This knowledge and support technical assistance (TA) responds to Asian Development Bank (ADB) developing member country (DMC) requests to stimulate inclusive and sustainable growth and service delivery by strengthening public sector capacity. The TA supports ADB's Strategy 2030 Operational Plan for Priority 6 on strengthening governance and institutional capacity. The TA will build on two previous TA projects: Enhancing Governance and Capacity Development as a Driver of Change, and the Governance and Capacity Development Initiative (Phase 2).
|Project Name||Institutional Strengthening and Capacity Development to Enhance Service Delivery|
Papua New Guinea
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Governance and capacity development
|Sector / Subsector||
Public sector management / Public administration - Public expenditure and fiscal management
|Gender Equity and Mainstreaming||No gender elements|
This knowledge and support technical assistance (TA) responds to Asian Development Bank (ADB) developing member country (DMC) requests to stimulate inclusive and sustainable growth and service delivery by strengthening public sector capacity. The TA supports ADB's Strategy 2030 Operational Plan for Priority 6 on strengthening governance and institutional capacity. The TA will build on two previous TA projects: Enhancing Governance and Capacity Development as a Driver of Change, and the Governance and Capacity Development Initiative (Phase 2). The TA team will add value to ongoing and forthcoming programs and projects by supporting DMCs through ADB operations departments in (i) preparing governance risk assessments (GRAs) at the country level and sector level to inform country partnership strategies (CPS) and enable ADB's shift toward country systems; and (ii) providing knowledge-sharing solutions and institutional capacity activities in selected DMCs to overcome complex governance challenges and promote innovation and learning.
The TA will contribute to improved alignment between ADB public sector management (PSM) operations and ADB strategy and policies on PSM, targeting institutional performance and capacity development. It will lead to better-integrated upstream PSM operations and downstream sector support to add value to ADB programs and projects. The TA will address, in part, weakening performance in project quality that a forthcoming ADB evaluation report highlights. The TA is included in the 2020 Management-approved results-based work plan of the Sustainable Development and Climate Change Department.
|Project Rationale and Linkage to Country/Regional Strategy||
Strategy 2030 recognizes that managing the challenges and opportunities brought about by a changing global and regional landscape requires strengthening governance and institutional capacity in DMCs. ADB country performance assessments indicate that public sector performance in Asia and the Pacific has improved overall, but significant challenges remain. Individual countries present varied pictures of institutional performance, and this diversity is made evident by the differing outcomes of standardized parameters measuring governance and institutional capacity. However, establishing adequate _learning channels_ presents a challenge because of the tacit nature and granularity of much of the relevant information and experience. In this regard, ADB is well-positioned to draw on its regional experience in global networks, its convening power, its experience in interdisciplinary approaches to PSM, and its ability to combine technical knowledge with development finance to catalyze institutional change and reform in DMCs.
Governance outcomes and sustainable development outcomes are intrinsically linked. A country's governance and institutional capacity affect the way governments perform and their ability to achieve all Sustainable Development Goals (SDGs), including those on climate change, gender, and infrastructure. By prioritizing governance and institutional capacity in DMCs, ADB is aligning its aspirations for Asia and the Pacific with the SDGs. SDG 16 on governance recognizes that the worldwide governance agenda remains unfinished and calls on countries to build effective, accountable, and inclusive institutions at all levels; promote the rule of law; enhance government transparency; and reduce corruption.
ADB experience. ADB has several mutually reinforcing approaches to supporting governance and boosting institutional capacity in DMCs. These include (i) supporting public management reforms and financial stability through PSM operations; (ii) focusing on governance and institutional actions that promote effective, timely, and corruption-free service delivery; and (iii) strengthening country systems and standards. Rather than viewing these as separate operational areas, ADB is coordinating actions across all three to enable more integrated solutions to DMCs and greater alignment of public and private sector operations.
ADB has developed separate operational procedures to recognize the complementarity of governance and capacity development. For instance, ADB's operational plan for governance, the Second Governance and Anticorruption Plan (GACAP II), is fundamentally a diagnostic tool that aims to strengthen government institutions in DMCs by focusing on three core areas: public financial management (PFM), procurement, and combating corruption. These areas affect ADB operational performance and quality as well as DMC development effectiveness. The review of GACAP II in 2013 and a learning note commissioned by the Governance Thematic Group of the Sustainable Development and Climate Change Department (SDTC-GOV) in 2019 to anchor future directions on delivering Strategy 2030 and achieving GACAP II outcomes remain relevant and are integral to the delivery of the operational priorities. Yet results have been mixed and there is evidence of weak commitment to and ownership of GACAP II across country teams. The review also highlights that while risk assessments, having elevated governance issues through PFM, procurement, and anticorruption areas in countries, sectors, and projects, need to be further strengthened and the monitoring of risk management plans need to be more consistent.
Lastly, approaches to addressing institutional strengthening and capacity issues continue to evolve. There is increasing importance assigned to the country-specific context in which institutions operate and the ability of stakeholders to adapt to change as the outcomes of capacity development processes. Development partners are increasingly looking beyond training and technical advisory services to DMCs as drivers of change and transformation, alongside strengthening the use of country systems to enhance institutional performance. The 2007 Medium-Term Framework and Action Plan for capacity development governs ADB's approach to capacity development. ADB reviewed the framework in 2016 and committed to strengthening its implementation in operations, broadening the base of recommended good practices, and strengthening the quality-at-entry review process for the selection of capacity development support. This is particularly important across all DMCs, but especially across DMCs with access to the Asian Development Fund (ADF), where returns are potentially much higher given the weaker institutional base of such DMCs.
ADB often delivers governance and institutional support to DMCs as a component of a sector program or project, and not as a stand-alone activity. A forthcoming ADB evaluation report (footnote 6) highlights that while the success rate of PSM operations remains high (91% on average during 2017 2019, down 1 percentage point from 2016 2018), the success rate of sovereign operations fell to 71% from 77% on average across the same 3-year time periods. Similarly, projects with governance and/or capacity development as a theme declined to from 74% to 68% of all projects during that time. This TA will play an important role in mainstreaming governance by supporting GRAs, which will be of increasing relevance under the context of the coronavirus disease (COVID-19) pandemic and post-pandemic operations, where such assessments will be even more carefully reviewed.
ADB value addition. SDTC-GOV has supported ADB's governance and capacity development strategies in operations since 2009 through two TA projects (para. 1). These TA projects have assisted in elevating governance and capacity development as a corporate priority at ADB. While mainstreaming GRAs has become widespread, it is important to build institutional capacity to shape specific organizational development processes. However, building institutional capacity has yet to become a standard feature of ADB operations. The overall success of these TA projects hinged on the flexibility to respond to operational demands and connect TA activities to CPS, sector assessments, sector road maps, and longer-term operations to address DMC governance and capacity issues. ADB has been successful in combining sound diagnostics and close collaboration with DMC stakeholders with adept use of operational modalities. This TA will build on these gains and upscale emerging good practices, learning from and sharing innovative practices in DMCs and globally.
|Impact||Public service delivery in selected DMCs improved (ADB Strategy 2030)|
|Description of Outcome||Governance and institutional capacity in selected DMCs improved|
|Progress Toward Outcome|
|Description of Project Outputs||
Governance risk and sector assessments for selected DMCs completed
Knowledge of governance and institutional capacity for DMCs increased
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Geographical Location||Bangladesh - Nation-wide; Kazakhstan - Nation-wide; Mongolia - Nation-wide; Myanmar - Nation-wide; Papua New Guinea - Nation-wide; Sri Lanka - Nation-wide; Timor-Leste - Nation-wide|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||ADB will engage consultants following the ADB Procurement Policy (2017, as amended from time to time) and its associated project administration instructions and/or staff instructions. The TA will require 17 person-months of international and 11.5 person-months of national consultant inputs with expertise in governance, PSM, PFM, procurement, anticorruption, and/or capacity and institutional development, operating within and across sectors and themes. Consultants will be engaged either either through individual consultant selection or through a firm (using consultant qualification selection for small contracts). SDTC-GOV will manage all consultants unless otherwise agreed with operations departments. Where appropriate, output-based contracts will be considered for administrative efficiency and for a simplified disbursement process.|
|Responsible ADB Officer||Rahemtulla, Hanif A.|
|Responsible ADB Department||Sustainable Development and Climate Change Department|
|Responsible ADB Division||SDTC-GOV|
Asian Development Bank
6 ADB Avenue,
Mandaluyong City 1550, Philippines
|Concept Clearance||27 Mar 2020|
|Approval||18 May 2020|
|Last Review Mission||-|
|Last PDS Update||19 May 2020|
|Approval||Signing Date||Effectivity Date||Closing|
|18 May 2020||-||18 May 2020||31 May 2023||-||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|1,000,000.00||0.00||0.00||0.00||0.00||0.00||1,000,000.00||18 May 2020||67,494.36|
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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|Title||Document Type||Document Date|
|Institutional Strengthening and Capacity Development to Enhance Service Delivery: Technical Assistance Report||Technical Assistance Reports||May 2020|
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