Maldives: Economic Recovery Program (formerly Public Resource Management Reform Program)

Sovereign Project | 39658-013

Summary

ADB is supporting the Maldives government's reforms to restore its ailing economy to sustainable growth. The program will help the government diversify the tax base to boost revenue collection, better manage public spending by aligning it with available resources, privatize state-owned enterprises, strengthen internal audit, and improve debt management.

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Project Name Economic Recovery Program (formerly Public Resource Management Reform Program)
Project Number 39658-013
Country Maldives
Project Status Closed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan 2597-MLD: Economic Recovery Program (formerly Public Resource Management Reform Program)
Asian Development Fund US$ 35.00 million
Loan 2598-MLD: Economic Recovery Program (Capacity Development for Economic Recovery Project) - TA Loan
Asian Development Fund US$ 1.50 million
TA 7424-MLD: Institutional Strengthening for Economic Management
Technical Assistance Special Fund US$ 3.00 million
TA 7424-MLD: Institutional Strengthening for Economic Management (Supplementary)
Technical Assistance Special Fund US$ 225,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change
Sector / Subsector

Public sector management - Economic affairs management - Public administration - Public expenditure and fiscal management - Reforms of state owned enterprises

Gender Equity and Mainstreaming No gender elements
Description

The Program will identify and support fiscal correction measures over the short term while developing systems and procedures to augment and diversify the revenue base and strengthen expenditure management over the medium term in order to set public finances on a sustainable path.

The Program will (i) strengthen the fiscal management institutions, (ii) enhance and diversify the revenue base of the economy, (iii) contain expenditure pressures on the budget while strengthening the functions of government, (iv) reduce government involvement in the economy, and (v) establish market-based instruments to improve treasury management.

Project Rationale and Linkage to Country/Regional Strategy

The proposed reforms under the Program will support the Government's efforts to strengthen economic management and reduce the potentially destabilizing effects of the current fiscal stance.

The reforms will also support the restructuring, privatizing, and even disposing of various SOEs and other measures that will set the stage for developing a more level playing field that can foster greater private sector involvement in the economy and reduce further pressures on the budget from transfers and subsidies to SOEs.

Impact Support the Government's development objectives by (i) reducing economic imbalances and restoring the economy to a sustainable growth trajectory over the medium term, (ii) assisting the Government's structural reforms; and (iii) reducing the country's vulnerability to external shocks.
Project Outcome
Description of Outcome Creation of greater fiscal space in the budget, and financial flexibility through a more diversified tax base and rationalized expenditure, better debt management, and more efficient privatization of SOEs as well as deepening the financial market with the issuance of Treasury bills and bonds
Progress Toward Outcome

Loan 2597 and 2598 were closed on 11 and 18 December 2012 respectively.

TA 7424-MLD is ongoing.

Implementation Progress
Description of Project Outputs

1. Strengthening fiscal policy and bolstering budget formulation and implementation.

2. Implementing Revenue, Expenditure and Debt Management Measures to Strengthen the Fiscal Policy

3. Strengthening the Mechanisms for Financing the Budget

4. Facilitating Privatization of SOEs

5. Strengthening Internal Audit Operations

Status of Implementation Progress (Outputs, Activities, and Issues)

Loan 2597 and 2598 were closed on 11 and 18 December 2012 respectively.

TA 7424-MLD is ongoing.

Geographical Location Maldives
Safeguard Categories
Environment C
Involuntary Resettlement
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design tbd
During Project Implementation tbd
Business Opportunities
Consulting Services L2598 (TA loan) will require under Component 1, a consulting firm consisting of 7 experts (5 international, 2 national), for 23 person-months and three individual experts (international) for 12 person months. TA 7424 (TA grant) will require three consulting firms (one with 5 international experts, another with two international experts and the last one with two international experts) for 60 person-months and three individual (international) experts for 21 person-months. The increase of $225,000 in TA 7424 (TA Grant) will be used to recruit 4 international experts for 9 person months and 1 national expert for 4 person months. Consultants to be financed will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). Consultancy contract packages using the quality- and cost-based selection method and consultants qualifications selection will be used to recruit consultants, based on technical proposals, for specific subcomponents under the TA.
Procurement Procurement of any goods or services shall be carried out in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). Goods such as equipment or training material will be purchased using shopping procedures.
Responsible ADB Officer Syed Ali-Mumtaz H. Shah
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Ministry of Finance and TreasuryMs. Aminath Malikaminath.ali@finance.gov.mvAmeenee Magu, Male 20379, Republic of Maldives
Timetable
Concept Clearance 14 Oct 2005
Fact Finding 15 May 2006 to 29 May 2006
MRM 28 Jun 2006
Approval 09 Dec 2009
Last Review Mission -
PDS Creation Date 07 Apr 2010
Last PDS Update 16 Sep 2014

Loan 2597-MLD

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Dec 2009 18 Mar 2010 08 Jun 2010 31 Dec 2012 - 11 Dec 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 119.60 Cumulative Contract Awards
ADB 35.00 09 Dec 2009 33.06 0.00 100%
Counterpart 84.60 Cumulative Disbursements
Cofinancing 0.00 09 Dec 2009 33.06 0.00 100%

Loan 2598-MLD

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Dec 2009 18 Mar 2010 08 Jun 2010 31 Dec 2012 - 18 Dec 2012
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 1.80 Cumulative Contract Awards
ADB 1.50 09 Dec 2009 0.00 0.00 0%
Counterpart 0.30 Cumulative Disbursements
Cofinancing 0.00 09 Dec 2009 0.00 0.00 0%

TA 7424-MLD

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
09 Dec 2009 03 Mar 2010 03 Mar 2010 31 Dec 2012 30 Jun 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
3,225,000.00 0.00 0.00 0.00 0.00 0.00 3,225,000.00 09 Dec 2009 3,165,215.17
Title Document Type Document Date
Institutional Strengthening for Economic Management: Technical Assistance Completion Report TA Completion Reports Jun 2015
Institutional Strengthening for Economic Management - Office of Programmes and Projects' Project Database Development: Consultant's Report Consultants' Reports Jun 2014
Institutional Strengthening for Economic Management - SAP AIS (Audit Information System) Implementation for the Ministry of Finance and Treasury: Consultant's Final Report Consultants' Reports Jun 2014
Institutional Strengthening for Economic Management - Building Stronger Foundations (PWC Final Report): Consultant's Report Consultants' Reports Jun 2014
Institutional Strengthening for Economic Management - Enhancement of Ministry of Finance and Treasury's Accounting and Reporting Systems: Consultant's Final Report Consultants' Reports Feb 2014
Economic Recovery Program Project/Program Completion Reports Sep 2013
Institutional Strengthening for Economic Management - Support to Maldives Inland Revenue Authority: Consultant's Final Report Consultants' Reports Jun 2013
Institutional Strengthening for Economic Management - Office of Programmes and Projects Capacity Building on Portfolio, Programme, Project Management (PPPM): Consultant's Final Report Consultants' Reports Feb 2013
Institutional Strengthening for Economic Management - Ministry of Finance and Treasury Internal Audit Project (August-October 2012): Consultant's Final Report Consultants' Reports Oct 2012
Economic Recovery Program (Second Tranche) Progress Reports on Tranche Releases Sep 2012
Loan Agreement (Special Operations) for Economic Recovery Program between Republic of Maldives and Asian Development Bank dated 18 March 2010 Loan Agreement (Special Operations) Mar 2010
Loan Agreement (Special Operations) for Capacity Development for Economic Recovery Project between Republic of Maldives and Asian Development Bank dated 18 March 2010 Loan Agreement (Special Operations) Mar 2010
Economic Recovery Program Reports and Recommendations of the President Nov 2009
Proposed Program Loan Procurement Plans Nov 2009
Public Resource Management Reform Program Design and Monitoring Frameworks Jun 2006

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation
Title Document Type Document Date
Maldives: Economic Recovery Program Validations of Project Completion Reports Nov 2014

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