Speaking at the opening of Nepal Country Portfolio Review Meeting (CPRM) on Thursday, Kenichi Yokoyama, the Country Director for ADB Nepal Resident Mission, said that out of a total of US$1.5 billion of active portfolio of 35 investment projects, US$ 900 million is still to be awarded and US$ 1.2 billion is still to be disbursed as of August 31 this year.
Amounts still to be awarded and made disbursement stand at 60 percent and 80 percent of the total active portfolio. [break]
“The amount still to be awarded stands at 60 percent and still to be disbursed at 80 percent, which are very high compared to an ideal of about 30 percent and 60 percent respectively,” Yokoyama said, highlighting the present scenario of portfolio performance under ADB´s assistance in Nepal.
Due to slippage in major projects like school sector program and Melamchi project, compounded with partial approval of budget, contract awarding and disbursement were only 16 percent and 9 percent respectively in 2012.
“The overall performance rating of Nepal in 2013 is 3.0 percent and against the maximum scale of 5.0. This means that Nepal´s country allocation of ADB Fund could be higher by US$ 40 million from present US$ 227 million if the country can achieve the rating of 4.5, which we believe can be achieved,” said Yokoyama.
However, he expressed satisfaction over some positive signs for better performance in coming days due to timely announcement of budget and authorization for expenditures as well as well performance in key sectors such as transport and urban development.
“With these progresses, we hope that the contract award in 2013 can reach close to US$300 million,” he added.
He also said that the upcoming five-year Country Partnership Strategy of ADB for Nepal would emphasize on improved portfolio performance and associated institutional development.
He stressed on the need for taking up a smaller number of projects of large projects enhancing project management system with effective monitoring and troubleshooting and undergoing reform on budget planning, approval and release, public procurement public financial management and other accountability mechanism.
Shanta Raj Subedi, secretary at the Ministry of Finance (MoF), expressed concern over the trend of late contract awarding, commitments and staffing for the projects are major hurdles in project implementation.
“This CPRM should seek the measures to do away with such problems which have been plaguing the implementation progress in the projects,” Subedi said.
Best project management teams awarded
On the occasion, four ‘best project management teams’ were awarded for excellence in delivering results in improving water supply and sanitation services, air safety standards and the lives of the rural poor and farmers in Nepal. The teams were associated with Rural Reconstruction and Rehabilitation Sector Development Project, Community Managed Irrigated Agriculture Sector Project, Secondary Small Towns Water Supply and Sanitation Project and Air Transport Capacity Enhancement Project.
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