The Asian Development Bank has approved a US$5 million policy-based grant to help the Nauru Government improve the management of public expenditure and national infrastructure, as well as the governance of state-owned enterprises.
“The Government of Nauru is implementing a comprehensive reform programme, 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 programme builds on the long-term engagement of ADB and Nauru’s other development partners.”
Reforms supported through the Improving Public Investment Management Programme include the improvement of budget control, reporting, and transparency; introduction of a framework to prioritise 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 programme will also create synergies with ADB’s infrastructure investments, including the new seaport and solar facility which SOEs will own and manage.
The US$5 million grant will be sourced from the Asian Development Fund, while the Government of New Zealand have provided US$323,000 in budget support as cofinancing.
The programme 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...
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