidies to customers to ensure a stable and consistent water supply. The validation agrees with the CPSFR assessment of likely sustainable.
83. Energy sector. The sustainability of the Support for Energy Sector Regulatory Capacity and Electrification Investment Planning TA is reliant on government activities and public or private sector investment in the sector. While the government’s legislative commitment to establishing an independent public utility regulator suggests the TA is likely to be sustainable, its long-term sustainability relies on continued capacity development for the regulatory function; further action on tariff reviews; greater clarity on roles; and responsibility for critical asset improvements for long-term, consistent, and sustainable energy sector outcomes.
84. Public sector management. All three public sector projects are likely to be sustainable due to demonstrated commitment by the government to the recommendations made by the Sustained Private Sector-Led Growth Program and the Supporting Public Financial Management TA. The government has made significant progress toward reforms in line with programs and is managing resources effectively to ensure sustainable implementation.
85. The sustainability of the Emergency Assistance for Recovery from Tropical Cyclone Winston and the Fiji Cyclone Emergency is partly dependent on environmental factors. However, the government has displayed a commitment to financing critical areas identified in the disaster recovery framework. While the government has not been able to fully finance the disaster recovery framework, they have prioritized support to the community-level implementation of projects and are working to enforce building codes, encourage private sector insurance, and strengthen options for households to participate in disaster risk insurance schemes.
98 Republic of Fiji. 2018. Budget Estimates 2018–2019. Suva. 99 PricewaterhouseCoopers. 2018. Fiji Budget Report 2018–2019. Suva. 24 Fiji: Validation of Country Partnership Strategy Final Review, 2014–2018
86. Validation of the CPSFR—assessment of sustainability. The portfolio investments have focused on making a sustainable contribution in Fiji. Each project has contributed to government priorities, and those that were evaluated were assessed likely sustainable. Commitments and endorsements made regarding ADB-financed projects by the government have progressed beyond project closure, where available resources and institutional arrangements allow. Indications of sustainability can be seen in the increased budgetary allocations in the transport and WUS sectors. The adoption of the “build back better” approach by the government suggests a commitment to ongoing investment. This validation report finds the ADB support during the CPS period as likely sustainable.
E. Development Impacts
1. Achievement of CPS Results
87. The CPSFR rates development impacts satisfactory. They are assessed against progress towards the CPS objectives and cross-cutting issues. These include inclusive growth, improved service delivery, access to services, reducing volatility and building resilience, governance, and capacity development. The CPS implementation was carried out during a period of reengagement that required systems and process building not immediate project implementation. Projects approved during the CPS period are expected to be largely implemented over the next CPS period (except post-cyclone emergency lending) and as such measuring impact is at an early stage.
88. Achievement of CPS Results. Since the introduction of the CPS in late 2014, Fiji has continued to make progress towards its development indicators and sector-specific targets. These priorities have been set out in the Green Growth Framework and the National Development Plan. The CPS adopted three core objectives, one of which was to encourage private investment in Fiji in order to increase the nation’s growth potential.
89. Economic growth indicators are positive. In 2014–2017, growth averaged 3.4% per year, and ADB has predicted that the growth will reach 3.6% during 2018.100 The CPSFR notes that, if cyclone Winston had not occurred, these targets would likely have been exceeded. Initially, the government had aimed to reduce fiscal debt to 3% of GDP. The fiscal deficit in Fiji was reduced from 4.3% in 2014 to 3.4% between 2015 and 2018. This demonstrates a positive trend, however, as mentioned in para. 11, had tropical cyclone Winston not occurred, it is likely that the target of 3% would have been met. National debt in Fiji fell from 50.8% of GDP in 2013 to 48.4% in 2017 and 50% in 2018. The Government of Fiji is now targeting a reduction to 40% by 2031 and below 35% by 2036.101
90. ADB’s Sustained Private Sector-Led Growth Reform Program has encouraged ongoing engagement with the government in relation to policy reform for SOEs, along with the TA advice through the PSDI’s regional TA. The support has contributed to the strengthening of medium-term growth prospects by supporting the implementation of international best practices in business law and PSM for state investments in areas of economic importance. SOEs have been experiencing improved profitability, with an average return on equity of 3.3% in 2010–2014, compared to 1.9% in 2002–2010. ADB is supporting ongoing SOE divestments activities and one public–private partnerships established in the energy sector, all of which are demonstrating operational profitability and an ability to maintain the pace of growth required by the country. There is no clear evidence that the program has actively capitalized on the private sector investment opportunities presented by improved transport infrastructure or that they have addressed challenges towards the achievement of these targets.
91. Investment in road and water infrastructure has been an enabler for growth. Improved road access and power and water availability for private sector entities have increased for enterprises that have
100 ADB. 2018. Asian Development Outlook 2018 Update: Maintaining Stability Amid Heightened Uncertainty. Manila. 101 Footnote 14. Validation of the Country Partnership Strategy Final Review 25
resources for investment. In addition, there is modest evidence of increased economic activity that can be attributed to project investments. Anecdotal information during the validation mission indicates that there is an increase in traffic movements on improved roads and that a stable water supply has been of benefit to the well-being of citizens in the Suva–Nausori corridor. To generate benefits in economic growth, the improvements need to demonstrate inter-connectivity as well as links to key economic and social centers. For PSM, it is predicted that further benefits are likely to accrue over time, as previous investments in SOE have established a foundation for growth.102 ADB support through the Emergency Assistance for Recovery from Tropical Cyclone Winston ($50 million) and the Fiji Cyclone Emergency Response Project ($2 million) have assisted in the recovery from disasters, and cyclone Winston in particular.
92. Improved service delivery improves public amenity. ADB’s Sustained Private Sector-Led Growth Reform Program has encouraged ongoing engagement with the government in relation to policy reform for SOEs, along with the advice from the PSDI regional TA. Another core objective was to make growth more inclusive and to improve service delivery. The CPS initiatives have contributed to access support for economic growth, but there is little evidence of proactive support for inclusive growth. The CPSFR validation finds that there is clear evidence of improved service delivery, particularly in the water supply sector, with a substantial increase in connections and meterage as demonstrated by a reduction in water wastage and an increase in revenue as explained by WAF. Feedback from the FRA and WAF, as well as from the respective ministries indicates that urban access to services is improving and urban poverty is declining. There are evident disparities in access to services in the northern areas of the country. Data on social access has been sparse and inconclusive regarding direct impact from increased access to services. The 2017 census data, when available may provide a greater understanding of the results of the investments. There is scarce documented evidence on impacts available, particularly in relation to services and employment for vulnerable populations.
93. Integrated, complementary support achieves positive benefits. The main benefit from improved access to infrastructure seems to accrue to larger enterprises that can take advantage of the improved road services, rather than any appreciable increase in small enterprises, as evidenced by the low number of business registrations in the vicinity of the road improvements in the 4 years from 2014 to 2018. Nevertheless, there is evidence that where complementary support is provided for direct economic development by other partners, an increase in business registrations has been achieved. For example, the New Zealand Government has supported dairy development in the Suva–Nausori corridor, and the Ministry of Industry, Trade, and Tourism in conjunction with United Nation Women has supported the development of market facilities.
94. Inclusion did not receive a special focus. Despite the importance given to inclusive growth in the CPS, there is little evidence of appropriate mechanisms to encourage inclusion. The FRA reported that there had been no appreciable difference in inclusion between ADB-funded and government-funded road infrastructure. The key indicators of achievement specified in the design monitoring framework for inclusive road access were reduced travel time, all-weather access to markets, evidence of climate change adaptation built into contracts, and gender equity in access. There has been no tracking of these targets or collection of evidence to demonstrate whether they are being achieved.
95. Specific examples of resilience are positive, but the strategic contribution is limited. The third CPS objective was to reduce the volatility of growth and build resilience. Resilience is a crucial part of core infrastructure in Fiji as it increases the likelihood of service continuity when natural disasters occur. The Public Financial Management Project has worked towards strengthening the government’s financial position in order to encourage growth. However, there is no explicit link between these efforts and increased resilience. The CPS is arguably more operational than strategic, as ADB is not directly engaged with national disaster risk response or risk management efforts. Therefore, the extent of resilience and
102 ADB. 2016. Finding Balance 2016: Benchmarking of State-Owned Enterprises in Island Countries. Manila. 26 Fiji: Validation of Country Partnership Strategy Final Review, 2014–2018
inclusion in terms of services and employment for vulnerable people is limited. Employment was one of the drivers towards the CPS objective to raise Fiji’s growth potential by encouraging private investment. It was expected that encouraging greater investment would translate into more employment opportunities. It is unclear from the documented evidence whether this has occurred. However, it does not appear that there has been any specific targeting of outcomes towards vulnerable populations, such as women and indigenous Fijians.
96. Transport connectivity. ADB has supported infrastructure planning and transport links. To assess the full relevance and effectiveness of investments, the enhanced opportunities for private sector growth and the employment opportunities that have resulted from ADB supported infrastructure would need to be identified. However, the economy, which has been negatively affected by a downturn in key industries such as sugar, has been supported by growth in tourism. There is no clear evidence that the program has actively capitalized on the private sector investment opportunities presented by improved transport infrastructure or that challenges towards the achievement of these targets have been addressed.
97. Leadership, integration, and synergy of strategic investments in pursuing CPS objectives. The CPS notes that partners expect ADB to take a leadership role in supporting the national policy reform, in relation to boosting investment and job creation. The portfolio spreads well across the objectives, but the transport and water projects dominate the portfolio. It is the management of these projects that has driven implementation rather than a response to the specific objectives of the CPS. The extent to which individual investments were scheduled and prepared to achieve national priorities or have contributed to the overall aim of boosting investment and addressing fragility is not clear.
2. Progress on Cross-cutting Thematic Issues
98. Cross-cutting themes of environmentally sustainable growth, PSD, gender equity mainstreaming, and RCI (Table 1) were identified in the CPS in line with ADB Strategy 2020.
99. Environmentally sustainable growth. This agenda was largely addressed as part of the CPS objective of contributing to reduced volatility and improved resilience. A core reason for upgrading roads in Fiji was to increase their resilience to climate change and natural disasters. “Improved safety and resilience of land and maritime transport infrastructure” was one of the key expected outcomes of the Transport Infrastructure Investment Sector Project.103 In addition to infrastructure resilience, the CPS also focused on financial resilience through PSM activities under various TA projects and the policy-based loan. Hence, CPS attention is predominantly limited to financial and physical resilience (climate adaptation).
100. Private sector development and financial resilience. The government has introduced structural reforms to attract greater private investment across the economy, which will allow the government to normalize its expansionary fiscal and monetary stance while maintaining growth and service delivery. The full impacts of public sector initiatives are yet to be realized; however, initial evidence is positive. The approach towards financial resilience was incorporated both through the public sector reform and divestment policies, as well as through disaster response funding. Support from ADB and the World Bank through the Asia Pacific Disaster Response Fund and the Emergency Assistance for Recovery from Tropical Cyclone Winston allowed for post-recovery projects, without significantly reallocating resources from other development programs.
101. Cyclone Winston left considerable destruction, greatly impacting on Fiji’s macroeconomic stance. Funding was desperately needed to support families whose homes had been damaged or destroyed during the cyclone, to assist with the reconstruction of some 495 schools, and to increase social protection programs. According to the CPSFR, three targeted social protection programs were effective
103 Footnote 75. Validation of the Country Partnership Strategy Final Review 27
in contributing towards growth of 0.4% in the economy, rather than the initially expected contraction. These programs addressed the rebuilding of schools, an assessment of the school rebuilding program, funded by the Australian government, and a Help for Homes program focused on reconstruction of remote villages.104 The Help for Homes initiative aimed to assist poor Fijian families in rebuilding their homes by providing them with vouchers. The CPSFR asserted that this program also provided training to encourage the rebuilding of homes so that they could withstand category 3 or 4 cyclones. However, the source document provided as evidence of this claim did not support this.105 It commented that the training program was limited by its ability to obtain funding. Given that the project ended in March 2018, a completion report is not yet available at the time of writing to assess the extent to which the emergency assistance helped meet urgent needs. Site visits to areas in the cyclone’s pathway demonstrated improved housing designs, with strengthened roofing structures now able to withstand poor weather.
102. The portfolio support for resilience seems to have been mainly in response to climate-related disaster recovery needs. As a result, these projects are primarily reactive. While the program has elements that seek to address long-term resilience, such as the “build back better” approach, overall it does not actively address strategic resilience building. ADB adopts a wider and more holistic approach to resilience with four key elements: physical, financial, eco-based, and social and institutional resilience.106 Similarly, the government has a broader resilience lens, specifically, the Climate Vulnerability Assessment: Making Fiji Climate Resilient.107 Government policy documents, such as the Fiji Nationally Determined Contributions Implementation Roadmap and the Fiji National Climate Change Policy, 2012, as well as the regional Pacific Islands Framework for Action on Climate Change, 2006–2015, focus on planning, financing, awareness-raising, adaptation, and mitigation.108
103. Support to SOE reforms has resulted in the full corporatization of EFL and Airports Fiji Limited, allowing them to engage in more private sector borrowing. At the time of writing, Private Sector Operations Department has been unable to make any transactions due to too few projects in the CPS portfolio, available projects are of a small scale (needs to be above $3 million to make a transaction cost effective), and Fiji is flush with commercial bank financing with interest rates with which ADB cannot compete. Both the government and ADB see a potential opportunity for project packaging, but different perceptions of requirements and conditions will require further dialogue and coordination to progress.
104. ADB support for the energy sector is an example of the difficulties in pursuing PSD in the context of recent SOE reforms. EFL has approached ADB for $150 million in financing to replace aged infrastructure assets but has historically had access to interest rates at sovereign levels. EFL will need to pursue commercial lending at commercial rates, which will be significantly higher. As a newly corporatized SOE and transitioning institution, EFL would benefit from capacity development support to work to find the right financing terms to support its new business model. Newly corporatized SOEs might also benefit from ADB assistance in retooling staff to address capacity development bottlenecks and align with business needs associated with more accountable private sector arrangements. These
104 ADB (Pacific Department). 2016. Request for Approval of Minutes of the Management Review Meeting: Proposed Emergency Assistance for Recovery from Tropical Cyclone Winston. Memorandum. 1 June (internal). 105 Document provided as evidence: World Bank Group. 2017. Social Protection and Humanitarian Assistance Nexus for Disaster Response: Lessons Learnt from Fiji’s Tropical Cyclone Winston. Social Protection and Labor. Discussion Paper No.1701. 106 Bhandari, Pretty. Building Resilience in a two-degree world: ADB’s framework for action; and Rogers, Charles, Climate Change Adaptation, 5-6-2017. Climate Risk and Vulnerability Assessment in ADB’s Climate Risk Management Framework, SERD Safeguards Team Retreat. ADB HQ. Physical resilience includes strengthening building standards and regulations for constructing disaster resilient critical infrastructure. Financial resilience supports measure which enhance a countries financial preparedness. Ecosystems-based approaches utilizes biodiversity and ecosystem services as a component in a wider adaptation strategy for people to manage climate change affects. Social resilience involves the prioritization of investments which include an explicit focus on the poor and vulnerable, packaging multi-faceted resilience solutions to enhance their ability to cope and recover from climate and/or related economic shocks (e.g., skills and livelihood development, social safety nets). 107 World Bank. 2017. Climate vulnerability assessment: making Fiji climate resilient. Washington, D.C. 108 This regional framework is now outdated but was cited in the CPSFR. This policy document has been replaced by the Framework for Resilient Development in the Pacific (FRDP). ADB is an active member in the Pacific Resilience Partnership, which is supporting the implementation of the FRDP. 28 Fiji: Validation of Country Partnership Strategy Final Review, 2014–2018
complementary actions will help to optimize outcomes from ADB’s support to private sector enabling reforms.
105. Gender equity mainstreaming. Gender is particularly relevant to transport operations WUS projects, as increasing access and economic growth inclusively and equitably is a key purpose of these initiatives. Table 1 shows the importance placed on gender equity mainstreaming as projects addressing WUS were identified as having a high potential for positive impacts and thus received the highest allocation of indicative financing (65% of project financing). Gender equity mainstreaming also received a high level of indicative financing in the transport sector (50% of operations to be gender mainstreamed), in comparison to 30% each for environmentally sustainable growth and public sector development, and none for RCI. It was predicted that transport and water sector projects could substantially impact women, as enhancing access to basic services would reduce women’s time requirements for tasks associated with water and sanitation and enhance their livelihoods through improved marketing of produce associated with improved transport access.
106. Little attention was paid to strategically linking the gender assessments with meaningful gender actions and the implementation of the gender action plans (GAP).109 Only two projects in the CPS portfolio were designed for gender mainstreaming—one each in the transport and WUS sectors. ADB Guidelines for Gender Mainstreaming Categories set out the requirements for GAP implementation and semi-annual monitoring for projects categorized as gender equity mainstreaming or Effective Gender Mainstreaming (EGM).110 The Transport Infrastructure Investment Sector Project and the Urban Water Supply and Wastewater Management Investment Program were categorized EGM. Both projects have substantially delayed GAP implementation with the premise that civil works were also delayed. However, many of the GAP actions and targets are not linked to civil works. Further, GAP implementation monitoring did not follow the ADB template, thereby reducing effectiveness in monitoring and identifying compliance risk. Only the Transport Infrastructure Investment Sector Project produced a GAP Implementation Monitoring Report, but this was both incomplete and did not provide a performance assessment score as required. For the CPS portfolio, the limited attention to timely implementation in GEN/EGM projects resulted in gender equity mainstreaming not considered effective.
107. Fiji has a Ministry for Women, Children, and Poverty Alleviation, which implements a Women’s Plan of Action. The Ministry provides policy advice to the government on issues such as gender and climate change, the elimination of violence against women, access to services, and women’s economic empowerment. Fiji has also established a Poverty Monitoring Unit under the ministry, which is responsible for monitoring the Women’s Plan of Action, as well as a dedicated gender and climate change officer. The country has witnessed a growth in women’s participation in a range of economic activities, including as market vendors and through improved access to services (e.g., health services). Engagement with ADB in these areas has only come about following July 2017 approval of a regional TA to support women and climate change resilience, replicating a successful regional project piloted under ADB’s Southeast Asia Department.111
108. Civil Society has also been very active in supporting gender equity. Australia’s Department of Foreign Affairs and Trade (DFAT) is providing A$320 million for Shaping Pacific Women’s Development (A$26 million Fiji allocation), considered DFAT’s most successful program. The program provides financial support for a range of civil society organizations, in support of women’s economic empowerment (e.g., supporting female entrepreneurs and training in the tourism sector). As such, there is a range of considerations that could have been incorporated and institutions that ADB could have partnered with to advance a more robust gender equity mainstreaming program.
109 ADB. 2016. Fiji Country Gender Assessment 2015. Manila; and ADB. 2014. Gender Analysis (Summary). Manila. 110 ADB. 2012. Guidelines for Gender Mainstreaming Categories of ADB Projects. Manila. 111 ADB. 2017. Strengthening Women’s Resilience to Climate Change and Disaster Risk in Asia and the Pacific. Manila; and ADB. 2011. Harnessing Climate Change Mitigation Initiatives to Benefit Women. Manila. Validation of the Country Partnership Strategy Final Review 29
109. Regional cooperation and integration. The Pacific has not historically been integrated in the same way as other small remote islands areas (e.g., the Caribbean) where RCI allows for economies of scale. The main RCI investments in the Pacific have been in telecommunications (regional TA) and connectivity in trade and transport. The extent of Fiji’s participation in the four regional TA projects (Pacific Private Sector Development Initiative, Pacific Economic Management Project Phase II, Establishment of the Pacific Region Infrastructure Facility Coordination Office, and the Strengthening Climate and Disaster Resilience of Investments in the Pacific, in paragraphs 25 to 29) is limited: most information and communication technology cables ultimately connect to Fiji, although there was no major CPS financing. Likewise, regional trade and transport investments will ultimately reconnect all international ports to Fiji, although no CPS investment has been made in this area. Trade and transport facilitation investments encompass 80% trade with Australia and the United States of America and 20% inter-regional trade with the Pacific, including Fiji. Fiji has higher visibility in RCI activities supporting PSD as the University of the South Pacific, and the Pacific Islands Secretariat is based in Suva; and climate change where Fiji has played an important role in climate change through its representation in the 23rd Conference of the Parties to the United Nations Framework Convention on Climate Change and as the first DMC to access funding from the Green Climate Fund with ADB as the intermediary.
110. The CPS did not envision support to RCI as demonstrated by the 0% allocation (Table 1), which reflects both Fiji’s caution and RCI investments in the region, which materially link to Fiji investments. While the CPSFR mentions RCI as a driver of change in encouraging greater economic integration, supporting Fiji’s role as a transport and information and communications technology hub, and working with regional organizations active in Fiji, the evidence is limited. For example, the Secretariat of the Pacific Community (SPC) based in Suva, which provides sector, thematic, and advisory TA, convenes a Pacific Transport’s Ministers Meeting every 2 years. SPC reports that ADB does not usually attend and they find it challenging to work with ADB. SPC advised they have tried without success to work together on maritime transport (both Ministry of Infrastructure and Transport and SPC see this as a priority) to implement the Pacific Regional Transport Framework.112
111. The 2006 coup has affected Fiji’s appetite for regional cooperation and wider civil society participation. Fiji was suspended from the Commonwealth and regional bodies during the period of disengagement (2006–2014). This experience of isolation has created a reluctance to engage fully in regional cooperation. Following the coup, greater centralization arose from the government as demonstrated by the removal of politically appointed municipal councils, control of unions in bargaining processes, and limitations placed on local assembly. These actions have affected the development of a mature civil society environment, where civil society organizations are an important stakeholder in regional cooperation.
112. Validation of the CPSFR—assessment of development impacts. This validation finds the development impacts satisfactory. Public financial management and SOE support have resulted in multiple benefits. For transport and water sector investments, beneficiary outcomes in terms of improved employment, poverty reduction, and enhanced economic growth were envisioned impacts stated in the CPS objectives. However, this enabling environment approach resulting in population benefits is not explicit from the project documents or evidence available. Consequently, the CPS assertion of impacts in these areas has not been demonstrated through the programming. The validation team assesses that the programming was relevant, and level of results was commensurate with the ability of ADB and the government to work together, but that the CPS was somewhat ambitious given the limited time of engagement and limited capacity available. In particular, the expected development impacts for women have not been realized.
112 The Secretariat of Pacific Community is the principal scientific and technical organization in the Pacific region, providing TA in a range of strategic areas such as climate change, fisheries, and regional transport. It is an international development organization owned and governed by its 26 country and territory members. 30 Fiji: Validation of Country Partnership Strategy Final Review, 2014–2018
113. The validation team assesses that the programming resulted in positive and sustainable benefits that are likely to lead to longer-term development impact.
F. ADB and Borrower Performance
114. ADB performance. The CPSFR discussed but did not rate ADB’s performance. This validation sees ADB’s performance as satisfactory. ADB performed positively in relation to its close engagement with the main agencies and implementation partners. ADB’s SPSO was noted as being a strong advantage for ADB for rapid response and productive dialogue due to its local presence. ADB is viewed as a trusted partner, with government commenting on its appreciation of the continued technical support and the assistance to navigate sometimes onerous safeguards and procurement procedures. ADB has been an active development partner in the informal monthly development partners meetings that have provided a platform to share programming objectives and determine opportunities to leverage resources, including cofinancing.
115. The CPS designed by ADB appropriately addressed the development challenges identified in national development and sector strategies. However, the short period to prepare and seek approval of the Transport Infrastructure Investment Sector Project in early December 2014, soon after the CPS was approved, and reengagement was formalized, is a concern given the challenges experienced during implementation. A more considered and analytical approach to CPS preparation—or at least a strategic follow-up—would have provided a stronger CPS implementation.
116. ADB has faced challenges, such as government agency communication issues and different perspectives on the scope and focus of priority works and approaches (e.g., in both FRA and Fiji Ports Corporation Limited) but they are gradually being addressed within the open atmosphere of constructive dialogue between ADB and the government. For example, FRA has commented that its objective is to ensure access to all, including rural hinterlands with limited populations, anticipating that economic growth will follow improved access. For ADB, this presents challenges where the rate of return in small population areas may not be economically viable to finance projects. Attention to a more integrated approach, such as seeking multiplier effects by linking transport access with agriculture markets, may be needed to increase economic viability while addressing equitable access.
117. Insufficient staffing complements have, at times, influenced performance. While the steady presence of safeguards expertise was appreciated and necessary to support safeguards compliance, social development and gender and development expertise to support GAP compliance and optimize social inclusion and poverty reduction opportunities were missed. Safeguards officers, both in headquarters and the SPSO, provided de facto GAP support in the absence of available technical expertise. A headquarters-based gender and development specialist, covering all 14 PARD countries, was recruited in September 2018 to address technical gaps. However, complementary national technical support may be needed to strengthen the resident mission (similar to arrangements in the Southeast Asia Department, the South Asia Department, and the Central and West Asia Department), in order to effectively address the backlog of due diligence monitoring, GAP implementation, and executing agency capacity development. Attention to staffing considerations is needed, given the extent of gender and development challenges in Fiji, and elsewhere in the Pacific, affecting ADB’s ability to optimize development outcomes.
118. Borrower performance. The validation concurs with the CPSFR’s borrower performance rating as satisfactory. Initial capacity issues relating to reengagement with Fiji impacted early CPS implementation. Understanding of and developing competence in ADB safeguards and procurement procedures has been a challenge for government implementing agencies. Further, rising implementation needs associated with institutional changes of key government partners (EFL, FRA, and WAF) have created challenges that will require closer mentoring to support institutional transition, new business model performance, and loss of capacity associated with changing institutions and new staffing complements. Validation of the Country Partnership Strategy Final Review 31
119. While ADB’s modalities may have been suitable initially, the demands of subproject design and implementation arrangements associated with sector and MFF modalities have been challenging for some agencies. The sector modality has been ambitious for FRA, which has suffered from a lack of in- house technical expertise in safeguards and procurement in the past. For FRA, this has been compounded by a lack of implementation support consultants while attempting to do everything in-house, at the cost of delays in implementation. Similarly, availability of government counterpart staffing with appropriate skill sets has affected implementation of GAPs. FRA has actively addressed capacity limitations through increased staffing from 140 to 200 staff as well as individual management consultants supporting procurement and safeguards.
120. The government has shown a high level of commitment to improving road infrastructure as demonstrated by the regular allocation of a maintenance budget. Similarly, government commitment to creating an enabling environment for PSD has been shown through the execution of policy reforms, establishing regulatory measures and implementing SOE divestments under the policy-based loan subprograms. PSM achievements in partial and full corporatization of key SOEs have created their own institutional challenges. These include, in some cases, experienced government staff left behind while newly established agencies develop capacity and/or adjust to the demands of new business models.
121. However, specific challenges remain that affect implementation capacity. While the government has been engaged in ADB capacity development efforts, staffing limitations remain. For example, Ministry of Infrastructure and Transport notes they need more staff with transport qualifications, and there is no qualified hydrologist in WAF to support the water sector.
G. Overall Assessment
122. This validation report confirms the findings of the CPSFR that ADB’s country program in Fiji from 2014–2018 was successful. In Appendix 4, Table A4.1 reconstructs the CPSFR rating by sector. The validation team assesses that the choice of sector and financing instruments were relevant and commensurate with the joint objectives of ADB and the government. The CPS targets could have been more realistic given the context of reengagement and the implementation capacity available. Several strategic approaches outlined in the CPS were not fully reflected in the programming itself and, while operations before engagement were rated successful, it is still too early to judge post-reengagement efforts given little evidence to support effectiveness, resulting in a downgrading of relevance and effectiveness assessments (Table 7).
Table 7: Country Partnership Strategy Final Review and Validation Ratings Evaluation Criteria CPSFR Ratings Validation Ratings Relevance Highly Relevant Relevant Effectiveness Effective Borderline Effective Efficiency Less than Efficient Less than Efficient Sustainability Likely Sustainable Likely Sustainable Development Impacts Satisfactory Satisfactory Overall Rating Successful Successful CPSFR = country partnership strategy final review. Sources: ADB. 2018. Country Partnership Strategy, Fiji 2014–2018. Manila; and Independent Evaluation Department.
123. Drivers to the CPS objectives. Several key factors facilitated the achievement of the CPS objectives. One of these factors was ADB’s ability to gain cofinancing, which has been appreciated by the government and other development partners. The country presence of the SPSO has been invaluable in maintaining ongoing dialogue and establishing an active and trusted working relationship. The office has endeavoured to be responsive to government requests. Other factors that helped realize the objectives of the CPS included a clear land registration process, which facilitates access to land for redevelopment, the availability of technical specialists that add value in projects (particularly during 32 Fiji: Validation of Country Partnership Strategy Final Review, 2014–2018
implementation), flexibility in funding modalities that enable projects to adjust to context, and the development of a foundation through TA and policy support for future programming.
124. Barriers to the CPS objectives. A number of barriers hindered the achievement of the CPS objectives. FRA was reluctant to accept international management contractors following bad experiences with such international contracts. In addition, gaps in communication and conflicting priorities contributed to long delays on projects, which severely impacted their efficiency. Safeguard and procurement requirements have created confusion and contributed to delays, but capacity in these areas is improving. A lack of specific expertise on the key thematic drivers has limited the effectiveness of gender and inclusion initiatives. The CPS results framework was not used as a focus for thematic involvement and, consequently, drivers have not been given even attention (Appendix 4, Table A4.2). For example, governance and capacity development have received a much greater level of attention than gender, disaster risk management, and resilience. While there are a few targets for gender, they lack an outcome-based approach. In addition, the disaster risk management approach was reactive, rather than proactive or strategic.
H. Assessment of Quality of Self-Evaluation
125. The CPSFR was prepared with a satisfactory level of effort and reflection. The CPSFR effectively covers the period of investment and notes both achievements and challenges in a manner that was verified during the validation mission. The main areas of departure between the self-assessment and the validation were in consideration of the extent to which the CPS itself was responsive to the context at reengagement. The CPSFR considers the CPS to be highly relevant. The validation concurs with the importance of the CPS objectives but does not see the design of the detailed strategies and programming required to achieve the articulated objective as equally high quality.
126. With the CPS approved very late in 2014 after a substantial period of disengagement, the SPSO advised the focus of the CPS was on reengagement rather than project implementation. However, the CPSFR does not identify what reengagement strategy was taken, nor self-assess its performance. From the ADB Engagement Review undertaken to inform the CPS preparation, several lessons were not addressed in formulating the CPS.113 Lessons related to the CPS objectives include, for example, consideration of implementing agency capacity to manage contracts in selection of procurement methods, ADB assistance in employment creation and livelihoods, addressing institutional capacity constraints and high implementing agency and Ministry of Finance turnover before implementation starts, executing and implementing agency implementation capacity in financial management and withdrawal applications, and specific efforts to target vulnerable populations groups to develop new economic opportunities. The CPSFR does not comment on lessons that were not taken up in the CPS.
127. Limitations were found in the CPSFR assessment of cross-cutting themes. In assessing the performance of operations, the CPSFR could have reported on CPS cross-cutting thematic outcomes under “relevance” and included CPS objective 2 in the “development impacts” assessment, including identification and explanation of gaps in data. The validation noted a disconnect between the CPS cross- cutting themes of “gender equity” and “regional cooperation and integration” and its proposed performance outcome metrics. The gender equity theme aims to incorporate key gender concerns in project designs through the promotion of gender equity in access to social services and income- generating opportunities—both not materially covered in the CPS program but, rather, through an external regional health sector TA.114 Similarly, the CPS advises the RCI cross-cutting theme is to be channelled through the implementation of a process framework not materially supported under the CPS.115 Lastly, “disaster risk management and climate resilience” is addressed both as a CPS objective and
113 Footnote 2, Supplementary document 3. 114 ADB. 2010. Promoting Evidence-Based Policy Making for Gender Equity in the Pacific. Manila. 115 Pacific Islands Forum Secretariat. 2014. The Framework for Pacific Regionalism. Suva. Validation of the Country Partnership Strategy Final Review 33
cross-cutting theme. In view of these discrepancies and noting the similarities between the CPS cross- cutting themes and CPS results framework’s strategic priorities, the validation utilized the CPS indicative sector financing allocations for cross-cutting issues (Table 1) to assess the performance of thematic outcomes. Despite the inconsistency in metrics, the validation is of the view that the issue of inclusion and benefit capture referenced under CPS objectives 1 and 2 required greater attention across the portfolio.
128. Limitations were also found in the scope of portfolio coverage. Three grant projects and one TA were missing in the performance review and ratings. These included Fiji Flood Rehabilitation Project, Flood Emergency Response Project, Fiji Cyclone Emergency Response Project, and Implementing Reforms of State-Owned Enterprises TA. The complete portfolio is reflected in Table 3.
129. In view of ADB as a knowledge bank, more attention could have been given in the project completion reports to drawing lessons and capturing tacit operational knowledge so that it can be shared and utilized both by ADB and member countries. Similarly, the CPSFR could have given more attention in articulating specific lessons in relation to the CPS goals and thematic focus.
CHAPTER 4 Key Lessons and Recommendations
A. Key Lessons
130. The CPSFR identified 10 combined lessons and recommendations: (i) coherence and continuity of ADB engagement is needed, (ii) continued flexibility in implementation is needed, (iii) close cooperation—not only coordination—with partners is needed, (iv) recognizing the inevitable capacity constraints of implementing partners is important, (v) an on-the-ground presence is critical, (vi) there are opportunities for greater private sector investment and use of ADB transaction advisory service, (vii) local currency lending could lead to new opportunities, (viii) ADB needs to manage rather than avoid risk, (ix) ADB should consider the government’s request for more concessional resources for vulnerable countries facing major disasters, and (x) ADB should consider options to strengthen inclusion. While, the validation team generally supports these, rather than lessons, many of the statements were formulated as issues or a presentation of opportunities. Many would be better presented as a checklist of elements to consider in preparing the next CPS. The following lessons deepen the emphasis on the above points.
131. A “build back better” approach can address the dual objectives of improving infrastructure resilience and enhancing support for social protection programs. The CPS adopted a “build back better” approach in delivering transport and WUS investments, and budget support for post-emergency assistance. “Build back better” improved standards used in ADB-financed investments to withstand floods (e.g., strengthening road capability and more strongly engineered and raised bridges) have also been integrated into the design standards for government-supported social protection programs (e.g., school rebuilding, home reconstruction in remote villages).
132. Use of traditional civil society organizations can both serve as a conduit for participation and reduce safeguards risk. ADB’s engagement with iTaukei traditional land management bodies in focusing on land access, rather than acquisition, has been a useful strategy to minimize involuntary resettlement concerns. The use of traditional organizations also optimized the participation of local authorities and communities in development projects. CPS portfolio projects in transport and WUS projects applied the Common Approach, which recognizes scarcity of and deep attachment to the land and natural resources, the traditional leadership and decision-making approaches, and recognized the importance of community in the design and implementing development projects. 116
133. Relationship building through TA and emergency response develop opportunities to expand the country portfolio. The efforts made by ADB and SPSO in particular to build and maintain relationships with the government and other development partners during the period of disengagement and afterwards were instrumental in ADB becoming a credible and leading development partner in Fiji. The willingness of ADB to discuss and respond quickly to government needs and provide relevant expertise, built confidence in ADB’s added value to Fiji’s development agenda. Consequently, ADB is now perceived
116 The Common Approach is a multi-donor approach developed by the Environmental and Social Safeguards Working Group, Pacific Regional Infrastructure Facility.
Key Lessons and Recommendations 35
as a lending partner of choice for Fiji, and as a capable leader in cofinancing opportunities with other potential lending partners, leading to a larger and more diverse portfolio than would otherwise have been possible.
134. A desire for rapid reengagement can result in some development risks being overlooked. Reengagement with a country requires a specific strategic approach and needs a discrete objective of its own. The CPS was developed rapidly, in response to the reengagement opportunity, and without full awareness of the implications of the reengagement. These implications emerged over the evaluation period, for instance in areas where government staff had limited command of ADB procedures and where institutional arrangements within government were uncertain or unclear. There was a need for investment in capacity development immediately upon reengagement, to emphasize ADB requirements. Clearer communication of the agreed strategies, as well as re-adjustment of priorities during the CPS period could have been beneficial. Even though ADB did maintain a presence in Fiji during the period of disengagement and continued to fund existing programs, the reengagement process required the acknowledgment of changed circumstances and not a continuation of ongoing programming as with most other CPS initiatives. Upon reengagement, a simpler CPS that met reengagement requirements at the time, may have been more realistic.
135. Expectations of project implementation should be adjusted to account for limited experience, expertise, and technical capacity, especially soon after reengagement. Accurate acknowledgment of in- country capacity development requirements is necessary to ensure that projects do not exceed the capacity of the country’s agencies, in both expertise and institutional capacity. Actual CPS programming must reflect the challenges associated with the country’s transition period. Although the government appreciated the wider range of financial instruments available, it was not sufficiently prepared for the learning required and the complexity of the different processes involved. The new government included capable personnel, but they held multiple roles and were thinly spread. Programming needed to account for the lack of experience in the required processes and procedures for ADB, including the new financing mechanisms introduced during the country program. ADB’s support also contributed to institutional changes in key implementation partners, as part of the SOE divestment process where, within a sector (e.g., EFL, FRA, and WAF) and regulatory authority, the Fijian Competition and Consumer Commission, there are still unclear or newly established lines of responsibility. This requires additional expertise and technical capacity support in key roles to ensure effective program implementation and reporting.
136. Periodic reviews post-reengagement will strengthen implementation and support program adjustments. The CPS is a strategic exercise that was introduced at a very early stage of reengagement. A CPS is a process that needs detailed design and review during implementation. Given the reengagement approach, the country operations business planning process allowed for project pipelines to be adjusted, but it did not review CPS targets or reconsider strategic objectives and thematic priorities outlined in the CPS. Consequently, targets were not sufficiently realistic. A more frequent and strategic review, such as a midterm review after 2 years would have allowed readjustment to changing country conditions and assessed the extent of reengagement in the absence of annual CPS monitoring. This may have required some re-evaluation of approaches and readjustment of targets at the time.
137. Gender and other cross-cutting issues require specific attention and application of expertise if results are to be achieved. Strategic intent toward gender equity mainstreaming is evident in the documentation. However, its promotion at the project design level requires the necessary expertise to determine strategic gender equity mainstreaming and other cross-cutting opportunities and actions, aligned with key issues identified in ADB thematic and government national and sector assessments. Effective gender equity mainstreaming practices in project implementation require specific attention to monitoring, technical oversight, and development capacity within government implementation partners.
138. Encouraging private sector investment to support growth is unlikely to generate results if there is no deep understanding of the unique constraints facing small island developing states. The core objective in the CPS, to raise Fiji’s growth potential by encouraging private sector investment upon 36 Fiji: Validation of Country Partnership Strategy Final Review, 2014–2018
reengagement, was perhaps premature in that more space was needed to develop an approach based on sound diagnostics, potential for partnerships, and a better understanding of the unique constraints to private investment in small, isolated, island states.
B. Recommendations to ADB
139. The following recommendations have arisen from the validation process:
140. Pay more attention to tailored capacity development in the next Fiji CPS for long-term sustainable results. Consider the changing institutional context for capacity development support and allocate resources for technical assistance for implementing partners, in line with emerging requirements. Institutional bottlenecks are restricting growth in sectors with great potential, for example, in transport and energy. Institutional assessments to better assess capacity gaps and preparation of tailored capacity development plans to equip local actors with the skills and competencies they need to execute sector programs and projects functionally, are required. Strategic capacity development needs can focus on investing in local institutions, rather than current heavy reliance on external experts in key implementing agencies. ADB can support Fiji’s capacity needs, as well as Fiji’s leadership role in capacity development, through investing in centers of excellence, such as the University of the South Pacific, as a key agent. Implement such a program within the first 2 years of the new CPS period given the complexity of new financing instruments and approaches. This includes providing expertise to improve knowledge and practice on safeguards, procurement, and gender mainstreaming compliance. As of 2018, ADB is the preferred lender and a leader in the Pacific region. If ADB is to maintain this position, it is important that it continues to provide leadership in skills and advice in key areas of technical competency.
141. Pursue the improvement of financial, climate, and social resilience in Fiji and define ADB’s role with relevant and realistic support. Investment in capacity development and improved governance in the CPS, 2014–2018 has led to improvements in institutional management and economic growth in support of macroeconomic stability and financial resilience. The government embraced recommendations to privatize a number of assets in Fiji. From 2010 to 2014, the country experienced rapid growth, but in 2014, growth continues to rise but at a slower pace. Institutional bottlenecks are restricting growth in sectors with great potential, for example, in transport and energy. In order to continue to support growth, Fiji requires ongoing skills and expertise to assist in progressing to the next level of maturity while pursuing a resilience pathway.
142. Clearly define ADB’s role in building resilience. One of the main reasons that the CPS was not viewed as highly relevant was because there was little engagement in a broader strategic and transformational approach to resilience. The PSM investments were assessed as relevant to assist in financial resilience to enable the government to respond to its own demands for a better response to calamities and shocks. Emergency relief is not a core focus of ADB lending and, while the projects were relevant and effective, there is now a need for ADB to focus on where it can add value to improving national resilience for CPS, 2019–2023.
143. While ADB does not utilize a specific model in incorporating resilience at CPS level, a systems approach in supporting multi-dimensional components of resilience starts with analytical work to inform CPS preparation at the national level, to be translated into consultation with civil society and relevant government agencies and coordination with other development partners, in determining forward actions.117 ADB can proactively engage in national resilience strategy, processes and platforms, working with agencies such as the Global Facility for Disaster Reduction and Recovery or focus on specific sector(s)
117 ADB. Pacific Approach 2016–2020, Climate Change and Disaster Risk Management Assessment, and Government of Fiji, World Bank, and Global Facility for Disaster Reduction and Recovery, 2017. Fiji 2017: Climate Vulnerability Assessment–Making Fiji Climate Resilient. World Bank, Washington D.C.
Key Lessons and Recommendations 37
in developing strategic actions, together with partners such as the SPC.118 Taking a higher strategic emphasis on resilience could include analytical work to assess sectors at higher risk and potential for building resilience, followed by identification of specific investments to strengthen resilience (e.g., agriculture, rural and urban development, tourism). This would be followed by populating country operations business plans with a primary objective of resilience building. The emphasis would be on building climate and disaster risk resilience through projects, as opposed to resilience of projects in current climate screening and proofing approach. A more systematic approach would also seek to proactively harness ongoing technical assistance, such as the Pacific Disaster Resilience program, in materially informing resilience planning and policy support.
144. A system approach also demands ADB teams with a wide range of expertise to address a multi- dimensional resilience approach. At the time of writing, SPSO does not have sufficient access to staff with the required expertise, who will integrate climate-resilient infrastructure with other strategic components of resilience, to address these areas adequately. Therefore, a much more strategic focus on resilience is required in the forthcoming CPS. Alternatively, ADB may retain its focus on climate proofing of infrastructure. Regardless of the approach, CPS, 2019–2023 will need to be explicit to manage expectations of where ADB can and cannot assist. Furthermore, the expected targets in these areas should be more clearly stated and tracked than in CPS, 2014–2018.
145. Invest in project design and implementation that actively ensure benefits to vulnerable Fiji citizens. Inclusion was another core objective of the CPS. It should translate into improvements in terms of access to services and employment, particularly for disadvantaged citizens. At present, inclusivity targets are not being met by the CPS, particularly those relating to gender. There is insufficient data to determine whether enhanced transport access translated into increased growth and employment opportunities. Further, the designated outcome indicator “reduction in the poverty rate among informal settlers by 30%” in the CPS Results Framework for WUS, is an impact indicator, unlikely to be achieved after a CPS cycle. This gap also impacted the CPSFR validation’s rating for relevance. It is important that CPS, 2019–2023 better handle inclusion targets—first and foremost by addressing current staffing capacity gaps. CPS targets need to be more closely linked to ADB interventions and then tracked throughout implementation to assess progress to impact. There is potential for ADB to initiate and improve coordination with the local private sector and other development partners in providing economic and social services to widen inclusion and benefit capture from infrastructure. This report recommends that ADB hones-in on its comparative advantage in Fiji in relation to inclusive access to infrastructure and services rather than on the sectors more typically associated with inclusion (health and education), but where ADB is currently less active, and other development partners are making an effort.
146. Develop a specific private sector development approach in the next CPS. Continue support to SOE reform, under ADB’s support to improved governance in PSM, to assist in the on-going restructuring and reform. Other opportunities for PSD should also be explored, drawing on existing programs and experience on both the sovereign and non-sovereign activities of ADB, and look for partnerships and complementarity with other development organizations operating in this space. A more comprehensive approach to optimizing PSD should include continued support to corporatization of key government entities, gradual removal of business barriers to encourage both homegrown companies as well as external investors, tax incentives to target entry and growth of specific industries in Fiji (e.g., energy sector), and exploration of credit enhancement products to protect the private sector against key risks and enhance synergy with SME-enabling measures supported by ADB and other development partners. These include, for example, Australia’s Department of Foreign Affairs and Trade’s Market Development Facility to stimulate pro-poor growth in key sectors where there is high growth potential (e.g., tourism, horticulture, and agri-exports). Such coordination with development partners is essential to optimize
118 Global Facility for Disaster Reduction and Recovery (GFDRR) is a global partnership of 37 countries and 11 international organizations to support developing countries to understand, manage, and reduce risks from natural hazards and climate change. ADB may seek to partner with GFDRR’s Small Island States Resilience Initiative in strategic planning and financial support, in knowledge exchange through its global community of practice, and ensuring complementarity of TA to optimize scale and efficiency of resources. 38 Fiji: Validation of Country Partnership Strategy Final Review, 2014–2018
development impacts as well as addressing the capacity problem of the government to avoid confusion with multiple approaches and duplication of efforts.
147. Integrate the Fiji program with ADB and other strategic regional programs. The final recommendation from the CPSFR validation is that the CPS should emphasize a regional focus. The Pacific approach encourages synergies between development agencies and nations via an integrated framework for development in the region and more engagement with regional institutions, for instance on PSM, communication infrastructure and systems and maritime transport issues. ADB should continue to pursue the government’s interest in integrated transport options and encouraging synergies with other development partners in areas of ADB comparative advantage, rather than widening its scope in new sectors. This should include a more strategic link between the CPS and regional initiatives both within ADB and with regional agencies based in Fiji in areas of importance to the ADB portfolio, particularly regarding climate resilience, sustainable transport, and PSD for inclusive growth. This approach will help to avoid fragmentation and duplication and could contribute to a more transformational approach for Fiji and the wider Pacific region.
Appendixes
APPENDIX 1: ADB COUNTRY PORTFOLIO FOR FIJI, 2014–2018
ADB Funding Cofinancing Loan/ Approved Disbursed PCR/ Project Grant/TA Modality/ Approval Amount Amounta Fund Amount Fund TCR/PVR Number Number Project Name TA Type Date Closing Date ($ million) ($ million) Type ($ million) Source Rating Agriculture, Natural Resources and Rural Development 43110-013 L2541 Emergency Flood Recovery (Sector) Sector 27-Aug-2009 17-Jul-2015 17.56 17.03 OCR - - LS | LS Project Energy 48049-001 TA8971 Support for Energy Sector CDTA 29-Sep-2015 31-Mar-2019 1.00 0.42 TASF - - - Regulatory Capacity and Electrification Investment Planning Information and Communication Technology 52098-001 TA9516 Support for Fiji’s Ministry of Civil KSTA 26-Apr-2018 30-May-2019 0.22 0.00 TASF - - - Service Public Sector Management 50378-001 TA9427 Supporting Public Financial PATA/ KSTA 24-Nov-2017 31-Jan-2020 0.75 0.00 TASF - - - Management Reform 48490-002 L3667 Sustained Private Sector-Led Growth Policy- 05-Jun-2018 31-Aug-2018 15.00 15.00 OCR - - - Reform Program (Subprogram 1) based Lending (Program) 50181-001 L3403 Emergency Assistance for Recovery Special 30-Jun-2016 28-Mar-2018 50.00 50.00 OCR - - - from Tropical Cyclone Winston Assistance 50122-001 G0466 Fiji Cyclone Emergency Response Special 24-Feb-2016 18-Jan-2017 2.00 2.00 APDRF - - - Project Grant 45239-001 TA 8059 Implementing Reforms of State- CDTA 16-Mar-2012 28-Jan-2014 0.50 0.46 TASF PS Owned Enterprises 46253-001 G0286 Fiji Flood Rehabilitation Project Special 16-Apr-2012 28-Jul-2014 1.00 1.00 APDRF Grant 46129-001 G0283 Flood Emergency Response Project Special 15-Feb-2012 01-Oct-2015 1.00 1.00 APDRF - - - Grant Transport 48141-001 L3210 Transport Infrastructure Investment Project 05-Dec-2014 31-Dec-2020 100.00 3.61 OCR - - - Sector Project (formerly Bridge Replacement Project) 48141-001 TA8777 Strengthening Transport CDTA 05-Dec-2014 14-Sep-2018 0.70 0.05 TASF - - - Coordination Capacity
ADB Country Portfolio for Fiji, 2014–2018 41
ADB Funding Cofinancing Loan/ Approved Disbursed PCR/ Project Grant/TA Modality/ Approval Amount Amounta Fund Amount Fund TCR/PVR Number Number Project Name TA Type Date Closing Date ($ million) ($ million) Type ($ million) Source Rating 48141-001 L8307 Transport Infrastructure Investment Project 22-Jun-2015 30-Jun-2020 - - - 50.00 World Sector Project (formerly Bridge Bank Replacement Project) (IBRD) 49281-001 TA9063 Ports Development Master Plan in Fiji PATA 21-Dec-2015 30-Jun-2017 0.20 0.15 TASF - - PS (Small- Scale) 28261-023 L2514 Third Road Upgrading (Sector) Project 23-Mar-2009 19-May-2014 26.80 26.04 OCR - - S Project (supplementary loan) 47233-001 TA8514 Transport Sector Planning and PATA 25-Nov-2013 08-Mar-2017 0.80 0.78 TASF - - S Management Water and Other Urban Infrastructure and Services 49001-003 L3512 Urban Water Supply and Wastewater MFF: 20-Dec-2016 31-Jan-2026 39.46 0.00 OCR - - - Management Investment Program, Project Tranche 1 49001-003 GR0531 Urban Water Supply and Project 20-Dec-2016 31-Jan-2026 - - - 31.04 GCF - Wastewater Management Investment Program, Tranche 1 49001-001 L6004 Project Design Advance Urban Water Project 09-Dec-2015 12-Jan-2018 2.65 1.52 OCR - - - Supply and Wastewater Management Project 32200-023 L2603 Suva-Nausori Water Supply and Project 15-Dec-2009 14-Apr-2015 23.00 22.26 OCR - - S | LS Sewerage Project (Supplementary Loan) 47237-001 TA8526 Urban Development Planning and CDTA 31-Dec-2013 30-Mar-207 1.30 1.22 TASF 0.35 WFPF S Institutional Capacity Building a As of 31 August 2018. ADB = Asian Development Bank, APDRF = Asia Pacific Disaster Response Fund, CDTA = capacity development technical assistance, G = grant, GCF = Green Climate Fund, IBRD = International Bank for Reconstruction and Development, KSTA = knowledge and support technical assistance, L = loan, LS = less than successful, OCR = ordinary capital resource, PATA = policy advisory technical assistance, PCR = project completion report, PS = partly successful, PVR = validation of project completion report, S = successful, TA = technical assistance, TASF = Technical Assistance Special Fund, TCR = technical assistance completion report, WFPF = Water Financing Partnership Facility. Sources: Procurement, Portfolio and Financial Management Department Project Completion Report and Technical Assistance Completion Report Ratings (PCR-TCR Ratings), as of 31 December 2017; ADB Controller's Department database, as of 31 December 2017; and for 2018 approved projects, ADB eOperations website.
APPENDIX 2: ADB COUNTRY PORTFOLIO BY SECTOR AT PROJECT DESIGN STAGE
Table A2.1: Approved Financing and Actual Disbursement (as of 31 August 2018) for Active and Completed Operations, 2014–2018 Loans Grants TA Total ADB Financing Approved Disbursed Approved Disbursed Approved Disbursed Approved Disbursed Sector No. ($ million) ($ million) No. ($ million) ($ million) No. ($ million) ($ million) No. ($ million) ($ million) Agriculture, Natural 1 17.56 17.03 1 17.56 17.03 Resources and Rural Development Energy 1 1.00 0.42 1 1.00 0.42 Information and 1 0.22 0.00 1 0.22 0.00 Communication Technology Public Sector Management 2 65.00 65.00 3 4.00 4.00 2 1.25 0.46 7 70.25 69.46 Transport 2 126.80 29.65 3 1.70 0.98 5 128.50 30.63 Water and Other Urban 3 65.11 23.78 1 1.30 1.22 4 66.41 25.00 Infrastructure and Services Total 8 274.47 135.46 3 4.00 4.00 8 5.47 3.08 19 283.94 142.54 ADB = Asian Development Bank, No. = number, TA = technical assistance. Sources: Procurement, Portfolio and Financial Management Department Project Completion Report and Technical Assistance Completion Report Ratings (PCR-TCR Ratings), As of 31 December 2017; and ADB Controller's Department database, as of 31 December 2017.
APPENDIX 3: PORTFOLIO OF PROJECTS APPROVED, COMPLETED, AND ONGOING, 2014–2018—DELAYS AND COST OVERRUNS
Table A3.1: Portfolio of Completed Projects, 2014–2018 Total Cost at Date Approval Total Cost Delays in Loan/ Completed (including at months Cost-Overruns Grant/ TA Date (physical cofinancing) Completion (physical (% of approved Project No. Number Project Name Approved completion) $ million $ million PCR Date completion) months) 43110-013 L2541 Emergency Flood Recovery 27-Aug-2009 17-Jul-2015 17.56 17.03 Aug 2016 41 -3.04 (Sector) Project 50122-001 G0466 Fiji Cyclone Emergency Response 24-Feb-2016 18-Jan-2017 2.00 2.00 N/A 5 - Project 45239-001 TA8059 Implementing Reforms of State- 16-Mar-2012 28-Jan-2014 0.50 0.46 Jun 2014 3 -7.20 Owned Enterprises 46253-001 G0286 Fiji Flood Rehabilitation Project 16-Apr-2012 28-Jul-2014 1.00 1.00 N/A 21 - 46129-001 G0283 Flood Emergency Response 15-Feb-2012 01-Oct-2015 1.00 1.00 N/A 37 - Project 48141-001 TA8777 Strengthening Transport 05-Dec-2014 14-Sep-2018 0.70 0.05 N/A 3 -92.43 Coordination Capacity 49281-001 TA9063 Ports Development Master Plan 21-Dec-2015 30-Jun-2017 0.20 0.15 Jul 2017 6 -23.00 in Fiji 28261-023 L2514 Third Road Upgrading (Sector) 23-Mar-2009 19-May-2014 26.80 26.04 Sep 2015 23 -2.85 Project (supplementary loan) 47233-001 TA8514 Transport Sector Planning and 25-Nov-2013 08-Mar-2017 0.80 0.78 Apr 2017 26 -3.00 Management 49001-001 L6004 Project Design Advance Urban 09-Dec-2015 31-Aug-2017 2.65 1.52 N/A* 11 -42.60 Water Supply and Wastewater Management Project 32200-023 L2603 Suva-Nausori Water Supply and 15-Dec-2009 14-Apr-2015 23.00 22.26 Sep 2016 16 -3.20 Sewerage Project (Supplementary Loan) 47237-001 TA8526 Urban Development Planning 31-Dec-2013 30-Mar-2017 1.65 1.22 Jul 2017 18 -5.66 and Institutional Capacity Building G = grant, L = loan, N/A = not applicable, PCR = project completion report, TA = technical assistance. Source: Asian Development Bank.
44 Appendix 3
Table A3.2: Portfolio of Active Projects, 2014–2018 Total Cost Expected at Date of Revised Approval Delays in Cost Overruns Loan/ Completion Date of (ADB Months (Amount Grant/ TA Date (physical Completion Financing (where where Project No. Number Project Name Approved completion) (Financial) Only) applicable) applicable) 48049-001 TA 8971 Support for Energy Sector Regulatory 29-Sep-2015 28-Sep-2018 31-Mar-2019 1.00 - - Capacity and Electrification Investment Planning 52098-001 TA 9516 Support for Fiji’s Ministry of Civil 26-Apr-2018 30-May- 0.22 - - Service 2019 50378-001 TA 9427 Supporting Public Financial 24-Nov-2017 31-Jan-2020 0.75 - - Management Reform 48490-002 L-3667 Sustained Private Sector-Led Growth 05-Jun-2018 31-Aug-2018 15.00 - - Reform Program (Subprogram 1) 50181-001 L-3403 Emergency Assistance for Recovery 30-Jun-2016 31-Jan-2018 28-Mar-2018 50.00 - - from Tropical Cyclone Winston 48141-001 L-3210 Transport Infrastructure Investment 05-Dec-2014 31-Dec-2020 100.00 - - Sector Project (formerly Bridge Replacement Project) 49001-003 L-3512 Urban Water Supply and Wastewater 20-Dec-2016 31-Jan-2026 39.46 - - Management Investment Program, Tranche 1 ADB = Asian Development Bank, L = loan, TA = technical assistance. Source: Asian Development Bank.
APPENDIX 4: SCORES ASSIGNED TO SECTOR AND CROSS-CUTTING OBJECTIVES
Table A4.1: Country Partnership Strategy Final Review Ratings Table Development Sector Relevance Effectiveness Efficiency Sustainability Impact Overall Weight ANR 2.0 1.0 1.0 2.0 2.0 1.6 12% ENE 2.0 2.0 1.0 2.0 2.0 1.8 0% PSM 2.7 2.0 2.0 2.0 2.0 2.1 50% WUS 2.8 2.0 1.8 1.8 2.0 2.1 18% TRA 2.2 1.5 1.2 1.5 1.7 1.6 20% Weighted Score 2.5 1.8 1.7 1.9 1.9 1.9 ANR = agriculture and natural resources, ENE = energy, PSM = public sector management, TRA = transport, WUS = water and other urban infrastructure and services. Notes: Highly Successful: greater than or equal to 2.5; Successful: greater than or equal to 1.75 and less than 2.50; Less than Successful: greater than or equal to 0.75 and less than 1.75; Unsuccessful: less than 0.75 (Based on IED Guidelines for Project Performance Evaluation 2016). Sector weight based on budget allocation as indicated in Country Partnership Strategy, 2014–2018 portfolio by sector. Impact scores were drawn from Country Partnership Strategy Final Review. Source: ADB. 2018. Country Partnership Strategy Final Review, Fiji 2014–2018. Manila.
Table A4.2: Scores Assigned to Sectors by the Country Partnership Strategy Final Review Validation Report Development Sector Relevance Effectiveness Efficiency Sustainability Impacts Overall Weighting ANR 2.0 1.0 1.0 1.0 2.0 1.4 12% ENE 2.0 2.0 2.0 2.0 2.0 2.0 0% PSM 2.0 2.0 2.0 2.0 2.0 2.0 50% WUS 2.0 1.8 2.0 2.0 2.0 2.0 18% TRA 2.0 1.0 1.0 2.0 1.7 1.5 20% Sector Weighted Score 2.0 1.6 1.7 1.9 1.9 1.8a Cross-cutting themes ESG 2.0 1.0 1.5 GEM 2.0 1.0 1.5 PSD 2.0 2.0 2.0 RCI 0.0 0.0 0.0 b Thematic Score 2.0 1.3 1.7 Successful Weighted Score 2.0 1.6 1.7 1.9 1.3 1.7 Overall (0.5*a (Satisfactory) +0.5*b) ANR = agriculture and natural resources, ENE = energy, ESG = environmentally sustainable growth, GEM = gender equity mainstreaming, PSD = private sector development, PSM = public sector management, RCI = regional cooperation and integration, TRA = transport, WUS = water and other urban infrastructure and services, Notes: Sector weightings based on budget allocation as indicated in CPS, 2014–2018 Portfolio by sector. Cross-cutting issues rated as an overall score per cross- cutting issue than as an average across the four themes. Source: Asian Development Bank Independent Evaluation Department.
APPENDIX 5: LIST OF LINKED DOCUMENTS
A. Country Partnership Strategy Final Review, Fiji 2014–2018 https://www.adb.org/sites/default/files/linked-documents/FIJ-CPS-final-review-2014-2018.pdf
B. Portfolio of Projects by Sector, Date, and Cost https://www.adb.org/sites/default/files/linked-documents/FIJ-Portfolio-Projects.pdf