|During Project Design
The following outputs are envisaged: (i) regular monitoring and reporting on progress of the NSPF, (ii) use of a GDP and revenue forecasting model, (iii) presentation to decision makers of robust and timely economic policy analysis and proposals, (iv) an MTBF that is strategically aligned and used, and (v) improved policy coordination.
Key activities for output 1 include (i) establishing a monitoring and reporting process for the NSPF, and (ii) capacity development in the monitoring of corporate plan progress and the alignment of corporate plans with resource allocations. For output 2, key activities will include (i) evaluating and customizing a GDP and revenue-forecasting model; (ii) establishing the model in the Policy and Planning Division, the NRBT, and Statistics Department; (iii) developing supporting manuals; and (iv) conducting relevant training and capacity building. For output 3, activities will include (i) research on topical issues, in particular domestic and global trends and developments that are likely to impact on the Tongan economy; and (ii) preparation of relevant and timely policy papers to advise on the formulation of appropriate policy responses to mitigate the impacts of domestic and external shocks. For output 4, the activities include (i) developing a strategically aligned MTBF, and (ii) establishing a process for updating and using the MTBF. For output 5, the activities include (i) providing advice to the Prime Minister, (ii) providing support to ERC, and (iii) liaising between the ERC and ministries and departments.
As part of its constitutional reforms, Tonga expects to hold its first democratic elections at the end of 2010. A potential risk is that a new government, with limited parliamentary and ministerial experience, may emphasize different development priorities, raising uncertainties with respect to project implementation. One mitigating factor is the strengthening of the role of the chief executive officers and senior management officials in providing relevant advice to incoming political leaders, and having the capacity to ensure implementation continuity. Corporate planning activities undertaken to implement the NSPF will strengthen the capacity of chief executive officers, and will be complemented by ongoing public service reforms. ADB should continue to engage a wide range of key stakeholders in programming discussions and project and TA processing to ensure that a minimum level of awareness is maintained, and allow for continued support during post-election implementation.
There is a need for continuing coordination through regular dialogue and information sharing with other key development partners regarding economic and public sector reforms (Supplementary Appendix A), and with ADB's regional TA for Pacific Economic Management (footnote 4). ADB recently established a joint country focal office with the World Bank Group in Tonga, and a Tongan national has been selected as the country focal officer. This will strengthen collaboration between ADB and the World Bank, and also provide an on-the-ground presence for both institutions for ease of coordination with the government and other development partners.
|During Project Implementation
MFNP will be the executing agency for the capacity development TA and will ensure that TA activities are closely coordinated with the implementing agencies .e.g., the Budget and Policy and Planning divisions, PMO (for forecasting and policy coordination), NRBT (for economic analysis, management and forecasting), Statistics Department (for forecasting), and line ministries (for corporate planning) as well as other key stakeholders. The ERC will be the steering committee for the capacity development TA, while the recently revived Macroeconomic Technical Committee will oversee the implementation of support from various development partners, and monitor progress by the implementing agencies. The Macroeconomic Coordinating Committee will be chaired by the secretary for finance and includes representatives from the key central agencies such as the PMO, NRBT, and Statistics Department. The Macroeconomic Technical Committee will also act as the conduit between the ERC (which provides policy direction), the Project and Aid Coordinating Committee (which conducts investment project appraisals), and line ministries.
The TA will be implemented over a period of 2 years, from January 2010 to December 2011. ADB will engage international, regional, and national consultants with expertise in planning, economic policy, economic modeling and budget analysis through a firm using the quality-and cost-based selection method, after seeking simplified technical proposals. An individual consultant will be selected in addition to a firm. The consultants will be engaged according to ADB's Guidelines on the Use of Consultants (2007, as amended from time to time). The TA will require about 35 person-months of consulting services comprising about 15 person-months of international, 8 person-months of international or regional, and 12 person-months of regional or national consultant services to carry out the activities as defined in the terms of reference (Appendix 3). The experts will be supplemented by ADB's regional TA resources, including the ADB/World Bank Group country focal officer and experts under ADB's TA for Pacific Economic Management, as required. The proceeds of the capacity development TA will be disbursed in line with ADB's Technical Assistance Disbursement Handbook.
The team leader will produce a concise inception report outlining the work program and milestones for the duration of the capacity development TA, and a final report summarizing the achievements, issues, lessons learned, and next steps. Throughout the capacity development TA, the team leader will submit (by e-mail) brief monthly progress reports summarizing TA activities, progress, issues, and constraints. Team members will produce inputs (reports) on their respective activities for the team leader's progress and final reports. The team leader's final report will be submitted in draft form at least 5 weeks prior to the end of the assignment, and the final report within 2 weeks of receipt of comments by the government and ADB.