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
Marshall Islands -
Modality
- Grant
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Sector
- Public sector management
Related Projects
| Project Name | Public Financial Management Project | ||||||||
| Project Number | 50295-001 | ||||||||
| Country | 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, which serves as the overall Country Partnership Strategy for the RMI, 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. | ||||||||
| Impact | More effective governance achieved | ||||||||
| Project Outcome | |
|---|---|
| Description of Outcome | Public financial management improved |
| Progress Toward Outcome | A review mission was held from 29 to 30 January 2019 and the project is progressing well and on track. The Reform Coordination Unit (RCU) has been established, fully staffed and operational. Progress on the project has broadly been satisfactory since project effectiveness on 17 October 2017. |
| Implementation Progress | |
| Description of Project Outputs | The MOF''s institutional capacity to implement the PFM Reform Roadmap strengthened The MOF''s institutional capacity to implement SOE reforms strengthened |
| Status of Implementation Progress (Outputs, Activities, and Issues) | 2018 Reform initiatives undertaken contributed to 8 reform components in the roadmap namely:(1) Strengthened PFM Legal and Policy Framework; (2) Improved Cash Management; (3) Improved LG Financial Management; (4) PFM Reform Communications and Training; (5) Improving Management of GRMI Embassy Imprest Accounts; (6) Improved Budgeting Framework; (7) Introduction of a Performance Based Management Framework; and (8) Annual Reporting by LMs.2019 The below outputs contribute to 9 reform components of the roadmap:Strengthened PFM Legal and Policy Framework, Improving management of GRMI Embassy, Improved Payroll Management, Strengthened Asset Management, Strengthened Procurement Management, Strengthened External Audit Function, Improved Cash Management, PFM Reform Communications and Training, and Strengthened External Audit Function(1) Improving management of GRMI Embassy(2) Improved Payroll Management(3) Strengthened Asset Management(4) Strengthened Procurement Management(5) Strengthened External Audit Function(6) Development and rollout of a governmental accounting course based on US GAAP(7) Continuing support on implementation of new procedures manual rolled out in 2018 and 2019 as part of the transition periodThe RCU conducted 12 trainings and workshops in 2018. Of the 281 attendees for these training sessions, 126 (or 45%) were female.For 2019, 5 trainings were conducted for Improving management of GRMI Embassy with total no. of attendees: 19 (13 women or 68%)MOF overall estimate (Updated December 2019) Female 39, Male 56 1 Female Master's Degree(1 Business Administration/HR, Finance & Accounting)9 Female Bachelor's Degree(2 Accounting; 2 International Business marketing & management, 2 Business Admin, 1 Entrepreneurship, 1 Communications, 1 Economics) 15 Female- AA Degree (9 liberal Arts, 6 Business Admin)2 Male Master's Degree(1 Business Administration, 1 Business/Development Management)1 Male Bachelor's Degree(1 BS in Accounting)22 Male AA Degree(5 Liberal Arts; 10 Business Admin, 1 General Education, 2 Computer Studies, 3 Accounting, 1 Nursing)MOF overall estimate (Updated December 2019) Female 39, Male 56 1 Female Master's Degree(1 Business Administration/HR, Finance & Accounting)9 Female Bachelor's Degree(2 Accounting; 2 International Business marketing & management, 2 Business Admin, 1 Entrepreneurship, 1 Communications, 1 Economics) 15 Female- AA Degree (9 liberal Arts, 6 Business Admin)The Fiscal Responsibility and Debt Management Act that has been through the first Public Hearing on October 12.All of the documents regarding the FRDMA were reviewed and approved by Minister Alfred and Secretary May. This information was also included in the RCU June 2020 report which was provided to MOF and for the Secretary to provide to the PFM Steering Committee as appropriate. For this legislation to move forward it does not require PFM Steering Committee approval, and this committee is aware of the progress of the legislation. FRDMA Legislation waiting for final comments from Attorney General.The Fiscal Responsibility legislation is scheduled to go for third and final reading in Nitijela next week, however with only one more sitting day and several other pressing matters it is not clear if this will proceed -- however as noted this was approved by Cabinet in March 2020 and also approved to be sent to Nitijela. At this time there are some new proposed revisions to this legislation but the Minister has indicated these will be entertained later this year.This legislation does not require PFM Steering Committee approval, and this committee is aware of the progress of the legislation. The Cabinet is now moving forward with the next steps regarding this legislation once all comments (minor comments regarding wording) have been addressed by RCU and MOF. Ongoing review of current revenue module and of the 2014 tax legislation proposals.PFM Steering Committee has been updated on progress through milestone 6 and will be updated on milestone 7 at the next scheduled meeting. Work is focusing on compliance and other issues as outlined in milestone 7 reportSEVENTH MILESTONE (Tax December 2020/Report Attached) (Draft) Draft report (Milestone 7) covering assistance with: Taxpayer services, communication, taxpayer education FMIS deliverables for the Tax Division and remaining gaps Compliance risk management for one key risk Compliance plan for three large importers possibly under-declaring GRT Update of tax reform timeline to December 2022 Information sharing with Customs Division Rolling out Taxation Audit Training ManualSIXTH MILESTONE (Tax October 2020/Report Attached)Outlines areas for further work in area of tax including: Staffing, competency framework and training Enforcement action when taxpayers don't file and pay Implementation of audit case selection procedures Taxpayer services, communication, taxpayer education Automation / computerization of procedures, including a deeper analysis of what FMIS will provide for the Tax Division, what will be the remaining gaps, and thus assess the need for an additional revenue management system Further study and assessment about what is possible with increasing rates of sin tax Compliance risk management Gold card rewards for taxpayers with good compliance Review, update and implement the timeline for implementing administrative reforms (see Appendix 3): Time-line summary of road map of compliance improvement activities) Information sharing with Customs Unit Referrals to the Attorney General for prosecution Review of debt to determine what is collectible Rollout of Taxation Audit Training Manual.(1) SOE Monitoring Unit SOEMU formally established by Cabinet Paper May 11 2018 Current staff (3),(2) CSO Process and Framework 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 December 2019(a) These outputs encompass2 PFM roadmap reforms:" Improved SOE Oversight" PFM Reform Communications and Training(1) SOE Monitoring Unit SOEMU formally established by Cabinet Paper May 11 2018 Current staff (3),(2) CSO Process and Framework 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 December 2019(a) These outputs encompass2 PFM roadmap reforms:" Improved SOE Oversight" PFM Reform Communications and TrainingFor 2020, share of women directors on SOE is at 27.5%. Cumulative share from 2018 to 2020 is 23.22%. |
| 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 is expected to mobilize 22 person-months of a senior individual international consultant as Advisor to the Ministry of Finance. Also, four individual consultants will be recruited: two senior national consultants for 33 person-months each and two international consultants for 22 person-months each. For state-owned enterprise reforms, the project is additionally expected to mobilize 6 person-months each of 2 individual international consultants. |
| Procurement | Not required. |
| Responsible ADB Officer | Rabanal, Rommel F. |
| Responsible ADB Department | Pacific Department |
| Responsible ADB Division | PASP |
| Executing Agencies |
Ministry of Finance [email protected] P.O. Box D, Majuro MH 96960 Republic of the Marshall Islands Ministry of Finance P.O. Box D, Majuro MH 96960 Republic of the Marshall Islands |
| 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 | 16 Jun 2021 |
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 Dec 2021 | - |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 2.30 | Cumulative Contract Awards | |||
| ADB | 2.00 | 15 Oct 2021 | 1.99 | 0.00 | 100% |
| Counterpart | 0.30 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 15 Oct 2021 | 1.99 | 0.00 | 99% |
| 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 Dec 2021 | - |
| Financing Plan | Grant Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 0.50 | Cumulative Contract Awards | |||
| ADB | 0.50 | 15 Oct 2021 | 0.50 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 15 Oct 2021 | 0.50 | 0.00 | 99% |
| 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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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 |