Marshall Islands : Public Financial Management Project

Sovereign Project | 50295-001

Project Details

  • Project Officer
    Narain, Ashish
    Sectors Group
    Request for information
  • Country/Economy
    Marshall Islands
  • Sector
    • Public sector management
Project Name
Public Financial Management Project
Project Number
50295-001
Country / Economy
  • Marshall Islands
Project Status
Active
Project Type / Modality of Assistance
  • Grant
Source of Funding / Amount
Grant 0547-RMI: Public Financial Management Project
Source Amount
Asian Development Fund US$ 2.00 million
Grant 0658-RMI: Public Financial Management Project (additional financing)
Source Amount
Asian Development Fund US$ 500,000.00
Grant 0795-RMI: Public Financial Management Project (Second Additional Financing)
Source Amount
Asian Development Fund US$ 2.00 million
Strategic Agendas
  • Inclusive economic growth
Drivers of Change
  • Gender Equity and Mainstreaming
  • Governance and capacity development
  • Knowledge solutions
  • Partnerships
Sector / Subsector
  • Public sector management / Public expenditure and fiscal management - Reforms of state owned enterprises

Gender
Some gender elements
Description
The project will enhance the institutional capacity of the Ministry of Finance (MOF) to effectively implement PFM and state-owned enterprise (SOE) reforms.
Project Rationale and Linkage to Country/Regional Strategy
The project is consistent with ADB's Pacific Approach 2016-2020 and supports (i) PFM improvements in order to achieve the outcome of greater resilience to external economic and financial shocks, and (ii) increased financial efficiency of SOEs in order to achieve the outcome of a more conducive environment for business. The project remains aligned with Pacific Approach 2021-2025, which serves as the current Country Partnership Strategy for the RMI, in prioritizing PFM improvements as a means to achieve a strategic objective of preparing for and responding to shocks, toward a broader goal of building resilience.
Impact

More effective governance achieved

Project Outcome

Description of Outcome

Public financial management improved

Progress Toward Outcome
The Reform Coordination Unit (RCU) remains fully staffed and operational. Progress on the project is satisfactory since project effectiveness on 17 October 2017 and project activities remain on track.

Implementation Progress

Description of Project Outputs

The MOF's institutional capacity to implement the PFM Reform Roadmap strengthened

MOF's institutional capacity to implement SOE reforms strengthened

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

Currently, there are 3 staff.

Ongoing work with 3 targeted SOEs to assess legitimacy of CSOs through June 2021 SOE business plans (draft) submitted (10 of 11 SOEs) as per SOEMU deadlines. Although no formal outcomes can be reported in relation to CSOs, at this time, some progress has been made in relation to MAWC, who are now likely to be the first to achieve a formalized CSO Agreement. Tax reform analyses and reports completed as of 31 January 2021. The Team Leader continues to work as part of a working group (ADB, PFTAC, World Bank, MOF) to discuss and continue to develop a roadmap for implementing part of the tax reform recommendations that have been made under this project. In March 2023, the RCU closely coordinated with a World Bank in-country mission on the status of ongoing PFM and SOE reforms for potential further collaboration toward supporting reform implementation.

Ongoing. 8 Female: Bachelors Degree; 14 Female: AA Degree; 4 Male: Bachelors Degree; 26 Male: AA Degree.

Ongoing. MOF overall estimates are: Female 35, Male 65

Fiscal Responsibility and Debt Management Act and related regulations was enacted effective 8 June 2021. Ongoing, reform initiatives undertaken contributed to the Introduction of a Performance Based Management Framework. a. PFM-RCU edited/reviewed the Financial Management Act (Amended) drafted by the World Bank-PFM advisors, which was recently approved by the Nitijela; PFM-RCU edited/reviewed the revised Procurement Regulations PUBLIC PROCUREMENT CODE (Act) 2022 (World Bank), awaiting submission to Cabinet for review; Participated in all budget consultations with line ministries and agencies in relation to the FY2023 Appropriation.

b. Completed initial draft of RMI Financial Sector Development Plan in coordination with the RMI Banking Commission; Facilitated and implemented costing of National Strategic Plan in coordination with UNICEF and Chief Secretarys office; Drafted and finalized National Investment Policy Statement (NIPS) 2022 Review Draft, consultations scheduled October/November with target of Cabinet Approval in December; Updated the Economic Policy Statement (EPS) for inclusion with the FY2023 Budget Submission.

c.Continued work with line Ministries and EPPSO to revise format for Ministry Strategic Plans linking annual budgets to NPS/FMIS and SDGs, several currently being drafted with others in various stages of review for approval.

d.Improved cash management, simplified cash monitoring template for Treasury and Accounting.

e.Strengthened procurement management, close coordination with World Bank project in designing an FMIS (Completed)

f.Participated in the rigorous As-Is To-Be Validation Workshops conducted by the team of consultants from Bisan, the new FMIS of the government. The objective of the workshops was to validate Bisan's conceptual understanding of the GRMI's current business process streams for expenditure and revenue management, and any peculiarities. The workshops presented prototypes of how GRMI's business process workflows and controls can be configured in the Bisan System. The Bisan system went live on 3 October 2022.

g.Strengthened asset management development of Fixed Asset Management Manual; draft Asset Management manual for SOEs has been prepared and is subject to review prior to implementation with SOEs during 2022.

h.Introduction of a performance-based management framework initial performance agreements signed with critical agencies.

i.Improved management of imprest accounts of all RMI embassies. Procedures Manual finalized.

j.PFM-RCU prepared/drafted management responses and corrective action plan for GRMI's audit findings and questioned costs from the FY2020 Single Audit. Coordinated with relevant ministries, agencies and SOEs in addressing the issues bringing down eleven initial findings to seven; PFM-RCU prepared/Drafted the Managements Discussion & Analysis of the GRMI's Single Audit for FY2020; PFM-RCU prepared/assisted the Accounting Department in the preparation of various schedules for the general ledger accounts of the national government in relation to the FY2021 Single Audit by Deloitte & Touche; PFM-RCU prepared/Assisted the Accounting Department in the reconciliation of various general ledger accounts of the national government for FY2022.

k.Trained the new Accounting Compact Officer and new Compact Fiscal Officer on grants management from April to May 2022.

l.PFM reform communications and training various publications, awareness-raising activities, training sessions.

m.Improved debt management. Debt Management training ongoing for MOF Management Team (ADB) with the goal of establishing a debt management unit under Improved Debt Management component.

Ongoing :Conducted an internal procurement training on 14 June 2022 involving key officers of the MOF. Conducted an MOF-wide preliminary procurement training on 2 August 2022 in preparation for the GRMI-wide procurement training.

Geographical Location
Nation-wide

Safeguard Categories

Environment
C
Involuntary Resettlement
C
Indigenous Peoples
C

Summary of Environmental and Social Aspects

Environmental Aspects
There will be no environmental impacts.
Involuntary Resettlement
In the absence of any civil works, the project will not result in any involuntary resettlement impacts.
Indigenous Peoples
The dominant population of the RMI is indigenous to the islands, and project activities are designed for the entire economy, with no differentiation in benefits accruing to any group.

Stakeholder Communication, Participation, and Consultation

During Project Design

The ultimate beneficiaries are the people of the RMI. The project objectives are aligned with the NSP, which was consulted within the RMI.

During Project Implementation
Information will be shared with the public as appropriate, on the PFM reforms. The RMI is launching a website on SOEs, which will provide information. PFM reports (like the PEFA) will be shared, unless considered confidential.

Business Opportunities

Consulting Services

The project has mobilized the following consultants: an international Advisor to the Ministry of Finance; three financial management specialists; and two senior national consultants.

For state-owned enterprise reforms, the project an international State-Owned Enterprise and Community Service Obligations Expert.

Procurement
Not required.

Contact

Responsible ADB Officer
Narain, Ashish
Responsible ADB Department
Sectors Group
Responsible ADB Division
Public Sector Management and Governance Sector Office (SG-PSMG)
Executing Agencies
Ministry of Finance, Banking and Postal Services

Timetable

Concept Clearance
26 Apr 2017
Fact Finding
19 Jun 2017 to 21 Jun 2017
MRM
15 Aug 2017
Approval
13 Oct 2017
Last Review Mission
-
Last PDS Update
19 Apr 2023

Funding

Grant 0547-RMI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
13 Oct 2017 17 Oct 2017 19 Oct 2017 30 Jun 2021 31 Mar 2022 27 Jul 2022
Financing Plan
  Total (Amount in US$ million)
Project Cost 2.30
ADB 2.00
Counterpart 0.30
Cofinancing 0.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 04 Jul 2024 1.99 0.00 100%
Cumulative Disbursements 04 Jul 2024 1.99 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Partly satisfactory

Grant 0658-RMI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Sep 2019 24 Sep 2019 26 Sep 2019 30 Jun 2021 31 Mar 2022 05 Jul 2022
Financing Plan
  Total (Amount in US$ million)
Project Cost 0.50
ADB 0.50
Counterpart 0.00
Cofinancing 0.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 04 Jul 2024 0.50 0.00 100%
Cumulative Disbursements 04 Jul 2024 0.50 0.00 100%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Partly satisfactory

Grant 0795-RMI

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Jul 2021 06 Aug 2021 27 Aug 2021 31 Dec 2024 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 2.30
ADB 2.00
Counterpart 0.30
Cofinancing 0.00
Grant Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 04 Jul 2024 2.00 0.00 100%
Cumulative Disbursements 04 Jul 2024 1.87 0.00 93%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory Satisfactory - Partly satisfactory

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 Access to Information Policy (AIP) 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
Public Financial Management Project: Audited Project Financial Statements (October 2021-September 2022) Audited Project Financial Statements May 2024
Public Financial Management Project: Audited Project Financial Statements (30 September 2020-30 September 2021) Audited Project Financial Statements Aug 2022
Grant Agreement (Special Operations) for Grant 0795-RMI: Public Financial Management Project (Second Additional Financing) Grant Agreement Aug 2021
Public Financial Management Project (Second Additional Financing): Report and Recommendation of the President Reports and Recommendations of the President Jul 2021
Public Financial Management Project (Second Additional Financing): Project Administration Manual Project/Program Administration Manual Jun 2021
Public Financial Management Project: Audited Project Financial Statements (30 September 2019-30 September 2020) Audited Project Financial Statements Apr 2021
Public Financial Management Project (Second Additional Financing): Procurement Plan Procurement Plans Apr 2021
Public Financial Management Project: Audited Project Financial Statements (January - September 2019 and Period from Inception 17 October 2017 - 20 September 2018) Audited Project Financial Statements May 2020
Grant Agreement (Special Operations) for Grant 0658-RMI: Public Financial Management Project - Additional Financing Grant Agreement Sep 2019
Public Financial Management Project (Additional Financing): Report and Recommendation of the President Reports and Recommendations of the President Aug 2019
Public Financial Management Project (Additional Financing): Project Administration Manual Project/Program Administration Manual Jul 2019
Public Financial Management Project: Audited Project Financial Statements (17 October 2017-30 September 2018) Audited Project Financial Statements Apr 2019
Grant Agreement (Special Operations) for Grant 0547-RMI: Public Financial Management Project Agreements Oct 2017
Public Financial Management Project: Procurement Plan Procurement Plans Oct 2017
Public Financial Management Project: Report and Recommendation of the President Reports and Recommendations of the President Sep 2017
Public Financial Management Project: Project Administration Manual Project/Program Administration Manual Aug 2017
Public Financial Management Project: Concept Paper Concept Papers Apr 2017
Public Financial Management Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Apr 2017

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 Access to Information Policy (AIP) 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
Financial Management Specialist Individual - Consulting Closed
CoA Advisor to the Ministry of Finance, Republic of the Marshall Islands Individual - Consulting Closed
Public Financial Management Project - Financial Management Specialist (2) Individual - Consulting Closed
Public Financial Management Project - HR Specialist (National) Individual - Consulting Closed
Public Financial Management Project - Community Service Obligation Costing Expert Individual - Consulting Closed
Public Financial Management Project - Advisor to the Ministry of Finance Individual - Consulting Closed
Public Financial Management Project - Financial Management Specialist (1) Individual - Consulting Closed
Public Financial Management Project - Public Finance Specialist (Budget) Individual - Consulting Closed

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
ADVISOR TO THE MINISTRY OF FINANCE Grant 0547 03 Aug 2021 CHRIS YANCKELLO | 439 EAST NELSON AVENUE ALEXANDRIA VA 22301 UNITED STATES Ministry of Finance, Banking and Postal Services 593,816.26
ADVISOR TO THE MINISTRY OF FINANCE REPUBLIC OF THE MARSHALL ISLANDS Grant 0547 17 Jan 2021 CHRIS YANCKELLO | 439 EAST NELSON AVENUE ALEXANDRIA VA 22301 UNITED STATES Ministry of Finance Banking and Postal Services 577,250.00
HUMAN RESOURCES SPECIALIST (NATIONAL); REVISED CONTRACT AMOUNT IS $104 500 PER VO Grant 0547 17 Jan 2021 CHRISTINA DEBRUM | PO BOX 733 MAJURO 96960 MARSHALL ISLANDS Ministry of Finance Banking and Postal Services 104,500.00
PUBLIC FINANCE SPECIALIST (BUDGET)NATIONAL CONSULTANT; REVISED CONTRACT AMOUNT PER VO Grant 0547 17 Jan 2021 AYAKO YAMAGUCHI-ELIOU | PO BOX 3538 MAJURO MARSHALL ISLANDS Ministry of Finance Banking and Postal Services 144,500.00
FINANCIAL MANAGEMENT SPECIALIST(1) UNDER GRANT 0547-RMI: PUBLIC FINANCIAL MANAGEMENT SPECIALIST Grant 0547 11 Jan 2021 NORI JEAN LOPEZ | DELAP MAJURO 96960 PHILIPPINES Ministry of Finance Banking and Postal Services 243,006.00
FINANCIAL MANAGEMENT SPECIALIST(2) UNDER GRANT 0547-RMI: PUBLIC FINANCIAL MANAGEMENT PROJECT Grant 0547 21 Jan 2021 MARIA ROSARIO CHAP JABAGAT | UNIT A3207 GATEWAY GARDEN HEIGHTS PIONEER STREET MANDALUYONG CITY 1550 PHILIPPINES Ministry of Finance Banking and Postal Services 282,370.00
STATE-OWNED ENTERPRISE MONITORING EXPERT UNDER G0547-RMI: PUBLIC FINANCIAL MANAGEMENT PROJECT Grant 0547 21 Jan 2021 DAVID ANTHONY DRAKE | PO BOX 2162 GRACEVILLE QUEENSLAND 4075 AUSTRALIA Ministry of Finance Banking and Postal Services 450,250.00
TAX EXPERT (TECHNICAL) Grant 0658 08 Dec 2020 STEPHEN MICHAEL GERARD SMITH | 9 GLENCOE AVENUE HAMLYN TERRACE NSW AUSTRALIA Ministry of Finance Banking and Postal Services 139,745.97
STATE-OWNED ENTERPRISE MONITORING EXPERT UNDER G0547-RMI: PUBLIC FINANCIAL MANAGEMENT PROJECT Grant 0547 14 Feb 2019 DAVID ANTHONY DRAKE | PO BOX 2162 GRACEVILLE QUEENSLAND 4075 AUSTRALIA Ministry of Finance 382,000.00
HUMAN RESOURCES SPECIALIST (NATIONAL) Grant 0547 25 Jun 2018 CHRISTINA DEBRUM | PO BOX 733 MAJURO 96960 MARSHALL ISLANDS Ministry of Finance 174,500.00
ADVISOR TO THE MINISTRY OF FINANCE REPUBLIC OF THE MARSHALL ISLANDS Grant 0547 10 Nov 2017 CHRIS YANCKELLO | 439 EAST NELSON AVENUE ALEXANDRIA VA 22301 UNITED STATES 462,000.00
ADVISOR TO THE MINISTRY OF FINANCE Grant 0547 03 Aug 2021 CHRIS YANCKELLO | 439 EAST NELSON AVENUE ALEXANDRIA VA 22301 UNITED STATES Ministry of Finance, Banking and Postal Services 593,816.26

Procurement Plan

Title Document Type Document Date
Public Financial Management Project (Second Additional Financing): Procurement Plan Procurement Plans Apr 2021
Public Financial Management Project: Procurement Plan Procurement Plans Oct 2017