Tuvalu: Institutional Strengthening of the Ministry of Finance and Economic Development

Sovereign Project | 46108-001

Summary

The proposed TA will directly respond to the government's strategic area of good governance identified in its national development strategy (Te Kakeega II) where it gives priority to the strengthening of public administration oversight, institutionalization of sound management and principles and practices in the public service and reduce subsidies to PE through improved management, operations and business planning . ADB's Country Partnership Strategy (CPS 2002-2012) also focus on these areas as poor expenditure allocation decisions have significant opportunity costs that impede development and growth in a micro-economy such as Tuvalu. For this reason, the CPS focuses on effective fiscal management, which can make the greatest contribution to meeting Government priorities.

Latest Project Documents

Consulting Notices

See also: CMS

No notices are currently available for this project.

Procurement Notices

See also: Operational Procurement

No notices are currently available for this project.

Procurement Documents

No documents of this type are currently available for this project.


Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name Institutional Strengthening of the Ministry of Finance and Economic Development
Project Number 46108-001
Country Tuvalu
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8100-TUV: Institutional Strengthening of the Ministry of Finance and Economic Development
Technical Assistance Special Fund US$ 300,000.00
TA 8100-TUV: Institutional Strengthening of the Ministry of Finance and Economic Development (Supplementary)
Technical Assistance Special Fund US$ 90,000.00
TA 8100-TUV: Institutional Strengthening of the Ministry of Finance and Economic Development (2nd supplementary)
ADB Co-financed Assistance Fund US$ 54,275.00
TA 8100-TUV: Institutional Strengthening of the Ministry of Finance and Economic Development (supplementary)
Technical Assistance Special Fund US$ 600,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector Public sector management - Public administration
Gender Equity and Mainstreaming No gender elements
Description The proposed TA will directly respond to the government's strategic area of good governance identified in its national development strategy (Te Kakeega II) where it gives priority to the strengthening of public administration oversight, institutionalization of sound management and principles and practices in the public service and reduce subsidies to PE through improved management, operations and business planning . ADB's Country Partnership Strategy (CPS 2002-2012) also focus on these areas as poor expenditure allocation decisions have significant opportunity costs that impede development and growth in a micro-economy such as Tuvalu. For this reason, the CPS focuses on effective fiscal management, which can make the greatest contribution to meeting Government priorities.
Project Rationale and Linkage to Country/Regional Strategy

The PEFA assessment and the diagnostic analysis of MFED had identified weaknesses that need improvement if budget credibility and resource allocation issues are to be resolved. PFTAC will help with the PFM plan while AusAID has provided assistance to the Audit and Treasury department. Improvements made in the Auditor General's office and the Treasury Department cannot be sustained if broader problems identified within MFED are not resolved. The proposed TA will complement these ongoing reforms in the Audit and Treasury Department.

The proposed TA will build upon the success of TA 7161-TUV, which helped establish the PE Act and policies to improve the performance of PEs. The proposed TA will strengthen the capacity of stakeholders to implement the PE Act to better monitor the performance of the PEs.

Impact Improved public financial management (PFM) and public enterprises (PE) performance
Project Outcome
Description of Outcome Improved internal corporate planning processes in the Planning and Budget Department (PBD) and strengthened PE oversight.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Improved human resource reform in the PBD

Capacity development plan for PERMU fully implemented.

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

Two outputs are expected from the TA:

(i) Human resource reform in PDB

The TA will review the findings of the Diagnostic Analysis to determine if the Government has taken any steps to reduce or eliminate the performance gaps identified in the final report. Building upon this review, the TA will develop an appropriate institutional operating strategy for MFED that will amongst other things: (i) establish achievable and measurable key performance targets and outputs with appropriate indicators; (ii) ensure there is proportionality between expected results and available resources and; (iii) clarify the expectations of clients.

(ii) Improve planning and guidance and oversight of PE

The TA will also review the implementation of the PE Act to identify areas that requires strengthening. Based on this review, the TA will develop a capacity building strategy to build PERMU's understanding of their new roles under the PE Act. In developing the strategy, the TA will consider (i) community service obligations (CSO) calculations and negotiations; (ii) financial reporting requirements; and; (iv) corporate planning.

The TA will be implemented over a 12 month period, and will finance 9.5 person-months of intermittent international consulting and 5 person-months of national consulting. The consultants will be selected and engaged on an individual basis. The consultants will be engaged according to ADB Guidelines on the Use of Consultants (2010, as amended from time to time). The proceeds of the TA will be disbursed in accordance with the TA Disbursement handbook dated May 2010, as amended from time to time.

The team leader will produce a concise inception report outlining the work program and milestones for the duration of the TA, and a final report summarizing the achievements, issues, lessons learned, and next steps. Throughout the 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.

Additional financing of $600,000 approved on 10 July 2014 to explore options to privatize the government owned hotel and some elements of the Public Works Department, restructure the National Fishing Corporation, and reexamine the previous merger of post, philatelic and travel SOEs.

TA extended for closure on 30 April 2016.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design

Two outputs are expected from the TA:

(i) Human resource reform in PDB

The TA will review the findings of the Diagnostic Analysis to determine if the Government has taken any steps to reduce or eliminate the performance gaps identified in the final report. Building upon this review, the TA will develop an appropriate institutional operating strategy for MFED that will amongst other things: (i) establish achievable and measurable key performance targets and outputs with appropriate indicators; (ii) ensure there is proportionality between expected results and available resources and; (iii) clarify the expectations of clients.

(ii) Improve planning and guidance and oversight of PE

The TA will also review the implementation of the PE Act to identify areas that requires strengthening. Based on this review, the TA will develop a capacity building strategy to build PERMU's understanding of their new roles under the PE Act. In developing the strategy, the TA will consider (i) community service obligations (CSO) calculations and negotiations; (ii) financial reporting requirements; and; (iv) corporate planning.

During Project Implementation

The TA will be implemented over a 12 month period, and will finance 9.5 person-months of intermittent international consulting and 5 person-months of national consulting. The consultants will be selected and engaged on an individual basis. The consultants will be engaged according to ADB Guidelines on the Use of Consultants (2010, as amended from time to time). The proceeds of the TA will be disbursed in accordance with the TA Disbursement handbook dated May 2010, as amended from time to time.

The team leader will produce a concise inception report outlining the work program and milestones for the duration of the TA, and a final report summarizing the achievements, issues, lessons learned, and next steps. Throughout the 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.

Additional finance approved on 10 July 2014 will also fund a Legal Specialist, MYOB Specialist and Sales Broker as per request by Government.

Business Opportunities
Consulting Services

The MFED will be the executing agency, and will appoint a TA focal point who will oversee the activities of, and maintain information exchange with, the consultant team. The consultants will, with the TA focal point, also liaise with development partners to promote coordination and complementarity in program and/or project activities. To promote sustainability and broad-based commitment to the direction of reforms and guide TA implementation, the TA will make use of the steering committee formed under ADB's TA on Capacity Development for Public Financial Management comprising officials from the MFED, line ministries, and representatives from nongovernment organizations and the private sector and chaired by the secretary of finance.

The TA will be implemented over a 12-month period from 1 August 2012 to 30 July 2013 and will finance 12.5 person-months of intermittent international consulting services and 5 person-months of national consulting services. The international consultant's team will comprise (i) a team leader and strategic planning and human resource management specialist (international, 6 person-months); (ii) a public enterprise specialist (international, 3.5 person-months); and (iii) a procurement specialist (international, 3 person-months). These specialists will be joined by a local project facilitation specialist (national, 5 person-months intermittent). The consultants will be selected and engaged on an individual basis and according to ADB Guidelines on the Use of Consultants (2010, as amended from time to time). The proceeds of the TA will be disbursed in accordance with the Technical Assistance Disbursement Handbook (2010, as amended from time to time).

The team leader will produce a concise inception report outlining the work program and milestones for the duration of the TA, and a final report summarizing the achievements, issues, lessons learned, and next steps. Throughout the TA, the team leader will submit (by email) brief monthly progress reports summarizing TA activities, progress, issues, and constraints. Team members will produce 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.

Progress of the TA will be monitored using intended outcomes and outputs described in the design and monitoring framework. ADB will assist the government in sharing all reports with other development partners. These will be disseminated through meetings, radio interviews, and the ADB website.

Procurement The TA consultants will review existing government rules and practices for procurement of goods, works, and services by the public sector and build into the PTB Regulations (2008 revised edition) a set of procedures for this. The set of procedures should (i) ensure that open competitive procurement is the default method of procurement, but define clearly the situations in which other methods may be used and how this is to be justified; (ii) provide for public access to all government procurement plans, bidding opportunities, and contract awards; and (iii) provide for an independent administrative procurement review process for handling complaints by participants prior to contract signing and ensuring that those making procurement decisions are accountable for them. The consultants will also identify the merits of various options, including the engagement of an independent third party to manage government procurement and having a central procurement unit for a small administration such as Tuvalu.
Responsible ADB Officer Malie Lototele
Responsible ADB Department Pacific Department
Responsible ADB Division Pacific Subregional Office in Suva, Fiji
Executing Agencies
Ministry of Finance and Economic PlanningPrivate Bag
Funafuti
Tuvalu
Timetable
Concept Clearance 11 Apr 2012
Fact Finding 12 Apr 2012 to 17 Apr 2012
MRM -
Approval 29 Jun 2012
Last Review Mission -
Last PDS Update 25 Feb 2015

TA 8100-TUV

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
29 Jun 2012 14 Jul 2012 14 Jul 2012 30 Jul 2013 30 Apr 2016 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
990,000.00 54,275.00 0.00 0.00 0.00 0.00 1,044,275.00 29 Jun 2012 666,352.25

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.