Improving Fiscal Sustainability Program (Subprogram 1) (ADB-55017-001)

Countries
  • Nauru
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
C
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Mar 18, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Nauru - Department of Finance
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Law and Government
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 5.60 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 10.70 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Mar 5, 2024

Disclosed by Bank Oct 16, 2023

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the proposed Improving Fiscal Sustainability Program will help the Government of Nauru strengthen gender-responsive fiscal sustainability by implementing policy and institutional reforms to (i) enhance fiscal and debt management, (ii) improve the governance of state-owned enterprises (SOEs), (iii) advance social protection systems; (iv) increase women's economic participation; and (v) reduce gender-based violence (GBV). The program will support key operational priorities of Strategy 2030 of the Asian Development Bank (ADB): addressing remaining poverty and reducing inequalities, accelerating progress in gender equality, and strengthening governance and institutional capacity. The program aligns with all three objectives in ADB's Pacific Approach, 2021-2025: preparing for and responding to shocks, delivering sustainable services, and supporting inclusive growth. The program was designed knowing that Nauru is both a small island developing state and a fragile and conflict-affected situation.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The program is expected to be categorized C for environment, involuntary resettlement, and indigenous peoples.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The government has requested a grant not exceeding $10 million from ADB’s Asian Development Fund to help finance the program. The proposed financing is expected to be disbursed in two subprograms—$5 million for subprogram 1 in FY2024 and $5 million for subprogram 2 in FY2026. With the narrow economic and revenue base sensitive to changes from the NRPC and the NRPC winding down, Nauru faces significant fiscal uncertainty. The program will help the government meet its projected fiscal deficit and development financing needs of $10.7 million in FY2024 (6.9% of GDP). The proposed financing will also help the government maintain the 3 months of non-NRPC expenditure fiscal cash buffer and defray some higher social protection costs.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

No contacts available at the time of disclosure.

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.adb.org/forms/request-information-form

ADB has a two-stage appeals process for requesters who believe that ADB has denied their request for information in violation of its Access to Information Policy. You can learn more about filing an appeal at: https://www.adb.org/site/disclosure/appeals

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

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How it works