The Pacific Financial Technical Assistance Centre (PFTAC) of the International Monetary Fund (IMF) was established in 1993 to support Pacific countries with improving economic management and achieving sustainable economic growth. The PFTAC provides technical assistance (TA) and training in five core areas: (i) public financial management (PFM), (ii) revenue administration, (iii) macroeconomic management, (iv) financial sector supervision, and (v) macroeconomic statistics.
|Project Name||Pacific Financial Technical Assistance Centre, 2016-2022|
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
Private sector development
|Sector / Subsector||
Finance / Central banking systems
Public sector management / Economic affairs management - Public expenditure and fiscal management
|Gender Equity and Mainstreaming||Some gender elements|
|Description||The Pacific Financial Technical Assistance Centre (PFTAC) of the International Monetary Fund (IMF) was established in 1993 to support Pacific countries with improving economic management and achieving sustainable economic growth. The PFTAC provides technical assistance (TA) and training in five core areas: (i) public financial management (PFM), (ii) revenue administration, (iii) macroeconomic management, (iv) financial sector supervision, and (v) macroeconomic statistics.|
|Project Rationale and Linkage to Country/Regional Strategy||The TA is consistent with the Pacific Approach, 2016 -2020 of the ADB, as the PFTAC contributes to reducing costs and managing risks through improved regulatory frameworks, government systems, and capacity creating efficiencies in public management and enabling private sector value creation. ADB's Pacific Regional Operations Business Plan, 2016 -2018 provides for continued ADB support for the PFTAC, with an $800,000 contribution over the PFTAC's Phase V, 2016 -2022. This support leverages total expected financing of $35 million from other partners (Australia, the European Union, New Zealand, and potentially other sources) and PFTAC member countries. Since 1994, ADB has provided $6.4 million to the PFTAC under 10 consecutive regional TA projects, complementing other development partners' support. The most recent support provided was for 2011- 2016. ADB's continued funding is justified given long-term capacity gaps in the Pacific and PFTAC's record, and ability to efficiently and effectively deliver timely, high-quality technical advice, along with successful capacity development programs, to Pacific DMCs.|
The Project is aligned with:
1. Macroeconomic and fiscal resilience to natural disasters and adverse economic developments strengthened
2. Macro-financial sustainability promoted
3. Growth and inclusiveness facilitated
|Description of Outcome||Capacity to design and implement prudent macroeconomic, PFM and financial sector policies and systems improved|
|Progress Toward Outcome||The expected outcome was strengthened institutional and human resource capacity of Pacific island countries' finance ministries and central banks to improve economic and financial management in Pacific island countries. Progress towards this outcome is provided in Annex I of PFTAC's program document for its fifth phase (2016 2022), which shows improvements to regulatory frameworks, procedures, and policies across all five TA sectors and across all Pacific countries.|
|Description of Project Outputs||
1. Public financial management systems strengthened
2. Broader-based and more efficient revenue systems established
3. Macroeconomic analysis and policy improved
4. Management and resolution of risks in financial institutions improved
5. More timely and reliable economic statistics produced
|Status of Implementation Progress (Outputs, Activities, and Issues)||The outputs reflect all activities proposed by PFTAC (consistent with prior financing cycles). The five outputs are: (i) PFM is strengthened, (ii) revenue systems developed to be more broadly-based and efficient, (iii) identified financial system risk factors addressed and minimized, (iv) more timely and reliable economic statistics, and (v) improved macroeconomic analysis. Performance against output indicator is mixed. Out of five countries for which two Public Expenditure and Financial Accountability assessments were conducted and the second one fell within the TA period, four (Cook Islands, Samoa, Solomon Islands, Timor-Leste) have consistently improved scores across the targeted indicators and only Vanuatu received lower rankings in several indicators.|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||ADB has provided a total of $5.4 million since 1994 under 9 consecutive regional technical assistance projects. The most recent support provided was for the period 2008-2011. The continued funding by ADB has been based on a successful track record, and the ability of PFTAC to deliver timely, high quality, cost effective technical advice to Pacific countries along with a number of successful capacity development programs. The original duration of the TA (2011-2014) was extended to cover the entire funding cycle up to mid-2016 and fully align the TA outputs with PFTAC's five-year work plan. No additional financing was required since other partners' contributions were sufficient to cover the entire program cycle. During the 2016 PFTAC steering committee meeting, PFTAC presented a concept paper for its fifth financing cycle, 2016 -2022, based on an external midterm review of Phase IV and consultations with the representatives of various institutions of Pacific developing member countries (DMCs) and development partners, including the Asian Development Bank (ADB). This was subsequently developed into a program document.|
|During Project Implementation||Monitoring of the TA will draw on annual PFTAC reports against the program document's results framework for Phase V and quarterly activity updates. The IMF's results-based management system (Capacity Development Projects, Outputs, and Results Tracking System), to be implemented at the start of Phase V, will provide information on objectives, outcomes, verifiable indicators with baselines, milestones, and outputs. In addition, the program document for Phase V includes budget for an independent midterm evaluation, whose recommendations will feed into Phase V's second half and the design of Phase VI, subject to the continuous need for PFTAC assistance. ADB, together with other partners, will participate in the annual steering committee meetings to monitor and provide direction on strategic and operational issues. ADB liaises regularly with the PFTAC through regional and country-level coordination groups to avoid duplication and overlap in activities.|
|Consulting Services||The IMF will be responsible for PFTAC's managerial, technical, and administrative arrangements, including consulting services. The IMF (i) assigns the center coordinator (full-time staff member); (ii) selects resident advisors from its professional staff; (iii) hires short-term experts using IMF procedures, and draws on experts from its approved rosters; (iv) provides supervision and backstopping services; (v) provides administrative support; and (vi) manages the cost-sharing contributions of the development partners.|
|Procurement||No procurement of works is envisaged under the TA.|
|Responsible ADB Officer||Rabanal, Rommel F.|
|Responsible ADB Department||Pacific Department|
|Responsible ADB Division||PASP|
International Monetary Fund
|Concept Clearance||20 Sep 2016|
|Approval||18 Nov 2016|
|Last Review Mission||-|
|Last PDS Update||28 Mar 2018|
|Approval||Signing Date||Effectivity Date||Closing|
|18 Nov 2016||03 Jan 2017||03 Jan 2017||30 Apr 2022||-||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|800,000.00||0.00||0.00||0.00||0.00||0.00||800,000.00||18 Nov 2016||800,000.00|
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|Title||Document Type||Document Date|
|Pacific Financial Technical Assistance Centre, 2016-2022: Technical Assistance Report||Technical Assistance Reports||Oct 2016|
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.
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Evaluation Documents See also: Independent Evaluation
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ADB and PFTAC Strengthening Public Financial Management in PacificADB in partnership with the Pacific Financial Technical Assistance Centre (PFTAC) is helping Pacific governments better manage their public financial systems.
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