Lao People's Democratic Republic: Strengthening Capacity for Enhanced Operational Effectiveness

Sovereign Project | 45392-001

Summary

The Government is systematically managing its development assistance, as required for better development results under the Paris Declaration on Aid effectiveness. The Government and 24 development partners, including ADB prepared a country action plan (CAP) to implement the Vientiane Declaration in 2007. The CAP included 40 time-bound actions under the five principles of ownership, alignment, harmonization and simplification, managing for results, and mutual accountability. ADB is closely cooperating with major bilateral and other multilateral development partners in the Lao PDR and assisting the Government in implementing the CAP. The new Country Partnership Strategy (CPS) of ADB indicates that it will (i) emphasize applying regional knowledge and experience to development issues in the Lao PDR, and (ii) continue to manage, disseminate and share knowledge through seminars, workshops and meetings.

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Project Name Strengthening Capacity for Enhanced Operational Effectiveness
Project Number 45392-001
Country Lao People's Democratic Republic
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8047-LAO: Strengthening Capacity for Enhanced Operational Effectiveness
Technical Assistance Special Fund US$ 205,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector Public sector management - Public administration
Gender Equity and Mainstreaming
Description

The Government is systematically managing its development assistance, as required for better development results under the Paris Declaration on Aid effectiveness. The Government and 24 development partners, including ADB prepared a country action plan (CAP) to implement the Vientiane Declaration in 2007. The CAP included 40 time-bound actions under the five principles of ownership, alignment, harmonization and simplification, managing for results, and mutual accountability. ADB is closely cooperating with major bilateral and other multilateral development partners in the Lao PDR and assisting the Government in implementing the CAP. The new Country Partnership Strategy (CPS) of ADB indicates that it will (i) emphasize applying regional knowledge and experience to development issues in the Lao PDR, and (ii) continue to manage, disseminate and share knowledge through seminars, workshops and meetings.

Monitoring the process of CPS implementation is a joints effort between ADB and the Government through the sector results frameworks. The annual ADB-World Bank joint country portfolio review (JCPR) with the Government will serve as an important instrument, among others, to support the CPS monitoring process. However, the current country portfolio review process needs to be strengthened to be consistent with the monitoring of outcome and output indicators reflected in sector results frameworks, and linked to the monitoring and evaluation is needed.

The 2011 JCPR confirmed the improved portfolio performance of ADB-financed operation, and however, project extension, disbursement delays and inadequate financial management remain a concern. The 2011 Joint Action Plan recommended consistent use of the project readiness filters, taking advance action for the recruitment of consultants and the procurement of goods and works whenever possible, and strengthen the capacity of provincial executing agencies (EAs) in project management in the context of decentralization. n of projects. Thus, capacity development of Government staff for more effective monitoring of development results at sector and project level is needed.

In November 2010, the Ministry of Finance (MOF) issued the Instruction on Financial Management for Official Development Assistance. This contains a provision for the management of fixed assets during project implementation, at project closure, and during operation. Therefore, there is an emerging need to improve skills and knowledge of EAs staff at central and provincial levels in systematically reporting of fixed assets funded by projects, timely transfer of assets at project completion, and regular monitoring of their quantity, technical quality and appropriate utilization.

Project Rationale and Linkage to Country/Regional Strategy The Government of the Lao People's Democratic Republic (Lao PDR) has requested the Asian Development Bank (ADB) to provide technical assistance (TA) to help strengthen the effectiveness and impact of ADB operations in the Lao PDR by (i) building capacity of government staff in monitoring sector results frameworks, (ii) improving quality of project and program management, and (iii) assisting in mainstreaming the government asset management process. During consultations, ADB and the Government reached an agreement on the impact, outcome, outputs, implementation arrangements, and cost and financing arrangements for the S-CDTA.
Impact Enhanced operational effectiveness of ADB portfolio in the Lao PDR
Project Outcome
Description of Outcome Improved monitoring of the ADB portfolio in the Lao PDR
Progress Toward Outcome An institutional mechanism for result monitoring was established, pilot monitoring of the development results at sector level was substantially completed, the monitoring tools for sector and project level changes were prepared, and training on the use such tools were provided to government agencies and LRM concerned staffs.
Implementation Progress
Description of Project Outputs

Improved system of results-based portfolio reviews recommended

Mechanism for implementing project readiness filters provided

Strengthened procedures for reporting, transfer and monitoring of fixed assets operational

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

(i) In order to sustain sector result monitoring process, in October 2013, the consultant was hired to (1) institutionalize the monitoring process, and (2) design a result monitoring tool kit for use by sector minitries. The tool kits was finalized in March 2014 and the dissimination workshop was held on 9 May 2014. To strengthen the operational effectiveness, a workshop on National Request for Quotation for Procurement of Goods and Small works was held on 11 June 2014; and a workshop on Strengthening Capacity for Implementation of Project Gender Action Plans for project implementation agencies and gender consultants was held on 23 June 2014.

(ii) A diagnostic study on quality at project entry was undertaken and action plan for mainstreaming of project readiness filters was recommended including amending of the Government Standard Operating Procedure for enforcing advance contracting.

(iii) The TA supports the State Asset Management Department (SAMD), Ministry of Finance in developing a tool kits for managing project assets. A dessimination workshop of the toolkit was held on 28 February 2014; followed by on-the-job training for four PIUs during 2-5 September 2014.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Consultation with Department of International Cooperation (DIC) of Ministry of Planning Investment (MPI) was done
During Project Implementation Consultation with DIC, State Asset Management Department (SAMD) of Ministry of Finance is ongoing on asset management. More consultation will be held in Q4, 2013 under the additional consulting services in order to sustain and mainstream the achievements delivered under output 1 and 2.
Business Opportunities
Consulting Services Recruitment completed.
Responsible ADB Officer Sisavanh Phanouvong
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Lao Resident Mission
Executing Agencies
Asian Development Bank6 ADB Avenue, Mandaluyong
Metro Manila, Philippines
P.O. Box 789, 1099 Manila,
Philippines
Timetable
Concept Clearance 28 Dec 2011
Fact Finding -
MRM -
Approval 27 Dec 2011
Last Review Mission -
Last PDS Update 31 Mar 2015

TA 8047-LAO

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
27 Dec 2011 - 27 Dec 2011 31 Dec 2013 31 Dec 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
205,000.00 0.00 0.00 0.00 0.00 0.00 205,000.00 27 Dec 2011 166,336.85

Safeguard Documents

See also: Safeguards

No documents found.

Evaluation Documents

See also: Independent Evaluation

No documents found.


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