ADB Supports Infrastructure Development in Cook Islands
The Asian Development Bank’s (ADB) updated program for Cook Islands for the next four years will support a program of prioritized investments in infrastructure that aim to boost private sector-led environmentally sustainable economic growth.
Additionally, ADB will provide technical assistance to the Ministry of Works focusing on institutional reforms to improve transport, power, water, and sanitation services, according to an ADB release.
The Cook Islands is among the best performing Pacific economies, says ADB. However, fiscal sustainability remains fragile and the small economy is heavily reliant on tourism. Threats to sustained economic growth include the impact of climate change, infrastructure constraints and weak policy, planning and project preparation capacity, as well as an emerging labor shortage. Its economy is also vulnerable to natural disasters.
The Country Partnership Strategy (CPS) for Cook Islands 2008-2012 will include support for an Infrastructure Development Project included in the lending program for about $22 million allocated for the CPS. The Project will rehabilitate and upgrade basic public infrastructure to help Cook Islands sustain its economic growth through increased employment opportunities and improved delivery of basic social services. The CPS also supports good governance and fiscal management.
“The Infrastructure Development Project will directly support national development objectives by spearheading much needed improvements to basic infrastructure, transport, and utilities,” said Philip Erquiaga, Director General of ADB’s Pacific Department.
Climate adaptation is a main feature of project design and will aim to reduce climate-related risks in a cost-effective manner. Preparatory work for the project has already begun, which is expected to include the rehabilitation and upgrading of water and sanitation systems on the two main islands of Rarotonga and Aitutaki. The largest port in Cook Islands at Avatiu will also be upgraded.
Since the Cook Islands became a member in 1976, ADB has approved 13 loan projects amounting to more than $29.5 million and 28 technical assistance (TA) projects amounting to almost $9.6 million.
