The Asian Development Bank has decided not to enter into any new agreements or contracts with Fiji’s interim government. In an economic assessment posted on their website, the ADB says this decision is based on the fact the bank runs the risk of exposing itself to legal or political risks associated with the country’s financial obligations.
The Asian Development Bank is a major donor to Fijiand finances projects that benefit the grassroot people. Their committment runs into the millions. Now the Bank in its latest economic update says the ADB says their engagement includes consideration whether the new loan would expose ADB to additional legal or political risks associated with the country’s financial obligations.
And the number of countries, particularly ADB member countries and neighbouring countries that have recognized the de facto government or dealt with it as the government of the country. The economic assessment says it’s now unlikely Fijiwill hold elections by March 2009. The ADB saying with the continuing skepticism on the part of some of ADB’s shareholder Governments towards the interim Government, PARD (Pacific Regional Office) is of the view that the conditions set for the second stage of the re-engagement with the Interim Government in new operations do not yet exist. It says consequently, ADB is not proposing a resumption of formal discussions on a new Country Partnership Strategy or new loan or TA processing at this stage.
Adding PARD will regularly assess the conditions for new engagement, with the next assessment to be completed in September 2008. The ADB however has agreed to continue funding the The Third Fiji Road Upgrade Project and the Suva-Nausori Water Supply and Sewerage Project.
But with these projects falling behind schedule, the ADB is proposing to review the need for supplementary resources to finance completion of these two previously approved and on-going projects to assist in reaching originally targeted pro-poor development objectives.