Philippines: Harmonization and Development Effectiveness

Sovereign Project | 41060-012

Summary

Compliance of the Government of the Philippines with the Paris Declaration commitments was monitored by OECD and evaluated through a country study. The monitoring process has revealed areas of substantial progress. The Government of the Philippines has so far achieved the 2010 targets for three indicators and encouraging progress was made in five indicators. Further progress is needed in terms of aid reported on budget (indicator 3), use of country public financial management systems (indicator 5a), reducing the number of parallel project implementation units (indicator 6), use of program-based approaches (indicator 9), coordinated missions (indicator 10a) and coordinated country analytical work (indicator 10b). This will require efforts not only by the Government of the Philippines, but also by development partners. It should be noted that several of the reform areas included in Harmonization Agenda and Action Plan (i.e.

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Project Name Harmonization and Development Effectiveness
Project Number 41060-012
Country Philippines
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7190-PHI: Harmonization and Development Effectiveness
Technical Assistance Special Fund US$ 900,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Public sector management - Economic affairs management
Gender Equity and Mainstreaming No gender elements
Description Compliance of the Government of the Philippines with the Paris Declaration commitments was monitored by OECD and evaluated through a country study. The monitoring process has revealed areas of substantial progress. The Government of the Philippines has so far achieved the 2010 targets for three indicators and encouraging progress was made in five indicators. Further progress is needed in terms of aid reported on budget (indicator 3), use of country public financial management systems (indicator 5a), reducing the number of parallel project implementation units (indicator 6), use of program-based approaches (indicator 9), coordinated missions (indicator 10a) and coordinated country analytical work (indicator 10b). This will require efforts not only by the Government of the Philippines, but also by development partners. It should be noted that several of the reform areas included in Harmonization Agenda and Action Plan (i.e. in the areas of managing for development results) are more ambitious than the Paris Declaration itself and progress in these areas is not fully captured under the Paris Declaration monitoring system.
Project Rationale and Linkage to Country/Regional Strategy The Government of the Philippines has sought advisory technical assistance (TA) from the Asian Development Bank (ADB) in continuing support of the country's implementation of the Paris Declaration for Development Effectiveness and the Accra Agenda for Action, international commitments to accelerate progress toward development effectiveness. The TA is included in the country operations business plan for 2007-2008 and is the second in a series of TAs to support development effectiveness in the Philippines.
Impact Accelerated progress on enhancing efficiency and effectiveness of development.
Project Outcome
Description of Outcome More coordinated and accountable management of the implementation of Paris Declaration commitments and other measures intended to strengthen development effectiveness in the Philippines
Progress Toward Outcome Commitments are managed at Cabinet level with strong emphasis on strengthening country systems for public financial management and procurement. Results-based management and mutual accountability are also key priority areas.
Implementation Progress
Description of Project Outputs

Stronger ownership and leadership demonstrated by the Harmonization Committee, which steers and coordinates the activities of government agencies, development partners, and civil society organizations more efficiently and sustainably

An organizational setup for the Harmonization Committee that will enable it to assume its steering and coordination functions sustainably for greater development effectiveness

Procedures for supporting advocacy, mutual accountability, knowledge management, capacity development, and monitoring and evaluation functions, developed and tested selectively

Better integrated results-based sector planning and budgeting systems, developed and initially tested in the rural development sector

Better harmonized and better-aligned financial reporting procedures

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

Output 1:

Draft recommendation prepared on promoting a common Agenda on Aid and Development Effectiveness and operational linkage of Philippine Harmonization Committee (PHC) with Working Groups/Working Sub-Groups of Philippine Development Forum to achieve shared outcomes indicated in the Agenda.

Draft Administrative Order, integrating Post Busan Implementation into the mandate of the PHC, was prepared in Dec 2011 per instruction of the PHC-Technical Working Group as a possible option in formalizing the organization of the PHC.

Output 2:

Drafted the Assessment and Inception Report on Harmonization and Development Effectiveness in October 2011, which provided the emerging priority areas in support of public sector and governance based on the PDP 2011-2016, CPS 2011-2016, and the Philippine Action Plan on Open Government Partnership, with reference to the common Agenda on Aid and Management Effectiveness.

Output 3:

Undertook Official Development Assistance Portfolio Cost Overrun Study (with NEDA), which includes the development of effective systems and procedures for reporting cost overruns and devising appropriate measures to institutionalize these systems and procedures.

Finalized Public-Private Partnership business plan and recommendation of corporate structure of the dedicated Philippine Infrastructure Financing Facility (PIFF) in April 2011 (with PPP Center in NEDA). The business plan underwent peer review by KPMG Australia, which reconfirmed its validity. The intended stakeholders of PIFF opted to defer operationalization of PIFF.

Supported the Infrastructure Summit Conference on PPP during the ADB Annual Meeting in 2011 (audio-video presentations on a number of PPP projects in the Philippines as well as interview with Cabinet members and other stakeholders were developed).

Supported the participation of three government officials from the Department of Budget and Management and the Office of the President in a 5-day training held in Kunming, PRC on Results-Based Planning, Budgeting, and Evaluation.

Workshop on Development of Sustainable Mechanism for CSO Involvement in Procurement in the Philippines was conducted in June 2012 and was attended by CSO representatives, development partners, government (Government Procurement Policy Board-Technical Support Office and Department of Education), and business sector.

Supported the Review of CSO Engagement for Enhancing Transparency of the Processes in Procurement Undertaken by the Government of the Philippines, which involved an organizational assessment of the involvement of CSOs in the public procurement system in the Philippines and evaluation of the status of CSO participation in public procurement as compared to the provisions of the GPRA.

Supported Department of Budget and Management (DBM) to implement and finalize the instructions and goals of National Budget Circular 532 (NBC 532). This entailed support to the following tasks: (i) restructuring of agencies' major final outputs (MFOs) so as to accurately reflect the agencies' legal mandates; (ii) revising the definitional structure and specification of performance indicators (PIs) and Major Final Outputs (MFOs) to reflect the guidance contained in the DBM publication, Organizational Performance Indicator Framework (OPIF) Reference Guide 2012 ; (iii) aligning agencies' programs and activities with the identified MFOs so that the General Appropriations Act (GAA) could incorporate MFOs; and (iv) coordinating and harmonizing activities with the introduction of the new unified account code structure (UACS). DBM was able to carry out and finalize the OPIF review of 20 Departments with 113 attached agencies; 32 Other Executive Offices; 112 State Universities and Colleges; the Office of the Pres., Office of Vice Pres., Presidential Communication Operations Office; 6 Constitutional Bodies; Judiciary; Congress; and Autonomous Region in Muslim Mindanao. To engender sustainability of these reforms, support was given to the development of a PI register, specifying details on how each PI of OPIF was to be calculated and what, how and where the data would be obtained.

Supported DBM in piloting the introduction of performance-based budgeting (using OPIF) into the Government-Owned and Controlled Corporations (GOCCs). As DBM is normally not in charge for all GOCCs, the pilots were done for agencies that do not fall under the supervision of the Governance Committee of GOCCs, in particular, specialty hospitals, export processing zones, local water districts, and research institutes. Pilots were made on the Light Rail Transit Authority; Philippine National Railways; National Development Company; and Home Guaranty Corporation.

Supported the 42nd Annual Governing Board Meeting of the Asia Organization of Supreme Audit Institutions in February 2013, which aimed to update member countries on progress in improving audit systems and practices among member countries.

Supported the conduct of ADB-AusAid- JICA-World Bank retreat with the goal of improving the coordination among development partners by more closely harmonizing their programs among them and aligning them with Government priorities. The retreat provided a comprehensive discussion platform on selected high priority development issues including PPP, climate change and disaster risk management, and Metro Manila.

Output 4:

Initial Stocktaking Report prepared in April 2009 and MfDR orientation presented to Senior Officials in January 2010.

An Integrated Results Framework for rural development was agreed upon with senior officials of Departments of Agriculture, Agrarian Reform, Environment and Natural Resources and NEDA and DBM in May 2010.

Five workshops were conducted during the period January-April 2010 on the preparation of Integrated Results Framework (IRF) for rural development (agriculture, agrarian reform, and environment and natural resources (AARNR). Outcome indicators of the IRF for AARNR were agreed n coordination with DA, DAR, DENR, NEDA, and DBM.

Supported the conduct of Managing for Development Results (MfDR) Capacity Assessments for rural development agencies (Departments of Agriculture, Agrarian Reform, Environment and Natural Resources) during May-September 2010 to provide the basis for increasing organizational capacity of these agencies with a view to improve the way their organizations are performing with respect to the results that they are supposed to achieve. The assessment involved workshops and focused on diagnoses of performance issues as they are related to different aspects of the organization. A Preliminary Report on Findings for each agency was completed in November 2010.

Output 5:

Output was not pursued to avoid overlap with AusAID support of the Government Integrated Financial Management Information System (GIFMIS).

Geographical Location Metro Manila
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The concept paper draws on consultations with the previous project officer and consultants of the Harmonization and Managing for Development Results TA as well as on discussions with members of the HC. Initial discussions with civil society organizations involved in development effectiveness issues (i.e. IBON) have also been conducted.
During Project Implementation
Business Opportunities
Consulting Services

OUTLINE TERMS OF REFERENCE FOR CONSULTANTS

1. The technical assistance (TA) will require 10 person-months of international and 65 person-months of national consultants mainly in results-based management, organizational and institutional capacity development, financial management and accounting, and knowledge management. All consultants will report to the Asian Development Bank (ADB) project officer and work closely with the Harmonization Committee. More detailed terms of reference (TOR) for the consultants will be prepared during the implementation of the TA. A certain degree of flexibility in the use of consultants will be required to accommodate Harmonization Committee requests during TA implementation

A. Policy Adviser (Organizational Development) and Lead Consultant (international, 4 person-months, intermittent, February 2009-December 2011)

2. The organizational development consultant will have a degree in a social science, political science, economics, or public administration and at least 15 years of experience in designing and implementing complex organizational reforms involving a network of stakeholders. The position requires strong analytical, facilitation, and intercultural communication skills and long-term experience in Asian countries. Experience in the Philippines and previous involvement in Paris Declaration-related efforts would be an asset.

3. The consultant will

(i) be responsible for the overall management of the TA, including (a) preparing an inception report, a midterm review report, and a final report; (b) working closely with senior government officials and working-level staff of the Harmonization Committee, oversight and sector agencies, and other development partners and advising them on the development and implementation of the framework and action plan for development effectiveness; (c) together with the project officer, guiding and coordinating the work of all consultants employed under the TA; (d) coordinating closely with ADB and other external funding agency projects concerned with development effectiveness-related reforms; (e) preparing dissemination materials, in particular for ADB and Harmonization Committee websites, brochures, and presentation materials; and (f) agreeing with the Government on the use of the study budget and developing TOR for a consultant to prepare the studies;

(ii) together with Harmonization Committee members, the technical secretariat, and development partners, identify the range of functions that should be assumed by the Harmonization Committee, i.e., advocacy, mutual accountability, knowledge management, capacity development, and monitoring and evaluation functions;

(iii) assess the capacity of the Harmonization Committee organization and network to carry out the committee's current functions with regard to strengthening development effectiveness and meeting international commitments;

(iv) present options for strengthening the Harmonization Committee to the members of the committee and follow up on comments received, as needed;

(v) develop a realistic organizational setup and work plan for the Harmonization Committee and the technical secretariat in view of the existing capacity and roles of oversight agencies;

(vi) develop procedures for advocacy, knowledge management, mutual accountability, capacity development, and monitoring and evaluation and conduct at least eight initiatives to pilot-test these procedures;

(vii) support the Harmonization Committee and the technical secretariat in the development and implementation of specific work plans, including the preparation of detailed consultant TOR for consultants C, D, E, F, and H; and

(viii) support the National Economic and Development Authority (NEDA), the Department of Budget and Management (DBM), and the sector agencies in the preparation of the capacity development components of results-based readiness assessments and capacity development action plans in rural development agencies.

B. Policy Adviser (Results-Based Management) (international, 3 person-months, intermittent, February 2009-December 2011)

4. The consultant will have a degree in economics, public administration, or business administration and proven knowledge of results-based management and its application in the sectors. He or she will have at least 15 years of experience supporting the institutionalization of results-based management approaches in ADB's developing member countries. The position requires strong facilitation and intercultural communication skills and long experience in the developing member countries. Experience in the Philippines and previous involvement in Paris Declaration-related activities would be an asset.

5. The consultant will

(i) assist the Harmonization Committee in developing a results-based development effectiveness framework and action plan for implementing international commitments and other priorities for development effectiveness, including identifying other priorities and assessing government ownership;

(ii) support the Harmonization Committee in the conduct of regular progress reviews and annual workshops for government agencies and development partners to discuss progress and next steps;

(iii) review the monitoring requirements under the Paris Declaration monitoring system, assess the strengths and weaknesses of the system, and propose to the Harmonization Committee an approach to engaging with OECD to strengthen the system and to ensure that progress on implementation of the Paris Declaration is well documented and understood by external parties;

(iv) review the work plans of Harmonization Committee subsidiaries and strengthen their focus on results;

(v) support the development of a results-based sector road map for the Department of Agrarian Reform (DAR), the Department of Agriculture, and the Department of Environment and Natural Resources (DENR);

(vi) assess DBM and NEDA results-based planning and budgeting systems and their application in the rural development sector, drawing on existing reports and discussions with DBM and NEDA agriculture staff and sector staff, and relevant development partners and working groups;

(vii) develop alternative proposals for addressing the weaknesses in the current system and present the proposals to decision makers in DBM and NEDA, including a decision to adopt an agency or a sector approach;

(viii) pilot-test the integrated results-based planning and budgeting system in close cooperation with relevant development partners; and

(ix) agree with the Government and ADB on the use of the study budget for results based management and monitoring, and recommend the TOR and the hiring of researchers for the studies and have the recommendations approved by the ADB project officer to avoid conflicts of interest.

C. Public Financial Management and Accounting Specialist (international, 3 person months, intermittent, February 2009 and December 2011)

6. The consultant will be a public accountant with at least 15 years of experience supporting the institutionalization of public financial management and accounting in developing countries. The position requires strong facilitation and intercultural communication skills and long experience in ADB's developing member countries. Experience in the Philippines and previous involvement in Paris Declaration-related activities would be an asset.

7. The consultant will

(i) assess the degree of integration of the Commission on Audit's (COA's) Electronic New Government Accounting System (e-NGAS) and DBM's eBudget system on the basis of existing reports (e.g, the diagnostic study prepared by the United States Trade and Development Agency);

(ii) assess the degree of alignment between the e-NGAS and eBudget systems and the operations performance indicator system;

(iii) develop and pilot-test an approach to integrating the systems;

(iv) support other initiatives to strengthen country systems for financial management and accounting on request; and

(v) assess the use of financial reporting system in the rural development agencies and suggest improvements in the system to make it better aligned with planning and budgeting systems.

D. Capacity Development and Knowledge Management Specialist (national, 24 person months)

8. The consultant will have a master's degree in economics, public administration, or organizational development and proven knowledge of public sector management and institutional and organizational assessments.

9. The consultant will

(i) provide administrative and management support to the Harmonization Committee, particularly to Department of Finance (DOF) officers engaged in technical secretariat functions and international consultants working on the TA;

(ii) support the coordination of efforts of government agencies and development partners with regard to development effectiveness, through the preparation of workshops, background papers, and meetings; and

(iii) maintain the website of the Harmonization Committee.

10. This consultancy will be for the entire project implementation period. The first 24 months will be financed by ADB; the remaining months will be financed out of DOF's personnel budget. Reporting arrangements will follow the financing source.

E. Results-Based Management Specialist (national, 24 person-months)

11. The consultant will have a master's degree in economics, public administration, or business administration and proven knowledge of results-based development planning and monitoring.

12. The consultant will

(i) provide administrative and management support to the Harmonization Committee, particularly to NEDA officers engaged in technical secretariat functions; and

(ii) support the coordination of efforts of government agencies and development partners with regard to development effectiveness, through the preparation of workshops, background papers, and meetings.

13. This consultancy will be for the entire project implementation period. The first 24 months will be financed by ADB; the remaining months will be financed out of NEDA's personnel budget. Reporting arrangements will follow the financing source.

F. Knowledge Management and Website Development Specialist (national, 4 person months, intermittent, February 2009-December 2011)

14. The consultant will have a master's degree in communication and at least 5 years of experience in website development.

15. The consultant will

(i) discuss information needs with potential users of a development effectiveness website;

(ii) review the websites of NEDA and DOF and identify proposals for potential site location in coordination with the Harmonization Committee and the lead consultant;

(iii) develop a draft website in close coordination with the user division, and incorporate changes requested by the Harmonization Committee;

(iv) train staff responsible for maintaining the website; and

(v) draft summary information and good practice notes for posting on the Web in coordination with the user division.

G. Results-Based Management Specialist (national, 8 person-months, intermittent, February 2009-December 2011)

16. The consultant will have a master's degree in public administration, business administration, economics, or organizational development and at least 10 years of experience working with DAR, the Department of Agriculture, or DENR. Experience in the agriculture sector will be required.

17. The consultant will

(i) support the conduct an assessment of existing DBM and NEDA results-based planning, budgeting, and financial reporting systems and their application in the rural development sector, drawing on existing reports and discussions with DBM and NEDA agriculture staff and sector staff, and relevant development partners and working groups;

(ii) develop alternative proposals for addressing the weaknesses in the current system and present the proposals to decision makers in DBM, NEDA, and COA, including a decision to adopt an agency or a sector approach;

(iii) prepare, facilitate, and document workshops as requested;

(iv) support the pilot-testing of the integrated results-based planning and budgeting system in close cooperation with relevant development partners;

(v) coordinate with civil society organizations involved in monitoring rural development projects; and

(vi) support the development of a results-based convergence sector road map as well as individual sector road maps for DAR, the Department of Agriculture, and DENR.

H. Financial Management and Audit Specialist (national, 5 person-months, intermittent, February 2009-December 2011)

18. The consultant will be a public accountant with at least 15 years of experience supporting the institutionalization of public financial management and accounting in the Philippines.

19. The consultant will

(i) coordinate with COA, DBM, and relevant consultants under ADB and other relevant projects;

(ii) support the assessment of the degree of integration of COA's e-NGAS and DBM's eBudget system based on existing reports (e.g., the diagnostic study prepared by the United States Trade and Development Agency);

(iii) support the assessment of the degree of alignment of the e-NGAS and eBudget systems with the operations performance indicator system;

(iv) develop and pilot-test an approach to integrating the systems, preferably in the rural development sector; and

(v) support other initiatives to strengthen country systems for financial management and accounting on request.

Responsible ADB Officer Claudia Buentjen
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Philippines Country Office
Executing Agencies
National Economic & Development Authority7th Floor, NEDA Building
Amber Avenue, Pasig City
Metro Manila, Philippines
Department of Budget and ManagementGround Floor, Espinosa Building
Solano Street
San Miguel, Manila
Commission on AuditCommonwealth Avenue,
Quezon City
Department of FinanceDOF Building
Bangko Sentral ng Pilipinas Complex
Roxas Blvd., Manila, Philippines
Timetable
Concept Clearance 09 Sep 2008
Fact Finding 10 Sep 2008 to 03 Oct 2008
MRM -
Approval 08 Dec 2008
Last Review Mission -
PDS Creation Date 15 Apr 2009
Last PDS Update 10 Apr 2013

TA 7190-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
08 Dec 2008 05 Jan 2009 05 Jan 2009 31 Dec 2011 30 Apr 2013 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
900,000.00 0.00 100,000.00 0.00 0.00 0.00 1,000,000.00 08 Dec 2008 853,890.72

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Workshop on Updating Results Frameworks for National Agencies

A workshop under Technical Assistance 7190: Harmonization and Development Effectiveness was held in April 2013 to draw lessons learned from the ADB-supported process of updating national government agency results frameworks for 20 departments with its 113 attached agencies, 32 government executive offices, 112 state universities and colleges (SUCs), and 6 constitutional bodies. The initiative was led by the Department of Budget and Management of the Philippines to meet the requirements of National Budget Circular 532 of 2011. It is expected to contribute to a more transparent and results-based budget for 2014.

Speeches and presentations