47225-001: Support for Strengthening Public Debt Management | Asian Development Bank

Myanmar: Support for Strengthening Public Debt Management

Sovereign (Public) Project | 47225-001 Status: Active

The Government's Framework for Economic and Social Reforms recognizes that _maintaining a stable macroeconomic framework is the first order of reforms essential for achieving the overall reform agenda_ and that sound public financial management (including public debt management) will be critical to ensuring this.

Similarly, ADB's Interim Country Partnership Strategy for Myanmar identifies support for an enabling economic environment as a core priority including support for reforms that focus on fiscal sustainability, macroeconomic stability, and strengthening public finance.

Project Details

Project Officer
Boothe, Robert A. Southeast Asia Department Request for information
Country
  • Myanmar
Modality
  • Technical Assistance
Sector
  • Public sector management
 
Project Name Support for Strengthening Public Debt Management
Project Number 47225-001
Country Myanmar
Project Status Active
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8527-MYA: Support for Strengthening Public Debt Management
Technical Assistance Special Fund US$ 1.50 million
TA 8527-MYA: Support for Strengthening Public Debt Management (Supplementary)
Technical Assistance Special Fund US$ 650,000.00
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 Government's Framework for Economic and Social Reforms recognizes that _maintaining a stable macroeconomic framework is the first order of reforms essential for achieving the overall reform agenda_ and that sound public financial management (including public debt management) will be critical to ensuring this.

Similarly, ADB's Interim Country Partnership Strategy for Myanmar identifies support for an enabling economic environment as a core priority including support for reforms that focus on fiscal sustainability, macroeconomic stability, and strengthening public finance.

In recognition of the urgent need for support in this area within the context of Myanmar's reintegration with the international community and an extensive reform program (and related financing requirements), initial support has been provided under an SSTA approved in 2012 (Improving Fiscal Revenue Mobilization). This has allowed for timely support for critical functions primarily focusing on basic capacity building of the foreign exchange and external debt division within the Budget Department in the Ministry of Finance. This initial support, however, is due to end by September 2013.

Follow-on support will be needed over the medium term to allow for broader institutional reforms and capacity building necessary for establishment of an effective institutional framework for sound public debt management. This will include support for strengthening of MOF's capacity for debt recording and management through acquisition and operationalization of a modern debt management and recording system and conduct of related capacity building; support will also be needed to more broadly develop the institutional framework and capacity for public debt management in this regard the TA will support establishment and operationalization of a debt management division within the Treasury Department of MOF which will assume primary responsibility for public debt management, the development of a modern legal and regulatory framework for public debt, and development of domestic market for government securities.

Project Rationale and Linkage to Country/Regional Strategy The Government's extensive reform program and its related financing requirements will require establishment of an effective institutional framework for sound public debt management to ensure that policy objectives can be met on a sustainable basis without compromising macroeconomic stability and risking undermining of the overall reform and transition process. As a first step, this will require support for strengthening of basic capacity related to debt recording and management. Over the medium term, support will also be needed for development of a clear legal framework for public debt management and the establishment of an institutional focal point with primary responsibility for public debt management (i.e. a principal debt management entity).
Impact Public debt is managed on a sound and sustainable basis (in line with ICPS support for enabling economic environment)
Project Outcome
Description of Outcome Strengthened institutional framework for public debt management
Progress Toward Outcome In progress.
Implementation Progress
Description of Project Outputs

Debt recording and management system

Plan defining structure and staffing needs of new debt management division (DMD), transition strategy for its establishment, and roadmap for developing its public debt management functions this will include development by DMD of a medium term debt management strategy

Strengthened legal and regulatory framework for public debt management

(Draft regulations and agreements [including public debt law, agency agreement, and code of conduct]).

Capacity and awareness building to support implementation of TA

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

With support from the TA, a new debt management division (DMD) was established in September 2014 within MOF''s new Treasury Department, consolidating previously fragmented responsibility for management of external and domestic debt. The TA is providing ongoing support for capacity building of the DMD including through placement of highly-experienced long term advisors and establishment of twinning arrangements with well-functioning public debt management offices in the region (e.g. the Public Debt Management Office in Thailand).

The TA is also supporting the establishment of a modern legal and regulatory framework for public debt management. A new public debt management law has been drafted and recently enacted with support from the TA.

In addition to the originally targeted main outputs noted above, the TA has also supported the establishment of an interagency agreement between MOF and the Central Bank of Myanmar along with commencement of regular auction-based issuance of Treasury bills, a necessary step in ending monetization of the deficit. The first Treasury bill and Treasury bond auctions commenced in January 2015 and September 2016, respectively, and are continuing in accordance with a published auction schedule.

A consulting firm to assist MOF in the acquisition and implementation of the debt recording and management system (DRMS) and four individual consultants have been engaged under the TA to date: (i) a public debt regulatory and institutional framework expert, (ii) a DRMS expert, (iii) a design expert, and (iv) a national IT support officer/database administration expert.

The TA has also supported experts who have worked with DMD to develop the legal and institutional framework for effective debt management, including a public debt management law and implanting regulations. Under the TA's support, DMD has also undertaken issuance of government securities for the first time, including both bonds and treasury bills.

Geographical Location Nation-wide
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Business Opportunities
Consulting Services

1. Debt Recording and Management System Expert (international, 4 person-months intermittent)

2. Public Debt Management Expert (international, 12 person-months intermittent)

3. Public Debt Regulatory and Institutional Framework Expert (international, 6 person-months intermittent)

4. Project Coordinator (national, 18 person-months intermittent)

5. CS-DRMS Implementation Expert (50 WDs; international consultant)

Procurement The TA also supported procurement and operationalization of a debt management information system, the Commonwealth Systems Debt Recording and Management System (CS-DRMS). This system allows the DMD to better track and monitor public debt, and generate key financial reports for various stakeholders such as the MOPF and Parliament.
Responsible ADB Officer Boothe, Robert A.
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Public Management, Financial Sector and Trade Division, SERD
Executing Agencies
Ministry of Planning and Finance
Building No 26. Nay Pyi Taw
Republic of the Union of Myanmar
Timetable
Concept Clearance 18 Sep 2013
Fact Finding 09 Sep 2013 to 18 Sep 2013
MRM -
Approval 02 Dec 2013
Last Review Mission -
Last PDS Update 28 Sep 2017

TA 8527-MYA

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
02 Dec 2013 21 Jan 2014 21 Jan 2014 31 Mar 2016 31 Dec 2017 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
2,150,000.00 0.00 0.00 0.00 0.00 0.00 2,150,000.00 02 Dec 2013 1,345,208.79

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.

Title Document Type Document Date
Support for Strengthening Public Debt Management Technical Assistance Reports Dec 2013

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

None currently available.

Related Publications

None currently available.


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.

Tenders

Tender Title Type Status Posting Date Deadline
Support for Strengthening Public Debt Management (CS-DRMS Implementation Expert) Individual - Consulting Active 25 Sep 2017 01 Oct 2017

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Capacity Development Technical Assistance 8527 11 Jan 2016 Crown Agents Limited (United Kingdom) ST. NICHOLAS HOUSE, ST. NICHOLAS ROAD SU SURREY SM1 1EL UNITED KINGDOM Email Address [email protected] Ministry of Finance and Revenue 350000

Procurement Plan

None currently available.