Project Name Pacific Financial Technical Assistance Centre, 2023-2028
Project Number 56235-001
Country / Economy Regional
Cook Islands
Fiji
Micronesia, Federated States of
Kiribati
Nauru
Niue
Palau
Papua New Guinea
Marshall Islands
Samoa
Solomon Islands
Timor-Leste
Tonga
Tuvalu
Vanuatu
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 10003-REG: Pacific Financial Technical Assistance Centre, 2023-2028
Technical Assistance Special Fund US$ 1.00 million
Operational Priorities OP2: Accelerating progress in gender equality
OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
OP6: Strengthening governance and institutional capacity
OP7: Fostering regional cooperation and integration
Sector / Subsector

Finance / Central banking systems

Public sector management / Economic affairs management - Public expenditure and fiscal management

Gender Some gender elements
Description This proposed Knowledge and Support TA will continue ADB's support of the PFTAC of the IMF-responsible for providing knowledge and capacity development support to Pacific DMCs-in its Phase VI from May 2023 to April 2028. PFTAC was established in 1993 and is a collaborative venture between the IMF, the recipient countries, and bilateral and multilateral donors. All fourteen of ADB's DMCs in the Pacific are benefiting from PFTAC's TA. PFTAC has responded effectively and in a timely manner to member countries' needs in most program areas. All fourteen of ADB's DMCs in the Pacific are benefitting from PFTAC's TA - Cook Islands, Fiji, Kiribati, Marshall Islands, Federated States of Micronesia, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu. PFTAC has responded effectively and in a timely manner to member countries' needs in most program areas.
Project Rationale and Linkage to Country/Regional Strategy

Public administrations in Pacific DMCs often face issues of weak capacity in policy making, management, and technical functions. Particularly affected are technical functions that are not routinely used and require specific expertise, but high staff turnover, lack of staff, and lack of adequate skills can also affect basic capabilities. In the public sector, this contributes to weaknesses in economic governance, and inefficient and ineffective public service delivery. Improving public sector management, strengthened government and SOE systems and processes, and specialized TA is a core part of Pacific Approach 2021-2025, ADB's country partnership strategy with the 12 smaller Pacific DMCs. Strengthening public sector management and maintaining focus on sustained capacity development are likewise emphasized in ADB's country partnership strategies with Fiji and Papua New Guinea. The proposed TA contributes to ADB's Strategy 2030 operational priorities (OP) on accelerating progress in gender quality (OP2), tackling climate change, building climate resilience, and enhancing environmental sustainability (OP3), strengthening governance and institutional capacity (OP6), and fostering regional cooperation and integration (OP7).

This TA is in line with ADB's Strategy 2030 operational plan for operational priority (OP) 6 on strengthening governance and institutional capacity and contributes to OP2 on gender equality and OP3 on tackling climate change, building climate resilience, and enhancing environmental sustainability. PFTAC compliments ADB's support to address long-term capacity gaps in the Pacific, contributes to reducing fragmentation among donors, and achieving efficiencies in TA provision.

Impact

Macroeconomic and fiscal resilience to disaster caused by exogenous shock or natural hazards, climate change, and adverse economic developments strengthened; macro-financial sustainability promoted; and gender equity and inclusive growth facilitated (PFTAC Phase VI Program Document, May 2023April 2028).

Project Outcome
Description of Outcome

Capacity to conduct sound macro-economic analysis, toward designing and implementing prudent PFM, revenue administration, financial sector supervision policies, improved.

Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Macroeconomic analytical capacities developed.

Public financial management systems strengthened.

Methodologies and operational plans for efficient revenue administration and data collection improved.

Financial sector supervision enhanced.

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Cook Islands - Nation-wide; Fiji - Nation-wide; Kiribati - Nation-wide; Marshall Islands - Nation-wide; Micronesia, Federated States of - Nation-wide; Nauru - Nation-wide; Niue - Nation-wide; Palau - Nation-wide; Papua New Guinea - Nation-wide; Samoa - Nation-wide; Solomon Islands - Nation-wide; Timor-Leste - Nation-wide; Tonga - Nation-wide; Tuvalu - Nation-wide; Vanuatu - Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The ADB will continue to provide strategic guidance through the Pacific Department and Southeast Asia Department's participation on the PFTAC Steering Committee in consultation with the Pacific Liaison and Coordination Office, Pacific Subregional Office, Papua New Guinea Resident Mission, Timor-Leste Resident Mission, and the Pacific Country Offices in the eleven Pacific DMCs. ADB adds value by providing strategic and operational guidance to the PFTAC through the program design, annual steering committee meetings, and work planning processes; and on a day-to- day basis at the country level. PFTAC support complements other TA projects undertaken by ADB at regional and country levels across the PFTAC core areas. PFTAC support also contributes directly to the design and implementation of ADB projects and programs, Both institutions continue to work closely to avoid duplication and gaps in their support.
During Project Implementation Annual work planning processes are integrated in regional and country-level coordination mechanisms to monitor and address risks during Phase VI as listed in the design and monitoring framework. Recipient countries and development partners will provide adequate and timely financial support to ensure funding for the baseline budget scenario and allow for a smooth transition from Phase V to VI. PFTAC maintains its own website, providing regular updates against activity plans and country strategies. Knowledge and training materials will be disseminated throughout the TA via the PFTAC website; and regional and knowledge sharing workshops.
Business Opportunities
Consulting Services The Asian Development Bank (ADB) funds are pooled with those from other development partners and managed by the International Monetary Fund (IMF). The IMF is responsible for the managerial, technical, and administrative arrangements of the Pacific Financial Technical Assistance Centre (PFTAC) along with the relevance and quality of PFTAC assistance. The IMF (i) assigns the center coordinator (full-time staff member); (ii) selects the resident advisors from their professional staff; (iii) hires short-term experts using IMF procedures and draws on experts from its approved rosters; (iv) provides supervision and backstopping services; (v) provides administrative support; and (vi) manages the cost-sharing contributions of the development partners. The IMF is therefore responsible for the terms of reference for the program advisors and the short-term experts engaged. These are (i) Macroeconomic Management and Statistical Advisors, (ii) Public Financial Management Advisors, (iii) Revenue Administration Advisors, and (iv) Financial Sector Advisors The indicated number of advisors in each program area is based on the baseline budget scenario of the PFTAC Phase VI program document. Additional advisors may be added if sufficient funds become available during Phase VI.
Procurement ADB's Procurement, Portfolio, and Financial Management Department has undertaken a review of the procurement policies and procedures of IMF and confirmed that they are consistent with ADB's Core Procurement Principles. Subject to approval by the relevant authority in ADB, the procurement policy and procedures of IMF may be used to procure goods, works and services in compliance with the provisions of the ADB Procurement Policy (2017).
Responsible ADB Officer Webb, James M.
Responsible ADB Department Sectors Group
Responsible ADB Division Public Sector Management and Governance Sector Office (SG-PSMG)
Executing Agencies
International Monetary Fund
Timetable
Concept Clearance 04 Oct 2022
Fact Finding -
MRM -
Approval 28 Nov 2022
Last Review Mission -
Last PDS Update 01 Dec 2022

TA 10003-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
28 Nov 2022 - 28 Nov 2022 30 Apr 2028 - -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 09 Sep 2023 1,000,000.00
 
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