43396-014: Increasing Competitiveness for Inclusive Growth Program (Subprogram 2) | Asian Development Bank

Philippines: Increasing Competitiveness for Inclusive Growth Program (Subprogram 2)

Sovereign (Public) Project | 43396-014 Status: Closed

The program supports the government's key reform priorities aimed at employment generation by increasing competitiveness in the economy with an inclusive approach through the labor market. The structural reform priorities include efforts to enhance the business climate by promoting competition policy, regulatory efficiency, competitive logistics, and private sector participation in infrastructure projects through public private partnerships (PPPs). The program also supports the government in promoting competitive labor markets by piloting a youth employment program to empower young people to find decent jobs (known as JobStart Philippines) and a tourism-industry-led skills and services development program, and through longer-term labor policy reforms.

Project Details

Project Officer
Hattel, Kelly L. Southeast Asia Department Request for information
Country
  • Philippines
Modality
  • Loan
Sector
  • Industry and trade
 
Project Name Increasing Competitiveness for Inclusive Growth Program (Subprogram 2)
Project Number 43396-014
Country Philippines
Project Status Closed
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3233-PHI: Increasing Competitiveness for Inclusive Growth (Subprogram 2)
Ordinary capital resources US$ 350.00 million
Strategic Agendas Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Industry and trade / Industry and trade sector development

Gender Equity and Mainstreaming Effective gender mainstreaming
Description The program supports the government's key reform priorities aimed at employment generation by increasing competitiveness in the economy with an inclusive approach through the labor market. The structural reform priorities include efforts to enhance the business climate by promoting competition policy, regulatory efficiency, competitive logistics, and private sector participation in infrastructure projects through public private partnerships (PPPs). The program also supports the government in promoting competitive labor markets by piloting a youth employment program to empower young people to find decent jobs (known as JobStart Philippines) and a tourism-industry-led skills and services development program, and through longer-term labor policy reforms.
Project Rationale and Linkage to Country/Regional Strategy Subprogram 2 includes two innovative pilot projects that apply policy in practice, with clearly defined and measurable performance indicators. The two pilot projects are supported by two ADB technical assistance (TA) projects financed by the Government of Canada to the amount of Can$12.5 million. Each pilot project is subject to an impact evaluation to provide evidence prior to a nationwide rollout of these programs. The first intervention is the youth employment program known as JobStart Philippines. Drawing on successful models in Latin America, Canada, and Europe, JobStart provides job placement assistance to young people. JobStart is currently being piloted in four local government units and helps 1,600 out-of-school youths to find quality jobs. The second innovative intervention is the tourism skills development program, a PPP between the Department of Tourism (DOT), employers, and industry groups, and is being piloted in Bohol, Cebu, Davao, and Palawan, which are fast-growing tourism destinations. The tourism skills development program includes a grants scheme whereby employers can avail of grants to train workers so as to upgrade skills and services.
Impact Improved investment climate
Project Outcome
Description of Outcome Improved competitiveness of selected sectors
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Structural policy reforms to promote competitiveness implemented

2. Efficient market for infrastructure projects through PPPs enhanced

3. Competitiveness of labor markets improved

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Safeguard Categories
Environment C
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Subprogram 2 has been jointly formulated by the Government of the Philippines and ADB, with input into outputs 1 and 2 of the policy matrix from the Government of Japan and inputs into output 3 by the Government of Canada. The government, through the Department of Finance (DOF), has coordinated the reform agenda with other development partners participating in the program policy forum (the governments of Canada, France, and Japan) through the program steering committee.
During Project Implementation During implementation of subprogram 2, the government and ADB agreed to shift two original policy triggers to the post-program partnership framework (P3F) (para. 30) without materially affecting the program's impact and outcome. One new policy trigger was added to subprogram 2. The first policy trigger shifted to the P3F required the government to approve the ports utilization plan designed to decongest container traffic at the Port of Manila and enhance port sales in the Subic Bay Freeport and the Port of Batangas. While the Philippines Port Authority (PPA) had drafted a plan and submitted it to the National Economic Development Authority (NEDA) board for approval, the NEDA board referred the plan back for further revisions, especially in light of the 2014 truck ban that exacerbated congestion at the Port of Manila. The revised draft plan is expected to be resubmitted to NEDA in early 2015. This policy trigger is shifted to the P3F and is replaced in subprogram 2 with the government's interim measure to decongest the Manila container port (para. 19). The second policy trigger shifted to the P3F required the government to provide budgetary financing for the tourism skills development program upon completion of the tourism skills pilot funded under ADB's TA. This policy trigger has been shifted to the P3F because the pilot will be completed at the end of 2015.
Business Opportunities
Procurement Subprogram 2 covers October 2012 October 2014. The P3F covers November 2014 March 2016. DOF is the executing agency for the program and is responsible for the overall implementation of subprogram 2, P3F and the medium-term results framework and coordination among the implementing agencies. The program implementing agencies DOJ, DOLE, DOT, NEDA, DOTC, DTI, the Bureau of Customs, and BIR are responsible for day-to-day implementation of subprogram 2.
Responsible ADB Officer Hattel, Kelly L.
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Department of Finance
DOF Building
Bangko Sentral ng Pilipinas Complex
Roxas Blvd., Manila, Philippines
Timetable
Concept Clearance -
Fact Finding 28 Apr 2014 to 27 Jun 2014
MRM 10 Oct 2014
Approval 15 Dec 2014
Last Review Mission -
Last PDS Update 22 Jan 2015

Loan 3233-PHI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
15 Dec 2014 12 Feb 2015 12 May 2015 31 Dec 2015 - 10 Nov 2015
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 350.00 Cumulative Contract Awards
ADB 350.00 15 Dec 2014 350.00 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 15 Dec 2014 350.00 0.00 100%

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Tenders

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Procurement Plan

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