ADB’s $5 Million Grant to Support Public Investment Management, Fiscal Sustainability in Nauru
The Asian Development Bank (ADB) has approved a $5 million policy-based grant to help the Government of Nauru improve the management of public expenditure and national infrastructure, as well as the governance of state-owned enterprises (SOEs).
“The Government of Nauru is implementing a comprehensive reform program, improving public investment management which will help Nauru sustain a responsible fiscal position and strengthen public service delivery,” said the Regional Director of ADB’s Pacific Liaison and Coordination Office Lotte Schou-Zibell. “This program builds on the long-term engagement of ADB and Nauru’s other development partners.”
Reforms supported through the Improving Public Investment Management Program include the improvement of budget control, reporting, and transparency; introduction of a framework to prioritize infrastructure spending to enhance asset service life; and the establishment of an overarching policy and legal framework for SOE governance to help ensure the government’s public investments are efficient and contribute to public welfare.
By facilitating better asset maintenance and improving the governance of SOEs, the program will also create synergies with ADB’s infrastructure investments, including the new seaport and solar facility which SOEs will own and manage.
The $5 million grant will be sourced from the Asian Development Fund, while the Government of New Zealand have provided $323,000 in budget support as cofinancing.
The program supports ADB’s Strategy 2030 operational priority focused on strengthening governance and institutional capacity, particularly in small island developing states. It effectively mainstreams gender issues through policy actions that encourage the participation of women in the economy.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.