Marshall Islands: Public Financial Management Project

Sovereign Project | 50295-001

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

  • Project Officer
    Rabanal, Rommel F.
    Pacific Department
    Request for information
  • Country/Economy
    Marshall Islands
  • Modality
    • Grant
  • Sector
    • Public sector management

Related Projects

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
Asian Development Fund US$ 2.00 million
Grant 0658-RMI: Public Financial Management Project (additional financing)
Asian Development Fund US$ 500,000.00
Grant 0795-RMI: Public Financial Management Project (Second Additional Financing)
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 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

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 Mar 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 01 Apr 2022 2.00 0.00 100%
Counterpart 0.30 Cumulative Disbursements
Cofinancing 0.00 01 Apr 2022 2.00 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 -
Financing Plan Grant Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 0.50 Cumulative Contract Awards
ADB 0.50 01 Apr 2022 0.50 0.00 100%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 01 Apr 2022 0.50 0.00 99%
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 01 Apr 2022 1.85 0.00 92%
Counterpart 0.30 Cumulative Disbursements
Cofinancing 0.00 01 Apr 2022 0.25 0.00 13%
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.

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 (30 September 2019-30 September 2020) Audited Project Financial Statements 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
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 19 Sep 2020 02 Oct 2020
CoA Advisor to the Ministry of Finance, Republic of the Marshall Islands Individual - Consulting Closed 28 Feb 2020 12 Mar 2020
Public Financial Management Project - Financial Management Specialist (2) Individual - Consulting Closed 31 Oct 2017 06 Nov 2017
Public Financial Management Project - Financial Management Specialist (1) Individual - Consulting Closed 09 Aug 2017 19 Sep 2017
Public Financial Management Project - Advisor to the Ministry of Finance Individual - Consulting Closed 09 Aug 2017 12 Sep 2017
Public Financial Management Project - Public Finance Specialist (Budget) Individual - Consulting Closed 09 Aug 2017 26 Sep 2017
Public Financial Management Project - State-Owned Enterprise Monitoring Expert Individual - Consulting Closed 09 Aug 2017 22 Aug 2017
Public Financial Management Project - Community Service Obligation Costing Expert Individual - Consulting Closed 09 Aug 2017 22 Aug 2017
Public Financial Management Project - HR Specialist (National) Individual - Consulting Closed 09 Aug 2017 26 Sep 2017

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 —
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 —
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 —
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