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 Name||Institutional Strengthening of the Ministry of Finance and Economic Development|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Public sector management / Economic affairs management - Reforms of state owned enterprises
|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|
|Description of Outcome||Improved internal corporate planning processes in the Planning and Budget Department (PBD) and strengthened PE oversight.|
|Progress Toward Outcome||
Good progress have been made. The TA assisted all of Government's ministries complete their corporate plans and is continuing with capacity building of PERMU and the PEs through training and workshops.
The TA has recently completed an induction training on the PE Act and understanding financial statement for all new PE directors.
|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)||
The TA was extended for 12 months until 31 December 2017, to further assist the Government's Central Procurement Unit and Public Enterprises in capacity building and reform.
MYOB support has shown substantial improvement of public enterprises on the understanding of the system.
Assistance to Public Works Department (PWD) is progressing with a summary of Pacific Islands building codes, a review/commentary on the draft Tuvalu Building Act and review of PWD Technical Specification. The TA will also assist merge the tendering documents used by the CPU and PWD to ensure there is consistency between the two documents.
Procurement assistance under the TA involve updating standard bidding documents, updating procurement system coverage, support to the building sector, record keeping and e-procurement.
Q1 2017 progress update:
Vaiaku Lagi Hotel was sold in November 2016.
A key achievement of the program was the successful sale of the Vaiaku Lagi Hotel in 2016. Previous efforts by the government to sell the hotel had been unsuccessful for lack of private sector interest (partly because of a ban on transferring the sublease of the land to an international investor). However, in 2015, the cabinet approved the sale of the hotel concession to the Tuvalu National Provident Fund, which will operate the hotel under a new subsidiary. The sale was completed on 30 November 2016 and the hotel was renamed Funafuti Lagoon Hotel. The new owner intends to increase the number of rooms and expand and improve the range of facilities available to guests. The government is expected to benefit from the concession sale through improved financial returns but does not bear the risks associated with the new investment. Also, to the extent that the new operator can increase international guest occupancy, benefits will accrue to the broader economy.
Q2 2017 progress:
1. Staff from the Central Procurement Unit (CPU) of the Ministry of Finance have undergone training in public procurement under CIPS/UNDP which is essential for the sustainability of public procurement practice in Tuvalu.
2. Engagement of a Procurement Operational Support Associate consultant to provide longer on the ground support to the CPU in the absence of the Procurement Specialist.
|Summary of Environmental and Social Aspects|
|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.
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||Olsson, Sivou Beatrice|
|Responsible ADB Department||Pacific Department|
|Responsible ADB Division||Pacific Subregional Office in Suva, Fiji|
Ministry of Finance and Economic Development
|Concept Clearance||11 Apr 2012|
|Fact Finding||12 Apr 2012 to 17 Apr 2012|
|Approval||29 Jun 2012|
|Last Review Mission||-|
|Last PDS Update||25 Sep 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|29 Jun 2012||14 Jul 2012||14 Jul 2012||30 Jul 2013||31 Dec 2017||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|990,000.00||428,091.00||0.00||0.00||0.00||0.00||1,418,091.00||29 Jun 2012||1,212,877.40|
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.
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|Title||Document Type||Document Date|
|Institutional Strengthening of the Ministry of Finance and Economic Development||Technical Assistance Reports||Jun 2012|
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