Asian Development Bank

The Pacific Energy Update 2017 provides a comprehensive overview of ADB’s energy-focused work in the Pacific. The publication highlights the impacts of ADB-supported energy initiatives completed in 2016 and ongoing in 2017, while providing details of what ADB hopes to achieve in the energy sector in the future.

The bank said strong economic growth was masking urgent infrastructure and environmental challenges that threaten the long term sustainability of Palau's economy.

In an ADB assessment it warned the rapid growth of low-end tourism could damage Palau's famed natural environment and World Heritage sites.

The bank's Liliana Warid says figures showing GDP growth of 5.3 percent in 2014 and 8.2 percent in 2015 don't capture the risks that increased tourist numbers bring to popular sites.

The ADB contributed $US5 million to the Nuku'alofa improvement project.

An ADB report says there's doubt the Government recognised the importance of maintenance of the improved assets.

Matangi Tonga reports continual maintenance of the drainage system is considered essential by the design engineers so it could do its job during periods of heavy rainfall.

The report reveals that cancellation of plans and reallocation of funds had compromised the goals of the five-year project.

It involved an upgrade and rehabilitation of the road network in South Tarawa.

The project was also being supported by the World Bank and the Government of Australia through the Pacific Regional Infrastructure Facility.

The ADB grant was to go to the construction of important road network links by adding an extra 7.8 kilometres of paved road and half a kilometre of unpaved road to cover additional areas in Betio and Bairiki linked to the current project.

Photo: Shifani Sood

The Outer Island Maritime Infrastructure Project aims to construct a small harbour on the island of Nukulaelae, and rehabilitate boat ramps on Nanumaga and Niutao.

Most Tuvalu outer islands lack docking facilities for ocean-going ships making it more difficult to transfer passengers and cargo on workboats.

The Financial reported that the $US13.3 million project is geared to develop an overall plan for making shipping to and from the capital safer and more efficient.

RNZ reports the high cost of living means many people struggle to meet basic needs.

The ADB points out that there is also a lack of access to basic infrastructure, services and utilities and low levels of employment or income generating opportunities.

Of 14 Pacific countries the Marshall Islands population is the most poor, with just over half its people living below the national poverty line.

Tonga's closest neighbours, Fiji, has 31% of its population living below the poverty line and Samoa 26.9%.

Vanuatu has the lowest poverty statistics at 12.7%.

Advance copies of Finding Balance 2016, the latest edition of ADB’s landmark assessment of Pacific SOEs’ performance, were shared at the Pacific Update Conference at the University of South Pacific, Fiji.

The report finds SOE portfolios in the eight Pacific countries examined contributed only 1.8% to 12% to gross domestic product, despite their very large asset base, ongoing government cash transfers, and monopoly market positions. It also finds productivity levels of the SOEs tend to be well below developed country benchmarks.                                             

“ADB is the largest investor in renewable energy in the Pacific, which is still heavily reliant on diesel for power generation,” said Michael Trainor, Energy Specialist in ADB’s Pacific Department. “We are working with governments and communities to improve the quantity and quality of energy services across the region by ramping up support for the transition to renewable energy.”

“The grant and loan will fund the first of three subprogrammes of the ADB-supported Building Macroeconomic Resilience Programme for Tonga,” said Johannes Wolff, Public Finance Economist from ADB’s Pacific Department.

“The assistance is policy-based, meaning the funds can be released as budget support once policy actions outlined in the programme are successfully completed, as they have been in subprogramme one.”

The country relies on unpredictable and volatile revenue sources, such as fishing fees, licensing fees for its ".tv" internet domain, and development assistance, making fiscal sustainability a challenge.

The bank's director for the Pacific Subregional Office, Robert Jauncey, says the policy reform programme hopes to promote public procurement policies and regulations to address these challenges.

The government hopes to support public enterprise reforms and maximise government efficiency and transparency.