Industrial Competitiveness and Small and Medium Enterprise Development Program [Loan 1738-INO]

One of these pertains to the linking of loan tranche releases with conditions for the passage of new laws. The passage of laws by the Parliament is normally not within the control of ADB or the government. Therefore, the question arises whether such conditions should continue to be imposed by ADB or, if such links are made, whether more time should be allowed for the laws to be passed. In this case, the delay in the passage of the investment law led to the cancellation of the final loan tranche, and thus to diminished efficiency in resource use.