Bhutan: Strengthening Public Financial Management Project

Sovereign Project | 41152-012

Summary

The TA will support the Government's initiative to strengthen the institutional capacity of public financial institutions thereby, improving their ability to fulfill their statutory mandates. The impact of the TA is enhancement of budget, treasury, and audit management to support fiscal sustainability and financial management reporting as enumerated under the PFA and the Audit Act. The goal of the TA is to improve effectiveness of budget, treasury, and audit operations to support macroeconomic stability, which contributes to sustainable growth and poverty reduction.

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Project Name Strengthening Public Financial Management Project
Project Number 41152-012
Country Bhutan
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7032-BHU: Strengthening Public Financial Management Project
Technical Assistance Special Fund US$ 750,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Public sector management - Public expenditure and fiscal management

Gender Equity and Mainstreaming No gender elements
Description The TA will support the Government's initiative to strengthen the institutional capacity of public financial institutions thereby, improving their ability to fulfill their statutory mandates. The impact of the TA is enhancement of budget, treasury, and audit management to support fiscal sustainability and financial management reporting as enumerated under the PFA and the Audit Act. The goal of the TA is to improve effectiveness of budget, treasury, and audit operations to support macroeconomic stability, which contributes to sustainable growth and poverty reduction.
Project Rationale and Linkage to Country/Regional Strategy Vision 2020 aims to ensure the country's future independence, sovereignty, and security through good governance and rapid economic growth. To support Vision 2020's implementation, the Government adopted the Ninth Five-Year Plan (FYP) for fiscal year (FY) 2002-2007, which advocates the adoption of various rules and regulations to encourage economic growth. ADB's Country Strategy and Program (2006-2010) for Bhutan includes two strategic thrusts: (i) lending assistance focusing on transport, power, urban development, and private sector development; and (ii) nonlending assistance for capacity building for sustainable development, including enhancing debt and public resource management capacity. Strengthening RAA has also been mentioned as a key area of required capacity development. The TA is consistent with the second thrust of the Country Strategy and Program (2006-2010) for Bhutan and the Government's Vision 2020.
Impact Enhancement of public financial institutions' capacity, leading to greater transparency and accountability of public accounts, more effective use of public spending, and ultimately fiscal savings
Project Outcome
Description of Outcome Stronger budget, treasury, and audit management in place to support fiscal sustainability principles and financial management reporting requirements as enumerated under the newly-approved PFA
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Revised financial rules and regulations (FRRs) on Budget Management

2. Effective design and use of multi-year rolling budget framework

3. Effective intergovernmental fiscal transfers framework in place

4. Consolidation of treasury accounts

5. Effective financial management accounting and reporting in place

6. Develop cash management operations framework

7. Training curriculum developed in all aspects of RAA operations, specifically in performance, environment, IT, and financial audits

8. IT systems and processes to improve in-house training capacity of RAA established

9. Established in-house training system for continuous capacity development and staff skill enhancement

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Bhutan
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services Consulting services required under the TA include 11 person-months of international and 46 person-months of national consultants. 40 person-months of the 46 in total have been identified. Six person-months will be used for short-term expertise on a needs basis. International and national consultants will be mobilized intermittently over a 2-year period. A consulting firm will be selected using the quality and cost-based selection method. The consultants will be recruited in accordance with ADB's Guidelines on the Use of Consultants (2007, as amended from time to time).
Procurement Equipment will be procured in accordance with ADB's Procurement Guidelines (2007, as amended from time to time). At the end of the TA, all equipment will be retained by user agencies. Procurement of network connections and software will be prioritized under the TA, and residual funds will be used for procurement of computers and printers.
Responsible ADB Officer Hiranya Mukhopadhyay
Responsible ADB Department South Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SARD
Executing Agencies
Ministry of Finance Tshewang Norbutnorbu@mof.gov.btMinistry of Finance
Timetable
Concept Clearance 21 Nov 2007
Fact Finding 01 Nov 2007 to 09 Nov 2007
MRM -
Approval 14 Dec 2007
Last Review Mission -
PDS Creation Date 19 Dec 2007
Last PDS Update 03 Nov 2010

TA 7032-BHU

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
14 Dec 2007 08 Jan 2008 08 Jan 2008 31 Jan 2010 31 Dec 2010 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
750,000.00 0.00 110,000.00 0.00 0.00 0.00 860,000.00 14 Dec 2007 707,524.76
Title Document Type Document Date
Strengthening Public Financial Management Project TA Completion Reports Jul 2012
Strengthening Public Financial Management Technical Assistance Reports Aug 2008

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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