The TA will help the government enhance the efficiency of externally financed public investments and, in particular, strengthen the government's effective mobilization and utilization of ADB resources by (i) enhancing the capacity of government staff involved in project financial management, specifically in the financial preparation and appraisal of projects to optimize the utilization of borrowed funds and ensure debt repayment, and (ii) helping the government develop a manual on the financial management of ODA and less-concessional borrowing, as well as sector-specific guidelines on the financial preparation and appraisal of ADB-funded investment projects.
|Project Name||Supporting Project Financial Management Decentralization (Phase 3)|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Public sector management / Decentralization - Economic affairs management
|Gender Equity and Mainstreaming||No gender elements|
|Description||The TA will help the government enhance the efficiency of externally financed public investments and, in particular, strengthen the government's effective mobilization and utilization of ADB resources by (i) enhancing the capacity of government staff involved in project financial management, specifically in the financial preparation and appraisal of projects to optimize the utilization of borrowed funds and ensure debt repayment, and (ii) helping the government develop a manual on the financial management of ODA and less-concessional borrowing, as well as sector-specific guidelines on the financial preparation and appraisal of ADB-funded investment projects.|
|Project Rationale and Linkage to Country/Regional Strategy||
Since Viet Nam's attainment of the status of a middle-income country in 2010, its access to traditional concessional official development assistance (ODA) has diminished. ADB and the government recognize, however, that continued growth and poverty reduction through the successful implementation of the 5-year Socio-Economic Development Plan, 2011 2015 will require costly structural reform and significant infrastructure investments to address bottlenecks. Faced with the increasing cost of finance and growing investment needs, the government need to improve the efficiency of externally financed public investments. This will entail improvements to the project financial management in the central government and local governments alike and enhanced external debt management that mitigates the risks of external borrowing.
Increasing the economic and social returns on public investments requires building the capacity of government officials responsible for the financial appraisal of investment projects. Currently, central and local government officials lack the capacity to conduct by themselves effective project financial analysis. To strengthen their ownership of projects and programs, they need to improve their knowledge and skills regarding project financial analysis, especially toward improving the efficiency and viability of proposed investments. Improving such knowledge and skills is also critical for government officials responsible for appraising and approving projects. Additionally, the lack of clear guidelines on project financial preparation and appraisal, and the fragmented legal framework for financial management during project implementation, further made it difficult for staff to properly and consistently conduct project financial management.
ADB's newly approved country partnership strategy 2012-2015 cites the strategic thrust to support Viet Nam's transition to status as an upper-middle income country through three pillars: inclusive growth, environmental sustainability, and improved efficiency. In line with the country partnership strategy, the TA will support the governement in more effective utilization of ADB resources through improved financial preparation and management of ADB-funded projects in Viet Nam.
|Impact||More effective utilization of ADB resources by the Government of Viet Nam|
|Description of Outcome||Improved financial preparation and management of ADB-funded projects in Viet Nam|
|Progress Toward Outcome||Through a series of training courses and workshops held under the TA, responsible government officials at both central and local levels have better understandings of the requirements and procedures on financial analysis of investment projects funded by ADB and on financial management of ODA and less concessional funded projects.|
|Description of Project Outputs||
1. Sector-specific guidelines on project financial preparation and appraisal for ADB-funded investment projects developed
2. Well-defined and streamlined manual on financial management of ODA and less-concessional borrowings developed
3. Skills and knowledge of government staff on project financial management enhanced, particularly regarding project financial preparation and appraisal
|Status of Implementation Progress (Outputs, Activities, and Issues)||
The TA's products were finalized. In response to the Government's additional request, the TA also supported the development and dissemination of a new circular on project financial management which was issued in December 2013. The planned training activities have been completed in October 2014. To optimize the use of TA funds to meet increasing demand for training activities in project financial management, ADB has approved for for TA's extension from December 2014 to 30 June 2015, so that additional training courses on comprehensive and specific topics of project financial management could be further conducted. On 14 Nov. 2014, CD VRM approved the Extension of TA closing date until 30 June 2015, and reallocation of TA funds. 5 more training courses/ seminars were organized during the time from Jan. to June 2015. 2 products as main outputs of the TA (1) Manual For Financial Management of Projects financed by ODA of less concessional funds in Viet Nam and (2) Introduction to Financial Analysis of ADB-financed investment projects in Viet Nam were also published by June 2015.
By 30 Sept. 2015 the project was officially closed.
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Consultations with Ministry of Finance, other line ministries, project management units, and some international development partners were conducted during project design. An ADB fact-finding mission fielded from 21 March to 2 April 2012 to prepare TA reached an understanding with the government on the TA impact, outcome, outputs, implementation arrangements, cost, financing arrangements, and terms of reference of consultants.|
|During Project Implementation||Consultations were conducted with key stakeholders and other international development partners to discuss the TA products. Meetings with line agencies, local authorities, project management units at different levels will be organized to ensure a practical approach to generating TA products.|
The project will require the following consultancy service:
1. International Expert on Project Financial Management Team Leader (6 person-months, intermittent)
2. National Public Financial Management Expert (12 person-months, intermittent)
3. National Economist (8 person-months, intermittent)
|Procurement||Project will purchase some equipment includes computers, printers, and one photocopier.|
|Responsible ADB Officer||Chu Thi Hong Minh|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Viet Nam Resident Mission|
|Concept Clearance||12 Mar 2012|
|Fact Finding||21 Mar 2012 to 01 Apr 2012|
|Approval||27 Sep 2012|
|Last Review Mission||-|
|Last PDS Update||10 Nov 2015|
|Approval||Signing Date||Effectivity Date||Closing|
|27 Sep 2012||18 Dec 2012||18 Dec 2012||15 Dec 2014||30 Jun 2015||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|580,000.00||0.00||120,000.00||0.00||0.00||0.00||700,000.00||27 Sep 2012||560,940.59|
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 Access to Information Policy (AIP) 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.
|Title||Document Type||Document Date|
|Supporting Project Financial Management Decentralization (Phase 3): Technical Assistance Completion Report||TA Completion Reports||May 2016|
|Supporting Project Financial Management Decentralization (Phase 3)||Technical Assistance Reports||Sep 2012|
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
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The Access to Information Policy (AIP) 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.
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