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Advance Action on Procurement and Retroactive Financing

Country/Borrower: The Government of Cambodia

Title of Proposed Project: Public Financial Management for Rural Development Program, Project Grant

Name and Address of Executing Agency:

Components 1-3:
Ministry of Economy and Finance
Address:
Ministry of Economy and Finance
No. 60 Street No. 92 Sangkat Wat Phnom
Khan Daun Penh
Phnom Penh Cambodia
Fax No.: +855 23 430745
Tel No.: +855 23 430745
Email: soksaravuth@yahoo.com
Contacts:
(i) Dr. Sok Saravuth
Component 4:
National Audit Authority
Address:
Accounting officer of PMU, Chief of Office 3,
General Secretariat, National Audit Authority
Fax No. Tel/Fax: 855-23 215 320
Tel No. H/p:016 859 932
Email: sg.audit@naa.gov.kh or davy_chh@yahoo.com
Contacts: Ms. Chhoeuy Davy
Brief Description of the Project:

To support the implementation of the ongoing Public Financial Management reform Program (PFMRP), a project will support institutional and capacity development over the medium term. Implementation of PFMRP reforms will also require technical inputs and targeted on-the-job support to equip the key Government agencies with the required knowledge and skills to ensure that the results of the reforms will be sustained. The sequencing of the project activities will be coordinated with the platform approach of the PFMRP, and will provide for appropriate sequencing, required synchronization, and desired flexibility to ensure success. Building on the capacity development recommendations made under earlier ADB TA support, the proposed project will complement the capacity development action plan of the Economic and Finance Institute (EFI), and the efforts of core advisors and consultants under PFMRP in strengthening PFM reform measures in three rural development ministries - Ministry of Agriculture, Forestry, and Fisheries (MAFF); Ministry of Rural Development (MRD); and Ministry of Water Resources and Meteorology (MOWRAM).

The total project is estimated to cost $4.5 million equivalent. ADB will finance $4.1 million on a grant basis.

Component 1: Improve Public Financial Management Capacity in Rural Development Ministries (Ministry of Agriculture, Forestry, and Fisheries; Ministry of Rural Development; and Ministry of Water Resources and Meteorology). The project activities will assist to implement activities under the Public Financial Management Reform Program (PFMRP) consolidated action plan and ministry action plans. Specific project activities relating to budget planning and execution-including procurement, budget accounting, and monitoring and evaluation-will build upon capacity development recommendations made under the Asian Development Bank (ADB) technical assistance (TA). A capacity development plan formulated by the Economic and Finance Institute for stage 2 of the PFMRP will be tied to the public policy training initiative under the upcoming regional TA. Outputs will be training, workshops, mentor support, manuals, and guidance notes. Change management, organizational improvements will be major training focus.

Component 2: Strengthening Capacity for Internal Auditing in Ministry of Economy and Finance; Ministry of Water Resources and Meteorology; Ministry of Agriculture, Forestry, and Fisheries; and Ministry of Rural Development. In implementing activities for internal audit under PFMRP, and building on the internal audit training plan developed under ADB TA (CAM:4988), this component will provide assistance in the form of on-the-job training, workshops, and seminars; preparation of manuals; drafting of procedures and reporting formats; preparation of reports; field audits; ensuring compliance with standard operating procedures; drafting procurement manuals and the financial management manual for donor-assisted projects; etc.

Component 3: Strengthening Debt Management. This component will assist in (i) reviewing the legal framework of debt management, (ii) drafting the debt-management subdecree, (iii) preparing a debt-management strategy, and (iv) training in the use of debt databases and other debt management procedures. Training and workshops and regular mentor support will be provided. Project will contribute to improvements in the system for capturing and analyzing information on capita spending of all investment projects by assisting in designing, installing and training in a portfolio management database.

Component 4: Strengthening the Effectiveness of the National Audit Authority. Assistance will be provided to the National Audit Authority (NAA) in the form of training and workshops, preparation of manuals, drafting of procedures, and reporting formats for strengthening capacity to undertake externally assisted loan project audits. Support to NAA for seconding auditors to one of the regional supreme audit institutions for peer learning, especially focusing on audit of externally assisted projects will be provided by ADB. The NAA will be assisted in drafting audit subdecrees for implementation of the Audit Law and operationalizing the institutional arrangement between NAA and internal audit departments, following from the provisions in the 2000 Audit Law. Other outputs will be supporting NAA to coordinate an audit peer review and resultant recommendations, and organizing an open forum in 2009 or 2010 for high-level exchange of information and audit experiences for policy dialogue, with participation of selected stakeholders. Study tours will also be supported.

Types of assistance common to all components will be in form of inputs such as: (i) engagement of international and national consultants with relevant competencies in core PFM areas; (ii) peripatetic visits by experts and long-term mentor support; (iii) seminars, conferences, and study tours; (iv) formal training and other workshops; and (v) provisions of materials and equipment, including IT database systems and computer hardware and software.

Brief Description of Goods and Related Services, Works or Consulting Services to be Procured:

The project will be implemented over a period of 3 years. Project activities are scheduled to commence in April 2009 and be completed by March 2012.

Consulting Services and Procurement. The grant assistance will finance a team of 8 international (86 person-months) and 15 national consultants (213 person-months) to build capacity while helping to implement the ongoing PFM reform measures. The consultants, including the team leader, will be selected by ADB through a consulting firm(s) (including joint proposal with domestic firms) through full technical (for component 1) and simplified (for component 3) proposals using quality and cost ratio for Quality- and Cost-Based Selection (QCBS) process (80:20) for components relating to strengthening PFM for rural development and for strengthening debt management. One international consultant and one national consultant for component 2 (internal audit) and one international consultant and one national consultant for component 4 (external audit) will also be selected by ADB following consultation with the Government, on an individual basis.

Component 1:

International Consultants (3):

  1. Public Financial Management and Public Sector Budget Specialist and Team Leader (Intermittent, 14 person-months)
  2. Financial Management (FM) and Accounting Specialist (Intermittent, 10 person-months)
  3. Procurement and project management Specialist (Intermittent, 12 person-months)

National Consultants (4):

  1. Specialist in Budget, 2. Procurement, 3. Accounting, and 4. IT applications (24 person months each, continuous)

Component 2:

International Consultant (1):

  1. Principal Internal Audit Adviser and Team Leader (Intermittent, 10 person-months)

National Consultant (1) :

  1. Audit Expert - Internal Audit ( 24 person months, continuous)

Component 3:

International Consultants (3) :

  1. Public Debt Management Specialist and Team Leader (Intermittent, 15 person-months)
  2. Computer-Based Debt Management System (CBDMS) Specialist(s) - (Intermittent - 10 person-months)
  3. Legal / Institutional Development Specialist - (3 person-months)

National Consultants:

  1. Financial Management Specialist / CBDMS Facilitator (1) - (24 person-months) Portfolio Database Management
  2. Financial System Adviser - (1) - (10 person-months)
  3. System Analyst and Design Adviser - (1) - (5 person-months)
  4. User Interface Designer - (1) - (1 person month)
  5. Quality Assurance Specialist - (1) - (3 person months)
  6. Documentation / Training Specialist - (1) - (2 person months)
  7. Web Developers (3) - (24 person months - 8 person months each)

Component 4:

International Consultant (1) :

  1. Principal Audit Adviser (State Audit) and Team leader (Intermittent, 12 person- months)

National Consultant (1):

  1. Audit Expert (continuous, 24 person-months)

To support the design and implementation of the Government's portfolio management database, project component 3 supporting debt management will finance an IT system that will allow MEF to record and provide project-specific information, including disbursement and contract awards of both development partner- and Government-funded projects. The functional specifications of the system will be designed, including specifying hardware and software system requirements, for commissioning and implementation by a team of IT national experts working under the supervision of international consultants. Information and communication technology (IT), related equipment and two vehicles (for NAA and the Department of Internal Audit) will be procured in accordance with Guidelines on the Use of Consultants by Asian Development Bank and its Borrowers.

Refer to the Terms of Reference for detailed information regarding the nature of services to be provided.

Deadline for Submission of EOI:

  1. 6 February 2009 - for Individual consultants under Components 2 & 4
  2. 6 February 2009 - for Consulting firms under Components 1 & 3

Address for Submitting EOI:

Mr. Prasanna Kumar Jena
Governance Specialist
Asian Development Bank
6 ADB Ave., Mandaluyong City
Philippines
Tel No.: +632 632 6657/6424
Fax: +632 636 2331
Email: pjena@adb.org