Declining ADB country capacity is a big worry

Almost all (99.9%) of ongoing programmes, projects, grants and technical assistance programmes in PNG are administered by the ADB’s country office. Their overall value could be in the vicinity of US$200 million, including US$102 million for the Lae port redevelopment.
This is a substantial amount of money, which requires adequate capacity from both the government and ADB to oversee management and implementation of programmes and projects.
Programmes and projects are funded with loans, with interest rates from as low as 1% to 10% (variable rates).
All we want is that once a project is completed successfully, these projects should be able to generate economic activities that assist the economy to repay these loans while the people of PNG benefit from spin-off activities.
Past experience suggests a failure rate for about half of all ADB-funded programmes and projects since 1971.
When programmes/projects fail, a huge liability is left behind for the country to handle, especially for loans denominated in high yielding currencies, given the volatility of the kina exchange rate.
This is a very serious matter. PNG should not be held responsible for programmes and projects designed elsewhere by people who may lack understanding of the socio-economic situation.
It has been noticed lately that staff turnover at the ADB country office is high. This could be a reflection of what is going on in the ADB headquarters in Manila.
An article in London’s Financial Times has revealed that about 10% of ADB’s professional staff of about 850 left last year. This news is disturbing at a time when PNG is seeking more funds from ADB.
With the departure of the country director and others, the only professional staff left is the deputy country director, who is responsible for all ongoing programmes and projects in PNG.
 

Nigl Kutn Nem
Port Moresby.