Fiji: Validation of the Country Partnership Strategy Final Review, 2014–2018

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)

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