The technical assistance (TA) is intended to help strengthen PFM in PNG by enhancing oversight of statutory authorities, improving project evaluation and prioritization, strengthening procurement arrangements, enhancing transparency and monitoring of subnational service delivery, and supporting the development of domestic bond markets.
|Project Name||Supporting Public Financial Management|
|Country||Papua New Guinea
|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 / Public expenditure and fiscal management
|Gender Equity and Mainstreaming||No gender elements|
|Description||The technical assistance (TA) is intended to help strengthen PFM in PNG by enhancing oversight of statutory authorities, improving project evaluation and prioritization, strengthening procurement arrangements, enhancing transparency and monitoring of subnational service delivery, and supporting the development of domestic bond markets.|
|Project Rationale and Linkage to Country/Regional Strategy||The 2008-2009 mid-term review of the PNG Country Strategy and Program 2006-2010 confirmed that PFM would remain one of the Program's key focal areas. PFM is also central to the Government's strategies, particularly through the Public Sector Reform Program, which underpins the Medium-term Development Strategy (MTDS), by seeking to create the conditions and capacity for government to deliver its development objectives, institutions and systems. PFM reform efforts are focused through the Public Expenditure Review and Rationalization (PERR) process, which is a joint Government-donor program coordinated by the multi-agency PERR implementation committee. Moreover, initiatives to enhance aid effectiveness are set out in the 2008 PNG Commitment on Aid Effectiveness , which localizes the 2005 Paris Declaration on Aid Effectiveness. Among other things, Government and development partners have committed to strengthen public procurement systems, taking into account such recommendations as Country Procurement Assessment Reports (CPAR). Finally, government functions are increasingly being devolved to statutory authorities, particularly in sectors such as transport, where ADB is active. ADB has provided support previously to PFM through TA 4947-PNG: Support for PERR , which reviewed and recommended improvements to statutory authority arrangements. The proposed TA will, inter alia, support implementation of some of those improved arrangements.|
|Impact||A more efficient and effective government administration.|
|Description of Outcome||Better governance through improved transparency, accountability, and efficiency in managing and using public resources|
|Progress Toward Outcome|
|Description of Project Outputs||
The following planned TA outputs are proposed to be delivered in the period to June 2011:
(i) Strengthened Oversight of Statutory Authorities. The proposed TA will work with the Treasury-led inter-agency working group to (a) identify and seek the participation in the exercise of 10 pilot statutory authorities; (b) review available information and information systems; (c) agree key performance indicators (KPIs) and identify any additional information requirements; (d) work with agencies to design and establish the enhanced monitoring process; and (e) identify requirements and approaches for extending the enhanced monitoring process.
(ii) Improved Project Evaluation and Prioritization. The proposed TA will work with the Treasury and DNPM to (a) prepare guidance materials for economic and financial analysis of investment projects; (b) develop 3 case studies of project analysis, which are relevant to the PNG setting; and (c) conduct 4 workshops on project analysis and project financing approaches.
(iii) Improved Procurement Practices. The proposed TA will support ADB's efforts, in conjunction with Government and other development partners, to prepare an updated CPAR (or similar assessment) which will identify improvements in procurement policies and practices. The TA will also support ADB's contributions to coordinated efforts to strengthen procurement arrangements and practices. ADB's COSO will participate in this process.
(iv) Enhanced Subnational Service Delivery Monitoring. Based on the outcome of an exisiting ADB-supported pilot study of service delivery, it is proposed that the TA will support upscaling of this pilot. This will involve refining the survey instrument and methodology, and extending the survey to 10 selected districts. Districts will be selected in areas where ADB has active engagement, for instance, the Highlands provinces. District sample selection will also take into consideration the income grouping of provinces in which the district belongs. This would be in line with the NEFC's income classification of provinces based on their revenue generating capacity. Working with the NEFC, the purpose of the surveys will be to track the services that were actually delivered against the recorded expenditures and assist with diagnosis of service delivery problems.
(v) Kina-denominated Bond Issue. The proposed TA will work with the Treasury and the Bank of PNG to identify in depth the issues requiring resolution prior to any proposed issuance of an ADB-backed Kina-denominated bond. This would include consideration of institutional, regulatory, taxation and legal arrangements. A detailed roadmap towards a local currency bond issue will be prepared and agreed.
Oversight of statutory authorities strengthened
Project evaluation and prioritization improved
Procurement practices improved
Subnational service delivery monitoring enhanced
Road map for domestic bond market development prepared
|Status of Implementation Progress (Outputs, Activities, and Issues)||PDP Australia Pty Ltd, AUS (COSO41-454), ADB Consultant for this Project conducted a workshop entitled "Treasury Training Program". The two sessions workshop was held on 28 September 01 October and 04 October 07 October in Crowne Plaza Hotel, Port Moresby, Papua New Guinea.|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||International consultants (29 person-months) and national consultants (12 person-months) will be engaged with expertise in economic and financial analysis, statutory authority governance, procurement, and bond market development. ADB will engage an international consulting firm using the quality and cost-based selection (QCBS) method (80:20) and through simplified technical proposals in accordance with the Guidelines on the Use of Consultants (2007, as amended from time to time).|
|Responsible ADB Officer||Everett, Hayden B.|
|Responsible ADB Department||Pacific Department|
|Responsible ADB Division||Urban, Social Development & Public Management Division, PARD|
Department of Treasury
6/F The Treasury Building, Lamana Road
P.O Box 542, Waigani Drive, NCD
Papua New Guinea
|Concept Clearance||11 May 2009|
|Fact Finding||02 Mar 2009 to 06 Mar 2009|
|Approval||10 Dec 2009|
|Last Review Mission||-|
|PDS Creation Date||16 Apr 2009|
|Last PDS Update||16 Feb 2011|
|Approval||Signing Date||Effectivity Date||Closing|
|10 Dec 2009||08 Jan 2010||08 Jan 2010||31 Dec 2012||-||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|1,000,000.00||0.00||100,000.00||0.00||0.00||0.00||1,100,000.00||10 Dec 2009||840,335.13|
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