Marshall Islands: Public Financial Management Project
The project will enhance the institutional capacity of the Ministry of Finance (MOF) to effectively implement PFM and state-owned enterprise (SOE) reforms.
Project Details
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Project Officer
Rabanal, Rommel F.
Pacific Department
Request for information -
Country/Economy
Marshall Islands -
Sector
- Public sector management
Related Projects
| Project Name | Public Financial Management Project | ||||||||||||
| Project Number | 50295-001 | ||||||||||||
| Country / Economy | Marshall Islands |
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| Project Status | Active | ||||||||||||
| Project Type / Modality of Assistance | Grant |
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| Source of Funding / Amount |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Gender Equity and Mainstreaming Governance and capacity development Knowledge solutions Partnerships |
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| Sector / Subsector | Public sector management / Public expenditure and fiscal management - Reforms of state owned enterprises |
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| Gender Equity and Mainstreaming | 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 |
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| 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) | The MOF's institutional capacity to implement the PFM Reform Roadmap strengthened a. Strengthened PFM Legal and Policy Framework: Accounting Manual; Travel Procedures Manual; Continuing PFM roadmap briefings with Minister of Finance and PFM Reform Steering Committee and Chief Secretary; and Continuing coordinated discussions and informal working group of ADB (and RCU) IMF, World Bank and PFTAC under the Improved Tax Administration component. Fiscal Responsibility and Debt Management Act and related regulations was enacted effective 8 June 2021. b. Improved Budgeting Framework: facilitated finalization of the National Strategic Plan 2020-2030; ongoing (i) framework and templates design to align Sector Plans with Ministry Strategic Plans; (ii) closer integration of capital budgeting with recurrent budgets for ongoing operating and maintenance costs for FY23 budget process; (iii) work with PFTAC to improve the current Annual Budget Book and macro-forecasting; (iv) Ministries Portfolio Budgeting for FY23 budget. c. Annual reporting by line ministries: National Planning Framework and Key Performance Indicators 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. Improved payroll management: facilitated adoption of ADB funded HRMIS and its potential interface with the FMIS; Continuous RCU work with the FMIS vendor and MOF regarding the preparation for the migration from 4Gov to new FMIS for the FY2023 budget 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. Strengthened external audit function: pilot government accounting class k. Improved aid coordination: update of the Development Assistance Policy 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. Fiscal Responsibility and Debt Management Act and related regulations was enacted effective 8 June 2021. n. Improved tax administration: Project 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. The MOF's institutional capacity to implement SOE reforms strengthened SOE Monitoring Unit (SOEMU) formally established by Cabinet Paper May 11 2018 (current staff: 3)CSO Process established and principles of requesting and negotiating with SOEs regarding CSOs confirmed by Cabinet Paper May 11 2018. 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. |
| 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. |
| Responsible ADB Officer | Rabanal, Rommel F. |
| Responsible ADB Department | Pacific Department |
| Responsible ADB Division | PASP |
| Executing Agencies |
Ministry of Finance |
| 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 | 01 Sep 2022 |
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 | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 2.30 | Cumulative Contract Awards | |||
| ADB | 2.00 | 31 Aug 2022 | 1.99 | 0.00 | 100% |
| Counterpart | 0.30 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 31 Aug 2022 | 1.99 | 0.00 | 100% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | Satisfactory | Satisfactory | - | 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 | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 0.50 | Cumulative Contract Awards | |||
| ADB | 0.50 | 31 Aug 2022 | 0.50 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 31 Aug 2022 | 0.50 | 0.00 | 100% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | Satisfactory | Satisfactory | - | 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 | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 2.30 | Cumulative Contract Awards | |||
| ADB | 2.00 | 31 Aug 2022 | 1.83 | 0.00 | 92% |
| Counterpart | 0.30 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 31 Aug 2022 | 0.65 | 0.00 | 32% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | - | Satisfactory | Satisfactory | Satisfactory | - | 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.
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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.
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.
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ADB's Additional Financing to Further Improve Public Financial Management, SOE Reform in Marshall Islands
ADB has approved a $500,000 grant as additional financing for the ongoing Marshall Islands Public Financial Management Project that is improving public financial management and promoting SOE reform in the Pacific island country. -
ADB to Support Public Financial Management, SOE Reform in Marshall Islands
ADB's Board of Directors has approved a $2 million grant to help strengthen public financial management in the Marshall Islands.
Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | 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 | — |
| 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 | — |
| 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 | — |
| 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 | — |
| 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 | — |
| 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 | — |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Public Financial Management Project: Procurement Plan | Procurement Plans | Oct 2017 |