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VOL. 28, NO. 22, Feb 20, 2009 (Falgun 09 2065)
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Strengthen ADB’s Partnership
By BARRY J. HITCHCOCK, country director Asian Development Bank Resident Mission
Thank you for taking the time to come to this press conference today. It is a great pleasure for me to meet and welcome you here. I joined the Nepal Resident Mission in September 2008 and I must say I am very glad to have become acquainted with your beautiful country and people over the past five months.
2008, as you all know, was a remarkable year for Nepal. A very important milestone in the peace process was passed with the successful completion of the Constituent Assembly (CA) elections. This has paved the way for establishing lasting peace and stability, as well as achieving higher and more sustainable economic growth in the country.
2008 was also a good year for ADB in terms of assistance. All of our assistance for investment projects during the year was in the form of grants with $8.0 million approved for the education sector; $25 million for information and communications development; and $106.3 million for local governance and community development. The portfolio as of 31 December 2008 comprised 18 loans worth a net $586 million, 10 investment grants worth $332 million, and 33 ongoing technical assistance projects, totaling $29 million.
For 2008, ADB’s contract awards and disbursement to Nepal reached $145 million and $127 million respectively. The ratio of contracts awarded rose to 24% from 18% in 2007, while the disbursements ratio remained constant at 18% over the same period, resulting in a net resource transfer of $52 million against $49 million in 2007. In addition, no projects were considered at risk at the end of 2008, a remarkable achievement compared to14% in 2007 and 17% in 2006.
But 2008 was not without challenges. We saw price increases for construction materials in April/May; there were high fuel prices plus shortages; the Government’s budget release and program approval for the first trimester of fiscal 2008/2009 suffered delays; and we experienced flooding in the Koshi river and far-western region. However, with the strong coordinated efforts of project staff from both the Government and ADB, the overall 2008 portfolio performance showed an improvement on previous years. I would like to take this opportunity to thank the Government of Nepal for its partnership and providing strong ownership for ADB’s assistance to the country.
Now, returning to our ongoing programs and projects in the country let me provide some specifics.
The Education Sector Cluster Program (Subprogram II) will support the School Sector Reform. It will finance a transitional plan (2007-2010) between 2008 and 2011, jointly with all other 'Education for All' development partners, focusing in particular on a model-building exercise and transition to grade 1-8 basic education in selected districts.
The Information and Communications Development Project will make Information and Communications Technology more accessible, affordable and useful to remote and rural communities.
The Governance Support Program Cluster I will support the Government’s Local Governance and Community Development Program (LGCDP), which will contribute to poverty reduction through inclusive, and accountable local governance and community-led development.
One of the central objectives during my tenure as Country Director in Nepal will be to strengthen ADB’s partnership with the Government, community groups, civil society and the private sector to tackle the many development challenges facing the country. I will aim to make ADB assistance even more responsive to the development needs of Nepal. Through the Resident Mission, ADB will actively participate in, and coordinate its activities and programs with other development agencies and stakeholders as we work to maximize our development impact. ADB will also provide its full support to help consolidate the peace process and to extend assistance to remote communities and disadvantaged groups.
At this point I would like to update you on the development of ADB’s strategy for Nepal for the next five years (2010-2014). The Nepal Resident Mission is leading this process and just last week we held a four-day country partnership strategy (CPS) retreat. The new strategy will include a thorough evaluation of how the current strategy and past assistance program has been implemented. It will also draw from the outcomes of the ADB-DFID-World Bank joint consultations held in 2008. And most importantly, the Resident Mission will seek to align the new strategy with the Government’s own development strategy and priorities.
I would also like to take this opportunity today to unveil a new publication, Voices from the Field: on the Road to Inclusion. It contains the key responses, concerns and issues raised in consultations about the relationship between ADB and Nepal that were organized by the Nepal Resident Mission from January to April 2008. The consultations were part of our midterm review of the present country partnership strategy 2005 to 2009. The aim of the consultations was to gauge local stakeholders' perceptions about the strategy's underlying assumptions, particularly in light of the changed political situation since the strategy was drawn up in 2004. Our Senior Country Specialist, Paolo Spantigati, will tell you more about this publication.
Lastly, I would like to thank all our friends from the media with whom we have always shared a constructive relationship. We consider the media an important institution of development and change and we appreciate the important role you have been playing in Nepal’s development.
Excerpts of the STATEMENT BY BARRY J. HITCHCOCK, delivered at a recently held press conference
