This restructuring for the Institutional And Regulatory Framework Strengthening Project for Tonga seeks approval to extend the closing date of the Asia Sustainable and Alternative Energy (ASTAE) grant to allow adequate time for the Tonga Energy Road Map (TERM) as implementation unit to finalize the consulting contract for a planned petroleum study under the project, and for the remaining grant funds to be disbursed.
... See More + The task team seeks to extend the closing date of the grant 12 months, and to adjust the disbursement estimates for the grant to align with the proposed new closing date. There are no other changes to the Project.
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This economy profile for Doing Business 2015 presents the 11 Doing Business indicators for Tonga. To allow for useful comparison, the profile also provides data for other selected economies (comparator economies) for each indicator.
... See More + Doing Business 2015 is the 12th edition in a series of annual reports measuring the regulations that enhance business activity and those that constrain it. Economies are ranked on their ease of doing business; for 2015 Tonga ranks 69. A high ease of doing business ranking means the regulatory environment is more conducive to the starting and operation of a local firm. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 189 economies from Afghanistan to Zimbabwe and over time. Doing Business measures regulations affecting 11 areas of the life of a business known as indicators. Ten of these areas are included in this year's ranking on the ease of doing business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency. Doing Business also measures labor market regulation, which is not included in this year's ranking. The data in this report are current as of June 1, 2014 (except for the paying taxes indicators, which cover the period from January to December 2013).
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The operation is the second and final in the Tonga Economic Reform Support Development Policy Program. The operation will support reforms in public financial management, fiscal policy, and the business environment.
... See More + The operation will consist of a US$ 2.5 million equivalent credit and US$ 2.5 million equivalent grant. Australia, through its Department of Foreign Affairs and Trade (DFAT) is expected to provide associated sector budget support of AU$5.0 million (US$4.4 million) for the same policy actions supported by this operation. The operation carries substantial risk due to thin capacity in the public sector, vulnerability to external economic shocks and natural disasters, and the possibility of setbacks related to the political cycle. Supported reforms will deliver direct improvements in living standards and better prospects of growth and job creation. The development objective is to: i) strengthen public financial management by improving the quality of public procurement processes and the credibility of the annual budget; ii) strengthen fiscal policy with new procedures for granting tax exemptions and reflecting health externalities in excise duty rates; and iii) enhance the business enabling environment by establishing a new policy to support foreign investment and introducing targeted reductions in the cost of electricity.
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Ratings for the Post Tsunami Reconstruction Project for Tonga were as follows: outcomes were moderately satisfactory, the risk to development outcome was moderate, the Bank performance was moderately satisfactory, and the Borrower performance was also moderately satisfactory.
... See More + Some lessons learned included: project implementation periods should allow for possible delays. Even though land acquisition arrangements seemed relatively straightforward at appraisal, unforeseen local political issues that are common in a Pacific island context stalled implementation of physical investments. Adequate time should be allowed for land issues to be negotiated in an appropriate way. Transport impediments (particularly following a major natural disaster such as the 2009 Tsunami) can delay travel of project staff to beneficiary communities and can hold up implementation support missions. Capacity building activities under component three were only loosely linked to reconstruction and recovery activities under the other components and were implemented by a different ministry. Implementation delays resulted as (stretched) project management staff concentrated their time and efforts on facilitating physical investments that met urgent recovery needs.
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Implementation Completion and Results Report ICR3036 JUN 27, 2014