|Project Name||Strengthening Treasury Operations and Capital Market Reform|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Finance / Finance sector development - Money and capital markets
|Gender Equity and Mainstreaming||No gender elements|
|Project Rationale and Linkage to Country/Regional Strategy|
|Impact||More cost effective utilization of BTr's fiscal resources.|
|Description of Outcome||Efficiency of the primary and secondary government debt markets enhanced.|
|Progress Toward Outcome|
|Description of Project Outputs||
BTr's debt and cash management functions enhanced.
Primary dealer system strengthened.
Development of capital market enhanced.
|Status of Implementation Progress (Outputs, Activities, and Issues)||
The TA is expected to close on 30 Oct 2017. Contracted amount as of 27 Sep 2017 is $442,600 (88% of total TA amount) while disbursement is $417,359, which is 94% of the total contracted amount.
The project team has been closely engaged with BTr since the approval of the TA. Required consultants under each output have been engaged and have utilized 97% of the consultant's budget. The TA supported the development and presentation of an intensive training program for 40 staff of BTr which covered fixed income including the underlying math, trading strategies and risk management. This training program, which can be replicated, also included mock bond trading sponsored by the local Bloomberg office. In addition, the TA funded the continuing engagement of a capital markets expert to re-organize, strengthen, and modernize the BTr's liquidity management function, including management of the bond sinking fund. Recently, a second capital markets expert was retained to provide a phase 2 of risk management training covering more sophisticated modeling methods, and to build an institutional risk management function including policy manuals and a limits framework. In addition, the TA is providing access to an IT expert to manage the purchase and installation of a modern treasury management system, including a scriptless registry. This is the first such update in almost 25 years. The "Go Live" of the new and modernized registry of scriptless securities is targeted in November 2017. Finally, the TA has provided funding for ad hoc capacity development, such as a repo workshop by the International Capital Markets Association (ICMA), and access to ICMA's legal opinions and research library.
A review mission was conducted from November 2015 to March 2016. This coincided with ADB's high-level engagements with the Philippine government and financial sector stakeholders. These engagements included workshops, forums, and closed-door meetings with senior policy makers with the objective of achieving consensus to develop a short to medium-term capital market development plan to be initiated and executed by the government. Meetings and workshops included senior staff of the Bangko Sentral ng Pilipinas (BSP), Bureau of the Treasury (BTr), the Securities and Exchange Commission (SEC), and the Bureau of Internal Revenue (BIR). The Insurance Commissioner (IC) and his staff attended select events and meetings.
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
OUTLINE TERMS OF REFERENCE FOR CONSULTANTS
1. National investment and debt management specialist (individual, intermittent,
5 person-months). The objective of the engagement is to improve the technical capacity of staff of the Bureau of the Treasury (BTr) across its various operations units including dealing, processing, and asset management. The expert will work with BTr s government debt resident adviser and assist BTr in implementing its updated organization structure as well as launching BTr s newly developed investment and risk management functions. The expert will likewise strengthen BTr s dealers by increasing their technical capacity through on-the-job training. The expert will improve BTr s trading room infrastructure by, among others, standardizing counterparty settlement instructions and establishing delivery-verses-payment (DVP) for offshore bonds. Finally, the expert will support BTr s efforts to expand the investor base and number of dealing participants, and will establish a permanent market and stakeholder feedback mechanism to provide for constant enhancement.
2. The consultant will have at least 15 years of experience as a treasurer or asset manager with a national treasury or an international bank. The duration of this consultancy will be a total of 134 working days (five months) on an intermittent basis starting in November 2014 and finishing by November 2015. The expert will report to the national treasurer and other relevant officials as well as the Asian Development Bank (ADB) project officer.
3. National debt and risk management specialist (individual, intermittent,
9 person-months). The objective of this engagement is to strengthen BTr s middle office risk management processes. Upon completion of the engagement, BTr s staff will be able to identify, quantify, manage and control all risk exposures arising from the investment functions of the BTr.
4. The expert will work with BTr s national and international resident advisers and assist BTr in institutionalizing its risk management policies and procedures to support the investment framework. Work will include the design and implementation of an organizational setup, policies and procedures, and the responsibilities of the risk management function within the asset management division. The expert will design the organization structure and formulate the statement of responsibilities and performance standards for the risk management unit. In addition, the expert will (i) develop an operational and investment risk profile; (ii) formulate a detailed risk management program covering all facets of risk exposures including, but not limited to market, liquidity, and operating risks; and (iii) develop models and standards for setting liquidity, market, counter-party, and dealing risk limits. The expert will also design a management information system to monitor, oversee, and report all risk issues up to the investment committee. Finally, the expert will provide a training program for asset management personnel to cover the basics of risk management and risk principles.
5. The consultant will have at least 15 years of experience as a treasurer or asset manager with an international bank or the local operations of an international bank. The duration of this consultancy will be a total of 198 working days (nine months) on an intermittent basis starting in November 2014 and finishing by November 2015. The expert will report to the national treasurer and other relevant officials as well as the ADB project officer.
6. International government debt auction specialist (individual or a firm, 22 person-days continuous). Currently, BTr utilizes the Automated Debt Auction Processing System (ADAPS) to support its primary government debt auctions. BTr has requested a review of this system to ascertain its relevance and functionality as compared to international norms and standards. The expert will review the ADAPS system and provide a diagnostic regarding the ability of the system to meet BTr s operating needs. If required, the consultant will provide recommendations for upgrades to or replacement of the system to ensure consistency with the overall upgrade of BTr s operations.
7. The expert will have at least 15 years of experience in a senior position at a national treasury with a focus on primary issuance and treasury auction systems; and at least 5 years of relevant consulting experience, mostly in Southeast Asia. The duration of this consultancy will be a total of 22 working days on a continuous basis starting in January 2015. The expert will report to the national treasurer and other relevant officials as well as the ADB project officer.
8. International securities clearing, settlement, and custody expert (individual or a firm, 22 person-days continuous) BTr utilizes a Registry of Scriptless Securities (ROSS) and has requested a review of this system to ascertain its relevance and functionality as compared to international norms and standards. The expert will review the ROSS and provide a diagnostic regarding the suitability of the system, in terms of appropriateness and cost, to meet the needs of BTr operations. Consideration will be given to the proposed expanded role of primary dealers and their privileges and responsibilities, including the possible use of ROSS to support an inter-dealer repo market. If required, the consultant will provide recommendations for upgrades or replacement of the system to ensure consistency with BTr s operations.
9. The expert will have at least 15 years of experience in a senior position at a national treasury with a focus on primary issuance and securities registries; and at least 5 years of relevant consulting experience, mostly gained in Southeast Asia. The duration of this consultancy will be a total of 22 working days on a continuous basis starting in January 2014. The expert will report to the national treasurer and other relevant officials as well as the ADB project officer.
10. International treasury information technology specialist (individual or a firm,
22 person-days continuous). The objective of this engagement is to improve BTr s underlying management information systems. The expert will work with BTr s national and international advisors to review and evaluate BTr s current treasury information management systems and to perform a needs assessment. The expert will provide recommendations for improvement including, if necessary, the identification of a suitable vendor supplied treasury management system.
11. The expert shall have at least 15 years of experience in a senior position at a national treasury with a focus on IT and information management. In addition, the expert will have at least 5 years of relevant consulting experience a majority of which was gained in SE Asia. The duration of this consultancy will be a total of 22 working days (one month) on a continuous basis starting in November 2014. The expert will report to the national treasurer and other relevant officials as well as the ADB project officer.
12. International capital markets specialist (up to four experts, individually or through a firm, 40 person-days intermittent). The objective of this engagement is to provide capacity development to BTr, and market stakeholders, to support the introduction of new treasury processes. The expert(s) will work with BTr and its national and international advisors to identify capacity development needs associated with BTr s emerging reform agenda with a specific emphasis on understanding financial markets and financial processes. This capacity development is expected to generate knowledge products that can be used to build stakeholder consensus for the proposed reforms. Initial discussions identified the following areas of interest: a contrast between multiple- and single-price auctions, development of benchmark securities and yield curves, conduct of switch auctions, repo markets, and primary dealer liquidity facilities.
13. The expert(s) will deliver knowledge products to the national treasurer as described above, along with a written knowledge dissemination plan and stakeholder feedback mechanism. The knowledge products will include a thorough definition and description of the process, the advantages the process brings to BTr and end investors, the experience of other countries, and any related risks. The dissemination plan will include capacity development or consensus-building workshops as requested by BTr, as well as a feedback mechanism to assess the usefulness of the outreach.
14. The expert(s) will have at least 15 years of experience working with a global bank as a debt market expert and/or practitioner with a specialty in the assigned topic. The duration of this consultancy will be a total of 40 working days on an intermittent or continuous basis starting in June 2014. The expert(s) will report to the national treasurer and other relevant officials, and the ADB project officer.
15. International or national legal expert for repurchase agreements (firm, output based contract).The BTr has initiated a program to improve its cash management. In conjunction with this project, BTr will implement complimentary reforms to deepen and diversify the capital market including the introduction of a domestic repo market.
16. The objective of this technical assistance is to build on completed diagnostics and ongoing stakeholder consultations to introduce a domestic repurchase agreement that conforms to international conventions and standards. The expert will provide support to BTR s efforts to introduce the global master repurchase agreement (GMRA) to the Philippine capital market by continuing stakeholder consultations and providing technical advice. The consultancy will be an output-based contract with the deliverables to be identifi
|Responsible ADB Officer||Schuster, Stephen R.|
|Responsible ADB Department||Southeast Asia Department|
|Responsible ADB Division||Public Management, Financial Sector and Trade Division, SERD|
Bureau of the Treasury
Palacio del Gobernador
|Concept Clearance||16 May 2014|
|Fact Finding||14 Feb 2014 to 14 Feb 2014|
|Approval||17 Sep 2014|
|Last Review Mission||-|
|Last PDS Update||29 Sep 2017|
|Approval||Signing Date||Effectivity Date||Closing|
|17 Sep 2014||12 Mar 2015||12 Mar 2015||30 Oct 2016||30 Oct 2017||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||500,000.00||100,000.00||0.00||0.00||0.00||600,000.00||17 Sep 2014||423,859.03|
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|
|Strengthening Treasury Operations and Capital Market Reform: Technical Assistance Report||Technical Assistance Reports||Sep 2014|
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.
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.
No tenders for this project were found.
No contracts awarded for this project were found
None currently available.