PDP is part of a consortium for this three year £9.8 million program of technical support to the Ministry of Finance. The purpose of the program is to provide for effective implementation of public financial management reforms in key Afghan line ministries and at the provincial level.

PDP provided the services of a Program Budgeting Capacity Development and Change Management Adviser to undertake an assessment of the existing general budget capacity, existence and quality of strategy and existing TA of a sample of line ministries intended to be included in the next phase of the Program Budgeting (PB) roll-out. Primarily, this involved the provision of advice to the PB Advisors in MoF on PB roll-out and assessing institutional and management reforms in line ministries participating in PB and developing a strategy for institutional reform and change management for the rollout in additional line ministries.

PDP provided technical assistance to support the Administrative Reform and Civil Service Commission (IARCSC) in coordination with the Administrative Reforms Secretariat in public administration reform and to improve public service management of the front-line service delivery departments and government agencies. The purpose was to assist priority departments responsible for basic services to improve the performance of services delivered by:

• streamlining functions
• eliminating unnecessary activities, overlaps and duplications
• focusing resources on core services
• considering how electronic governance could assist
• developing sustainable capacity within the service delivery departments
• providing a basis for replication and scaling up of the service delivery improvement initiative.

A series of functional reviews was completed focusing on:

• improving management
• strengthening accountability
• maximising the use of information to increase accountability
• financial incentives and fiscal sustainability.

PDP provided specialist assistance to develop a fine chemicals inward investment promotion and export development strategy and marketing plan for the Armenian Development Agency (ADA). This involved assessing Armenia’s ability to compete for and secure foreign direct investment (including R&D activities) in the fine chemical sector, and benchmarking Armenia’s attributes against its competitors. The consultant also pinpointed intrinsic factors that discourage investment within the target sector and recommended appropriate actions and policy advocacy.

PDP organised and ran a study tour for staff of the Brazilian Ministry of Planning, Budget and Administration to examine public management approaches and innovations in Australia. Practical knowledge was imparted on Australian Government processes in the areas of planning, budgeting, financing, execution and reporting of the government's programs so that these could be used to improve similar processes in Brazil. Participants visited a variety of government agencies, including the Federal Department of Finance and Administration, where they were presented with material aimed at assisting with the preparation of Brazil’s Multi-Year Plan.

PDP evaluated the economic and social implications of implementing the Representative Areas Program (RAP) within the Great Barrier Reef Marine Park (GRBRMP), with a focus on the social and economic benefits of the RAP to relevant marine industries and Great Barrier Reef communities. The evaluation was to provide input into the development of the Draft Zoning Plan (DZP) for the GRBRMP. Specific tasks included producing a report outlining the cultural, economic and social importance of the main values associated with the GRBRMP at the local, regional, state, national and international level, taking into account all the community and industry stakeholders, and estimating the likely impact on these values with and without the implementation of the Draft Zoning Plan. A report detailed the configuration of candidate ‘green zones’ identified in the DZP and made recommendations for the Final Zoning Plan.

PDP Australia has been engaged by the Australian Agency for International Development (AusAID) until 2013 to provide economic analysis and advice services for short-term assignments. The duration of individual assignments may vary, from answering individual questions to longer term assignments including ones that may take place overseas, particularly in Papua New Guinea, the Pacific and Asia. 

The purpose of the Economics Advisory Panel is to enhance the quality and effectiveness of Australia’s aid program by providing high quality advice and analysis on economics related issues to Posts, regional programs and program enabling areas. Period offer members will help guide the implementation of best-practice approaches and supplement AusAID’s existing in-house advisory capacity where required.

The objectives of the Economics Advisory Panel are to contribute to the program quality, policy development and development effectiveness of AusAID programs through: 

(a)                 ensuring that economics related issues within AusAID’s initiatives are based on
                      international good practice, Australian and regional lessons learned, and insights
                      from regional donors. 
 
(b)                 assisting AusAID to keep up to date with trends and developments by building the
                      Agency's knowledgebase through participating in peer reviews, evaluations, research,
                      sharing experience and knowledge in formal and informal ways, and assisting the
                      Agency to apply this knowledge practically throughout its programs; and

(c)                 providing AusAID with access to high quality, timely advice and access to economics 
                     analysts and networks.

PDP provided expert assistance in the planning and development of a program of research and impact monitoring for the National Energy Management Program (NEMP) aimed at development and administration of Australia’s initiatives to encourage greater efficiency in energy use in all sectors of the economy and the community.

PDP organised and led a study tour for the Kazakhstan Government to Australia, to discuss the country’s public management practices and evaluate how best to apply the lessons to the Kazakh context. PDP arranged meetings with the Commonwealth Department of Finance, the Australian Public Service Commission, the New South Wales Departments of Health and Education and other government offices to discuss the current status of reform, the development of effective monitoring and evaluation, and strategies for managing change. A key focus was on management of the health and education sectors and integration of performance management and results-based budgeting into the public sector.

PDP prepared a scoping report defining six areas of intervention and AP Lands selected priorities. Phase II priorities were to prepare a detailed Economic Initiatives Action Plan, in consultation with AP Lands and stakeholders, focusing on realistic and sustainable Venture Development Plans in banking and finance, mining, agriculture and livestock, tourism and arts and craft. Guidance was also provided on accessing specialist expertise to assist with the implementation of the Venture Development Plans.

PDP prepared a Strategy and Action Plan (SAP) for the Anangu Pitjantjatjara Development Committee that resulted in a clear and agreed agenda and sequencing of reforms, and economic development activities to begin the transformation from a weak and fragmented government structure to an independent and sustainable organisation. PDP assessed governance, administration and financial planning, and reviewed potential economic and social development projects completed in the context of overall AP budget and financing sources and access to internal and external financing.

PDP undertook an evaluation of the Australia/IMF scholarship program which had the primary objective of increasing the institutional capacity of key economic institutions in developing countries to achieve sound economic management and lead to good governance of any country. The consultant assessed and reported on the institutional capacity building needs, especially human resource development needs, of the relevant economic institutions in the target countries and the role of the program in meeting those needs. Consideration was given to other programs of technical and advisory assistance to the relevant institutions, especially by the IMF and/or by core Australian public sector agencies, and the place of the scholarships program in the overall assistance provided. PDP also evaluated the degree to which scholars acquired the skills, expertise and knowledge relevant to the needs of the institutions and functions to which they are to return, together with the degree to which their new skills are utilised following their return.

PDP provided program evaluation services to the World Bank in assessing of the efficiency, effectiveness, relevance and compliance with the mandate of its Foreign Investment Advisory Service (FIAS) Asia Pacific Regional Office (APRO). The assignment entailed developing and utilising a tailored framework to review, assess and evaluate the structure, operations and activities of FIAS APRO in the provision of services and products to developing countries in Asia and the Pacific.

The team reviewed key FIAS advisory products including:

• diagnostic studies of the investment environments in client countries
• legal framework analyses
• administrative barriers studies
• investment incentive assessments
• evaluations of investment promotion institutions and programs.

The evaluation required extensive consultation with FIAS clients in Indonesia, Philippines, Fiji, Samoa and Vanuatu, mapping out of investment policy reform and strengthening initiatives in both these countries and others such as Viet Nam, Thailand, Bhutan, Bangladesh, PNG, the Solomon Islands, Kiribati, FSM, Palau and Tonga.

PDP was commissioned to bring forward for Pacific Forum Leaders' consideration, practical recommendations to improve the efficiency and effectiveness of air and shipping services. The focus was on identifying commercially-sustainable and economically viable options for the consolidation and regional approached to regulation, policy and administration.

An examination was conducted of how pooling of scarce regional resources might be applied in the aviation and shipping sectors to strengthen national capabilities. An assessment was made of: current and proposed aviation and shipping services including safety, pricing, demand and service efficiency; and the economic viability of current regional air and shipping service arrangements, taking into account the regional economic situation and current and proposed regulatory frameworks. Recommendations were made on regional air and sea services frameworks that would provide reliable services in a politically and economically sustainable form. Recommendations were also made on options to mobilise regional aviation and shipping resources on a commercial basis to ensure, as far as possible, a robust market-based solution underpinning the on-going viability and reliability of overall operations.

PDP provided the services of a Trade Economist and Evaluation Expert as part of the team undertaking a mid-term review of the ASEAN-Australia Development Cooperation Program (AADCP). The objectives of the review were to:

• assess the effectiveness of the AADCP in achieving the stated objectives for the program which had been agreed upon by ASEAN and Australian governments
• define the main issues affecting the program and proposing solutions as to how these can be resolved
• gather useful lessons and practices applicable to AusAID and ASEAN programs that may improve performance, and assist AusAID and ASEAN partners to meet their responsibilities for public accountability and reporting to governments.

Specifically, PDP’s Trade Economist and Evaluation Expert was responsible for:

• preparing economic and financial analyses of each project, reviewing assumptions and methodologies used and assessing the economic rationale in light of any changing conditions
• reviewing economic aspects of items of AADCP according to the work plan
• identifying problems and making practical recommendations which could be implemented during the continuation of the project
• assessing the contribution of AADCP to objectives relating to regional cooperation, economic cooperation and harmonisation within sectors of members’ economies, and facilitation of economic cooperation between ASEAN and Australia and within ASEAN
• assessing the contribution of AADCP to the private sector
• reviewing the current program monitoring and evaluation framework for assessing program impact and performance, and related practices and procedures.

PDP organised and led a study tour on Sustainable Fiscal Management, with the purpose of building the capacity of senior and influential officials of the participating governments to improve fiscal policies and budget systems in their countries. PDP conducted workshops on the priorities of the delegation, the Australian and New Zealand fiscal policy reforms and their level of success, and the roles of relevant government agencies. This was followed by site visits to various government agencies to discuss relevant aspects of intergovernmental fiscal issues. PDP staff also conducted a workshop to explore the relevance, to China’s economic and social circumstances, of the various principles which make up the prudent fiscal policy.

PDP was engaged to undertake an Education Finance and Expenditure Analysis with a focus on improving the effectiveness of teaching and learning in primary schools through higher education, including non-formal education activities, financed by the public budget. Key tasks included:

• examining revenue sources and the effects of changes in revenue amounts on the education system
• reviewing the budget process and effectiveness of expenditure allocation to the education sector
• examining the intergovernmental fiscal relationships and suggesting improvement
• examining the technical and external efficiencies
• building the capacity of MoE in education expenditure analysis techniques to plan, budget and use resources efficiently.

PDP was responsible for developing a medium term program to assist the Government in the preparation of the education budget for the Year 2003, with the aim of improving the efficiency and effectiveness of public spending in the sector.

PDP provided technical assistance to support the poverty monitoring, social services and safety nets components of the Government of Azerbaijan’s Structural Reform Program. The focus was on transformation of the Ministry of Labour and Social Protection (MOLSP) and reform of the system of social protection as part of the wider structural and public management reforms of the government.

Services included a comprehensive functional and expenditure review of the MOLSP detailing current administrative structures, the targeting efficiency and overall benefit of the programs and analysing the causes underlying targeting inefficiencies. The review also covered budgeting and budget execution processes and systems and resource allocation mechanism for social assistance programs. A Medium Term Reform Implementation Strategy was prepared to enhance social assistance targeting, and pilot programs designed and established under the reform implementation to encourage municipalities to take a leading role in promotion of local services and concessions for disadvantages in their region. A proposal to strengthen program-administering institutions was also prepared including an action plan for providing necessary training, investment in IT infrastructure and development of new processes and systems.

PDP assisted the Government of Azerbaijan to integrate the achievement of the Millennium Development Goals (MDG) into its development planning and implementation processes. Efforts were focused on strengthening the strategy implementation and impact monitoring mechanisms put in place under the State Programme on Poverty Reduction and Economic Development (SPPRED) 2003-2005, and enhancing the capacity of the SPPRED Secretariat to carry out participatory poverty impact monitoring of projects and policy measures identified in the strategy. Furthermore, PDP led the MDG costing and budgeting exercise to support the development of feasible MDG targets. Assistance was also provided for capacity building and information dissemination.

PDP provided assistance to the Prime Ministers Court in performing a benchmarking exercise evaluating priority processes of the following five ministries: Survey and Land Registration; Municipality and Urban Planning; Electricity and Water Services; Commerce and Industry; and Roads and Sewerage. This included responsibility for: 

• benchmarking for various priority services under each of the selected ministries 
• defining Key Performance Indicators (KPIs) and establishing service standards for various services provided within the selected ministries 
• comparison of the KPIs and service standards with established standards of similar government ministries and departments in Australia and the United Arab Emirates 
• commentary and comparison of the said processes indicating the environment in which the process/service operates.

PDP staff participated in a joint World Bank/DFID mission to review the Reforms in Budgeting and Expenditure Control (RIBEC) Project. In particular, the team examined the policy, planning and budget system in Bangladesh and recommended strategic interventions that could assist the authorities in making the budget a more effective instrument of economic management.

PDP provided the services of a Macroeconomist for the preparation stage of the long term Land Administration Reform Project aimed at extending and developing implementation. The consultant prepared a fully costed, prioritised, and economically and financially justified investment project suitable for external financing, and reported on the financial viability of the long term project.

The project objective was to formulate a water management plan for the northeast region of Bangladesh within the framework of the Flood Action Plan, resulting in the identification of some 45 initiatives in the water, fisheries, forestry, environment and social sectors. PDP provided the services of a Fisheries and Project Impact Monitoring Specialist to assist in the design and execution of a flood control project and fish-pass pilot project at the Manu River, and to advise on the assessment of the impact of pilot dredging of the Kalni-Kushiyara River on fisheries and the development opportunities in the Upper Kangsha basin.

PDP provided the services of an Urban Governance Specialist to identify best practices and prepare policy recommendations for participation of the urban poor in municipal governance. In particular, the consultant was charged with identifying best practice participatory pro-poor planning and monitoring in urban infrastructure service delivery and developing appropriate planning and monitoring systems for selected municipalities.

The consultant prepared a report identifying a framework for the participation of urban poor in municipal governance and an action plan for institutionalising the framework in municipalities. Furthermore, the consultant prepared background papers for a national workshop identifying issues related to participatory pro-poor planning, budgeting and monitoring of municipal services.

PDP developed training manuals and conducted four training sessions as part of the training program on Non-Banking Financial Institutions (NBFIs) credit risk management This assignment was an integral component of the SEDF project to improve the capacity of local NBFIs in Bangladesh to develop capacity and procedures to manage credit risk.

PDP continued to provide support to the SEDF project to improve the capacity of local Non-Banking Financial Institutions (NBFIs) in Bangladesh to develop capacity and procedures to manage credit risk. Further training sessions were held, including Training of Trainer (TOT) sessions on credit risk management and training sessions on credit risk management for a NBFI Partner Financial Institution of SEDF. PDP staff also developed a TOT manual on credit risk management and a training manual on financial statement analysis for the Partner Financial Institution.

PDP conducted two training programs on Internal Control and Compliance for all local commercial banks in Bangladesh. The objective of the training programs was to improve the capacity of local banks in Bangladesh to develop capacity and procedures to manage credit risks in banking. The content of the training programs was based on the guidelines and manuals developed by Bangladesh Bank on Internal Control and Compliance.

PDP provided technical assistance in the development of Training of Trainers Manuals. The purpose of the manuals was to familiarise the trainers, as well as the bank officials, with the new Bangladesh Bank directional guidelines on internal control and compliance, credit risk management and anti-money laundering. The manuals aimed to improve the commercial banks’ internal control and compliance, credit risk management and anti-money laundering culture, establish minimum standards for segregation of duties and responsibilities in these respects, focus on recording, reporting and compliance and assist in the on-going development of risk management in the banking sector. The manuals guide the banks in setting up appropriate organisational structures, policies and procedures, and assist in developing a clear understanding and appreciation of how industry best practices impact on individual banks through the implementation of the Bangladesh Bank Guidelines.

PDP conducted two training of trainers workshops with the objective of improving the capacity of local banks in Bangladesh to develop capacity and procedures to manage credit risk in banking. The workshops provided directional guidelines to the banking sector in Bangladesh to improve the credit risk management culture, establish minimum standards for segregation of duties and responsibilities, focus on recording, reporting and compliance, assist in the on-going development of risk management processes in the banking sector and develop in-house training capacity within the commercial banks.

The training programs were based on the guidelines and manuals developed by Bangladesh Bank on managing credit risks and the Training of Trainers’ Manual developed by PDP on behalf of SEDF. Topics covered by the training programs included:

• policy guidelines including lending guidelines, credit assessment and risk grading, approval authority, segregation of duties and internal audit
• preferred organisational structure and responsibilities
• procedural guidelines including approval process, credit administration, credit monitoring and credit recovery.

A PDP team completed a study of intra-ASEAN shipping services covering a review of the current state of intra-ASEAN shipping services, including mapping out of the intra-ASEAN shipping network, comparing the performance of intra-ASEAN shipping services versus other regional groupings, reviewing relevant national policies and practices affecting intra-ASEAN shipping, and determining restrictive maritime trade-related policies and private anti-competitive practices. An assessment was also made of intra-ASEAN shipping costs. A regional action plan was formulated to promote efficient and competitive intra-ASEAN shipping and a regional cooperation framework in shipping services designed, taking into consideration other working models (e.g. the common shipping policy in the EU) as well as agreements developed in AFAS, WTO and APEC and other groupings.

PDP, in association with JAS-ANZ, provided services to strengthen the legal, institutional physical and technical capabilities and capacities of the ASEAN member countries, particularly the new members, to identify, design, adopt and manage a harmonised standards and conformity assessment system. The objective was to strengthen ASEAN economies by facilitating the free flow of intra-ASEAN trade through the elimination of Technical Barriers to Trade (TBTs) by adopting a harmonised system of standards and conformity assessment.

Specific tasks included the formulation of a regional best practice benchmark and national development models for standards and conformity assessment for Cambodia, Laos, Myanmar and Viet Nam. PDP developed a harmonised system of standards in the region by the adoption of international standards, rather than developing unique standards, with a focus placed on strengthening the ability of standards bodies in the region to participate effectively in international standards development. Our team enhanced the technical infrastructure in testing, certification and accreditation, and undertook capacity building activities such as training on conformity assessment and testing. They also ensured that standards were referenced in the regulatory regime of the region, that the regulations do not restrict international trade and that regulatory measures or standards were compatible with international standards.

PDP undertook an extension phase of the Project, with the objective of providing individually tailored follow up assistance to Cambodia, Laos, Myanmar and Vietnam (CLMV) countries to: support the implementation of CLMV national development models (NDMs); and enhance the capacity of regulators’ to use standards and conformity assessment procedures with their Good Regulatory Practice (GRP) regime in select priority sectors.

PDP provided the services of an Organisational Structure and Management Systems Design Specialist to impart expert advice on the organisational structure and management system design of the new National Revenue Agency (NRA). The creation of the NRA, which integrated the functions of the General Tax Directorate (GTD) and the collection function of the National Social Security Institute (NSSI), is central to the Bulgarian Government’s revenue administration modernisation program.

The consultant was responsible for transformation of the institution/entity, creating the management structure, building executive and managerial capacity, developing related management information systems including customisation, and strengthening the integrity of the NRA. Organisational development was focused on:

• development of an adequate organisational design to implement the NRA
• design of a management system for the NRA covering all levels of the agency, including accountability, monitoring, internal controls and corruption management.

A management information system (MIS) was deployed throughout the NRA. This component also provided management and technical training to staff to raise the level of agency professionalism and integrity.

PDP provided the services of a Policy Economist to prepare a chapter on Cambodia’s economy and social development for the Asian Development Outlook Publication. A key focus of the country study was reform of public expenditure management including social sector financing, service delivery and expenditure allocation.

PDP assisted in the Integrated Fiduciary Assessment and External Advisory Panel (EAP) review of the Public Financial Management Reform Program in Cambodia. PDP undertook a Public Expenditure and Financial Accountability (PEFA) based fiduciary assessment of the PFM task environment and assessed the effectiveness of technical assistance being provided to the PFMRP in relation to: (i) the achievement of the Program’s performance targets; (ii) the technical advisers’ contributions to capacity building; and (iii) within the context of the institutional strengthening objectives. Based on the PEFA assessment and EAP review, PDP made recommendations necessary for enhancing program implementation.

PDP undertook the final evaluation of the Fiscal Decentralisation Support Project in terms of its design, implementation and overall achievements. The purpose was to evaluate the efficiency, effectiveness and relevance of the program, the sustainability of program results, and the level of satisfaction of program stakeholders and beneficiaries with the results. Key recommendations were provided to UNDP on the need for follow-up on the current interventions, and future support to fiscal decentralisation.

PDP provided project preparation support for the proposed Land Management and Administration Project. The goal of the project was to promote poverty reduction and sustainable economic and social development, with the primary objectives of providing secure land tenure for all eligible land owners, reducing land disputes and laying a foundation for efficient, sustainable and equitable use of state land.

PDP undertook a financial analysis documenting the fiscal impact of the project, the long term financial sustainability of project initiatives and an assessment of the financial benefits and incentives for participation by beneficiaries.

PDP prepared the SEDP II based on previous work completed. The team reviewed the current draft of the SEDP II and incorporated comments received, strengthening individual sector strategies as appropriate and incorporating cross-cutting concerns. The document was re-edited to make it more clearly establish the strategic thrust of the government, and to allow regular review and update of sector strategies, if and when necessary. The final draft was prepared for presentation to the Council of Ministers.

As part of its focus on establishment control, PDP assisted the Ministry of Economy and Finance (MEF) to prepare a pilot establishment register. The register consists of a list of approved posts for which budget provision has been made and serves to control appointment, transfer and departure of employees between posts and into/out of the civil service.

Key tasks of the consultant included: 

• conducting a review of the current system of establishment control and appropriate best practices to control the establishment in the Cambodian context
• rationalising personnel management by improving the human resource database by developing the establishment register 
• assessing the capacity needs of the MEF Personnel Department (PD) in relation to establishment control and articulating a program of training
• providing advice and assistance on matters relating to workforce management/establishment control.

PDP provided a team of specialists to form an External Advisory Panel (EAP) to review progress in implementation of the Royal Government of Cambodia’s Public Financial Management Reform Program (PFMRP). The EAP served as an advisory body to the Ministry of Economy and Finance (MEF) and Development Partners (DPs), providing independent and comprehensive technical assessments of PFMRP progress. Specifically, the EAP provided assessment on:

• the effectiveness of technical assistance provided to the PFMRP in relation to both the achievement of the Program’s performance targets and technical advisers’ contributions to capacity building
• the effectiveness of the PFMRP within the context of the institutional strengthening objectives
• the quality of MEF’s internal annual planning and programming, monitoring and reporting systems for the PFMRP
• developments in relation to risks identified by the initial PFMRP risk management matrix and any associated needs for updating of the matrix
• the performance of donors in fulfilling their roles and tasks within the context of the agreed Partnership Principles and in particular the effectiveness of the donor coordination mechanism and MDTF management and participation.

PDP provided technical assistance to strengthen the Ministry of Finance (MOF) and Ministry of Planning (MOP) for the purpose of initiating a new market oriented planning framework and public expenditure programming process.

The project focused on reform of economic planning and management processes, and assisted in institutionalising reforms in strategic planning including the use of a medium term strategy, macro and sector policy, public expenditure programming, capacity building in formulating consistency framework and public expenditure programs. A comprehensive PIP process was developed including performance indicators under a national PIP M&E system, with effective PEM/PIP processes linking the Ministries of Planning and Finance. Assistance also aimed to sustain and improve the government’s capacity to allocate expenditure and address absorptive capacity constraints through the operations of the PIP Unit.

PDP assisted the Government of Cambodia to maintain and expand its strategic planning capacity, strengthen the linkages between the public investment program (PIP) and the budget cycle and to develop the human resources required to implement proposed activities. Assistance incorporated the design of PEM management systems, including public expenditure review and monitoring and evaluation, and PIP integration and use in national budget preparation. A review of PIP/budget planning processes was conducted and recommendations made on new mechanisms linked to macroeconomic policy and the expenditure framework and the integration of capital and recurrent budget allocations with the PIP processes developed under Phase I of this TA. Extensive skills transfer was carried out through formal and non-formal training in public expenditure management.

PDP was engaged to undertake an institutional assessment and diagnostic review in order to develop a roadmap to implement the Public Financial Management Reform Program in the three line ministries Ministry of Agriculture, Forestry and Fisheries (MAFF), Ministry of Rural Development (MRD), and Ministry of Water Resources and Meteorology (MOWRAM) dealing with rural development. This included a comparative study of the progress of internal audit functions within the Ministry of Economy and Finance (MEF), the three line ministries, and selected provincial departments and districts, detailing activities to strengthen public financial management (PFM) and organizational development of internal audit functions. A detailed capacity building and training plan was prepared to implement PFM measures.

PDP’s team also assisted in formulating a roadmap for institutional strengthening of the National Audit Authority (NAA) and improving the capacity in undertaking performance audit of social sector spending and rural development projects. This included initiation of preparatory work to determine the terms of reference and costs for building a network of internal audit institutions and NAA for an improved interface between external audit and heads of internal audit departments.

PDP undertook a review of opportunities for the countries of the Greater Mekong Subregion (Cambodia, China, Laos, Myanmar, Thailand and Viet Nam) to cooperate in foreign direct investment. The review covered:

• general investment facilitation, including exchange of personnel, sharing of data and dissemination of investment information to the international investment community
• investment promotion, including developing sub-regional strategy and common investment promotion materials and organising joint promotion missions
• defining the regulatory framework for investment, including harmonisation of application procedures and the identification of legal, bureaucratic and regulatory barriers to complementary and trans-border investment.

A paper was prepared for the Investment Working Group on mutually beneficial and cost effective cooperation opportunities, together with a list of priorities to shape further activities of the Group.

PDP provided expertise for a presentation on policy development principles and processes in the social welfare area in Australia and the application of the principles to social welfare policy development in China.

PDP provided consulting services to assess the needs and capability gaps of both central and sub-national agencies involved in fiscal reform. It involved extensive consultations with the Ministry of Finance (MoF) and the State Authority of Taxation (SAT) on key areas of fiscal reform, focusing on public expenditure management (PEM), the development of a Single Treasury Account System (STA), and tax policy and administration. Assistance was provided in developing strategies identifying the financial, human, institutional resources needed to successfully carry out fiscal reforms and indicated future areas for action, drawing upon international experience as well as the experience with implementation of pilot reforms in some agencies and provinces in China. Recommendations were made on future cooperation and technical assistance with a view to developing partnerships with donor agencies assisting the fiscal reform process.

PDP contributed to the macroeconomic policy and regulatory reform component of a major BOT study in Hunan Province. The macroeconomic study and regional energy sector analysis involved an examination of provincial budget, financing capacity and impact of divestment on the entity, a study of regulatory reforms and changes to institutional arrangement, and assessment of implications for budget and revenue policy.

PDP formulated the overall Regional Development Strategy (RDS) for the Tumen River area, with specific responsibility for environmental, trade, industry, investment and natural resource sectors. The RDS incorporated an Environment Management Plan which provided a number of measures to ensure that the resources of the area (including mineral, agricultural and marine resources as well as its human resources) were able to provide benefits over the longer term.

PDP was engaged to evaluate the progress of the first phase of the TRADP, a multi-national regional program designed to accelerate trade, investment and socio-economic development in a region located in the heart of North East Asia. PDP was subsequently commissioned to implement it’s recommendations including re-focussing of the program through a strategic planning process and preparation of an overall Regional Development Strategy together with sectoral strategies for transport, industry, telecommunications and tourism. PDP was also engaged to carry out phase two, establishing the TRADP Secretariat in Beijing and continuing support for sectoral and regional planning.

PDP provided the services of a Trade Facilitation Expert to assist the Greater Mekong Subregion (GMS) countries in formulating an action plan on trade and investment facilitation that would strengthen the competitiveness of the Mekong Subregion, complement trade liberalisation initiatives and promote the GMS as an integrated production base. The long term goal of the technical assistance was to strengthen economic and trade cooperation and promote integration within the GMS and with countries outside the region through facilitating the free movement of goods and people.

In preparing the action plan, the consultant provided technically sound advice through undertaking analytical research and literature reviews (on customs rules/regulations, inspection and quarantine measures, mobility of business, trade logistics, investment promotion and capacity building), country consultations and convening of the special trade facilitation group meeting.

PDP provided assistance to the Government of Eritrea in formulating a fisheries infrastructure development program. This involved a review of the current sea fishing operations in Eritrea and their profitability, and assessment of the requirements of port facilities for present and future expansion of the fleets. PDP’s assistance extended to the development of essential fish landing, handling and processing infrastructure, involving the preparation of preliminary drawings and cost estimates, drawing-up of operational plans and evaluation of the need for cold storage, ice production and handling facilities.

PDP undertook the first comprehensive study of marketing and distribution of commodities and manufacturer/ industrial goods in Ethiopia, focusing on pricing of manufactured products and tracing observed retail prices in both official and unofficial markets back to cost of production and cost of importing. The consultants analysed resource flows, pricing and margins for key commodities and constructed a database covering flows and pricing structures of agricultural commodities, semi-processed goods and manufactured goods. A comprehensive program of price and marketing reforms was prepared including policy formulation concerning price controls and the establishment of a mechanism of efficient resource allocation, and liberalisation of trading procedures for commercial trading entities.

PDP undertook a comprehensive analysis of industrial structure, covering the entire economy, and prepared effects of assistance measures based on estimates of effective rates of protection (EPR) and domestic resource costs (DRCs). A macro model was prepared detailing the results for all major industry groupings, involving policy formulation and modelling in each industry group and external sector, and analysis of financing requirements in priority policy areas. A restructuring proposal was also presented for public enterprises.

PDP prepared the Social Sectors chapter of the PIER, including a review of documents relevant to the social sectors (education, health, gender and youth issues) and a review of trends in Fiji’s social sector indicators. The consultant reviewed, analysed and reported on the growing incidence of poverty and trends in access to health care, education and other social services, and analysed the affordability of the government’s education, health and welfare expenditure programs (which included identifying supply and demand constraints to education, health and welfare service provision). The report provided constructive comment on current government policies including the public subsidy and pricing policy in the social sector. It also assessed the relevance of Fiji’s public investment program for the provision of social services and the institutional framework and size of the education, health and welfare sectors in light of future growth and development requirements.

PDP assisted the Ministry of Finance and Planning to select and implement new financial software packages appropriate for public sector application. Assistance was provided to review the status of the SAP software implementation and to assess the functionalities and capacity of SAP and other financial software to meet the likely new Financial Management Reform (FMR) requirements and the potential to support accounting and reporting requirements during the transitional period. Recommendations were made on the selection and implementation of suitable software, given the revised PFMA requirements, and a users' training program was developed to ensure that users understood the functionalities of the system and how to use the system for day-to-day operations.

PDP provided assistance to the Operations Evaluation Department of the ADB in carrying out a Special Evaluation Study on the effectiveness of the ADB’s Resident Missions (RMs). The study assessed the effectiveness of RM operations in delivering services to both Developing Member Countries and internal ADB clients with respect to relevance, effectiveness and efficiency criteria. Lessons were drawn for enhancing ADB’s operations and development effectiveness through RMs and recommendations provided on practical steps to be taken by ADB and DMCs towards improving effectiveness of RMs.

PDP undertook a stocktaking of selected services sectors in 14 Pacific ACP States (PACPS) and prepared a report outlining, with respect to each PACP, the limitations or trade restrictions applying to those sectors/sub-sectors and modes of supply by national laws, regulations, policies and administrative procedures. In light of the potential services liberalization stemming from PACP trade obligations under the Economic Partnership Agreement (EPA) with the EU, PDP advised on the need to develop new and/or revise existing regulations, ensuring that these reflected government policy goals and development plans. The report is to be used in national Services consultations to assist the PACPS in developing their requests and offers in services trade for negotiations with the EU.

PDP provided the services of a Public Finance Specialist to undertake a financial management assessment of the Regional Pacific Islands Sustainable Energy Project’s executive agencies (in Papua New Guinea, Solomon Islands and Fiji) and fund manager (in Australia). The consultant provided recommendations on common financial report formats, so as to facilitate the aggregation of data by the World Bank, and disbursement arrangements for each agency, taking into account Government procedures and the needs of the project.

PDP provided the services of a Policy/Industry Economist as part of a major World Bank study of the Ghanaian economy. Comprehensive sector modelling was carried out, with a macro model of the economy used as the base for analysis of industry structures, constraints and restructuring requirements. Industry assistance measures including EPRs and tariff studies were analysed, together with industry performance under alternative policy regimes. A sector model was constructed incorporating trading systems prices, resource stocks and flows effects of internal and external policy changes and a policy framework developed.

PDP provided long-term technical assistance aimed at improving the performance of the fiscal system by addressing its shortcomings and building technical capacity. The project focused on five main areas:

• broadening of the tax base and strengthening tax administration
• reducing the burden on budget outlays on interest payments, civil service salaries and pensions obligations, as well as subsidies to public enterprises
• overhauling the manually operated budgetary system by revising procedures for its formulation, execution and review, to be replaced with a computerised system
• revising the method of budgetary allocations by means of economic analysis that is reoriented toward addressing issues relating to poverty reduction or promoting growth
• institutional strengthening in the areas of public enterprise reform, strengthening of public-private partnerships, improving public administration and enhancing decentralised service delivery.

PDP staff led a team to provide quantitative policy and strategy modelling to the IFC in the Indian oil and gas and users sector, in support of investment strategy, enterprise reform and industry assistance formulation. Primary concerns were the preparation of trade policy and models, the review of existing investments and the definition of restructuring requirements for industry development in oil/gas and steel sectors. A key focus was the privatisation strategy and action plan.

PDP conducted an evaluation of the project using a public expenditure management/resource allocation framework, including an assessment of the overall effectiveness and efficiency of the project in achieving capacity building objectives and outcomes. The review included an assessment of the project’s effectiveness in meeting the needs of GOI line agencies, an examination of the efficiency of the delivery mechanism and administrative arrangements, and an examination of lessons learnt. Recommendations were made on required changes to the project design and the need and scope for continuation of Australian assistance.

PDP provided extensive technical assistance in support of the public management reforms of the Kerala State Government. Assistance was focused on the design of effective institutional and structural reforms and process measures to improve the state’s public finances and to build the necessary capacity within the state government to carry them out.

Initially, PDP carried out a major functional and systems review of finance and revenue agencies, and designed a reform implementation strategy comprising of structural and process and systems reform measures for core state government agencies and the state and local statutory authorities. Subsequent work was carried out with respect to the projects four main components: (i) developing the fiscal framework; (ii) introduction of the VAT; (iii) improving public expenditure management (PEM); and (iv) supporting devolution to local self-government.

Specific tasks carried out included:

• Developing a simple, transparent and accountable expenditure monitoring and control system based on information technology for local bodies.
  
• Preparation of a detailed implementation plan based on a national consensus model adapted for the requirements of Kerala
  
• Preparation of a training module on VAT for the Centre for Taxation Studies (CTS), drawing on international experience and focusing on the proposed National Model, with the intention of building the capacity of the CTS as a training institution on VAT for Kerala
• Developing a public expenditure management (PEM) system built on appropriate ideas drawn from internationally accepted practices like zero based budgeting (ZZB) and performance budgeting that could be integrated into a multi-year budgeting framework
• Provision of recommendations on methods for making the non-tax revenue cell in the Finance Department an effective instrument for nurturing a culture of levying user charges on social services through incentives and institutional reforms
• Developing the legal and administrative framework for implementing fiscal responsibility to ensure sustainability of public finances, including a medium term fiscal framework
• Developing an action plan for the Kerala Water Authority (KWA) for improving efficiency, taking into account the sharing of management responsibilities of the water sector between the Authority and the local self governments
• Developing a training module in the Institute of Management in Government and Kerala Institute of Local Administration for public servants in utilities pricing
• Developing a management plan for health care facilities transferred to local bodies and action plan for efficient transfer of water supply schemes to local bodies
• Provision of advice on rationalisation measures for motor vehicle taxes, and stamp and registration duties, and
• Provision of recommendations to improve allocative efficiency in Kerala’s expenditure priorities in key social sectors.

PDP supported the public management reforms of the Kerala State Government with a focus on design of effective institutional and structural reforms and process measures to improve the state’s public finances and building the necessary capacity within the state government to carry them out. A functional and systems review of finance and revenue agencies was undertaken and a reform implementation strategy designed. The strategy aimed to help the state government to formulate tax and non-tax reform measures to enhance revenue raising capacity, upgrade the institutional capacity of the Finance Department to manage and control public spending, introduce greater accountability and transparency in budget design and strengthen the capabilities of local bodies to assume greater responsibility for social spending and make their functioning transparent and accountable. A further series of functional and expenditure reviews were completed for state agencies and local authorities so that reform of pricing and service delivery in key areas such energy and water could be designed.

PDP designed a reform implementation plan with a focus on revenue and budgeting and budget management agencies, identified the institutional requirements for promoting fiscal responsibility, and introduced multi-year budgeting. Measures were proposed to strengthen the capacity of the non-tax revenue cells in the Finance Department to levy adequate user charges on social services. A major component of the project was the introduction of a Value Added Tax (VAT) in Kerala and a review of the tax structure and revenue buoyancy of stamp duty and registration fees, motor vehicle taxes, state excise duty and other minor taxes.

PDP was engaged to prepare a policy research paper on trade in accountancy services, to support the development of the Government of Indonesia’s trade in services strategy as part of its overall trade strategy. The sectoral paper was to be used as a model for analysing trade in other services and results were disseminated to relevant stakeholders through a seminar/workshop. The PDP team also provided policy advice to the ministries in areas such as the WTO negotiations on trade in services, and the Indonesia-Japan Economic Partnership Agreement.

PDP undertook a systematic analysis of the financial issues related to the civil service establishment in regions (provinces/kabupatens) and the implications inherited by decentralisation, and constraining or creating opportunities for modernising their management systems. The analysis focused on emphasising the opportunities and constraints and discussing these within the framework of options in the short, medium and longer term. Particular attention was given to existing financial data on personnel in regions, relating these to budgets, and to establishing the levels of financial constraint that staff expenditures represent in the budget realisation.

PDP was engaged to develop government capacity to guide public expenditure management reforms and to focus assistance on the design of fiscal decentralisation measures. The overall aim was to advise the Ministry of Finance on the structure of the budget and the design and financing of intergovernmental transfers within the framework of UU22/1999 and UU25/1999.

PDP undertook a diagnostic study of NTT Province and kabupaten PEM system, and prepared reports on PEM performance and the implications for decentralisation, including the role of the DAU and DAK in the finance follows functions model. The report analysed the implications of proposed implementation procedures and regulations for the recently passed laws on decentralisation for the management of public expenditures, especially on how they might impinge on public expenditure outcomes under decentralisation arrangements.

PDP provided assistance to build the technical capacity of the Partnership for Governance Reform (PGR) to support best practice public sector reform covering advocacy at central and regional/provincial government level and the design and implementation of assistance at the regional/provincial level. The PGR focus was on three complementary areas aimed at assisting national and sub-national governments in designing and implementing reforms in public financial management aligned with the civil and administrative reforms required to improve public sector performance:

• continued implementation of pilot reforms in the Yogyakarta regional governments supported by the PGR
• closer interaction with MENPAN in central government agency structural reforms that reflect acceptance of the comparative benefits provided by the PGR and the key role played by the Intergovernmental Working Group
• commitment to the results and recommendations of the review of PGR’s services in civil service reform.

PDP supported the expansion and quality of advocacy, design and assistance programs through the preparation of technical reference and applied research material. Toolkits and supporting technical material were provided to the Partnership team to engage regional/provincial level governments in advocacy programs that are geared to getting these governments signed up to the public sector management reform program.

PDP provided both strategic HR advice to the MST and senior TAMF consultants on HR reform and assisted with HR activity implementation. An important part of the assistance was the provision of on-going advice and feedback to the MST regarding progress of existing HRM related activities and opportunities for future support. The scope of work fell broadly under the following four areas: 

• realising synergies in the provision of HR support across the TAMF sub-facilities, including the transfer of best practice and learning from one agency to another, as well as ensuring good coordination and cooperation was achieved with other relevant projects 
• providing a supervisory/quality assurance role for all HRM initiatives, including the provision of HR advice to and mentoring of agency staff and TAMF consultants, and supervising HR initiatives across the sub-facilities 
• design of new HR initiatives and assisting in activity implementation 
• assisting with the preparation of transition plans as TAMF moves into a transition phase, including analysing the need for and providing support in strengthening HR capacity in partner agency staff.

PDP continued to assist the World Bank Indonesia Office to extend and deepen regional civil service and public finance reform. The PDP team undertook a participatory diagnostic of the present organisation and civil service management in Cluster One region (Lombok), working in conjunction three selected administrations: provincial, district and city administrations. A review of the performance of civil service management, decentralisation and related reforms in Indonesia was undertaken in order to prepare a diagnostics report including an assessment of the functions, organisation, staffing and financial situation. The team supported the preparation of a roadmap for reforming the organisation and the civil service in the selected regional cluster.

PDP continued to assist the World Bank Indonesia Office to extend and deepen regional civil service and public finance reform. The PDP team undertook a participatory diagnostic of the current organisation and civil service management in Cluster Two region (West Sumatra), working in conjunction with the selected administrations: provincial, district and city administrations. A review of the performance of civil service management, decentralisation and related reforms in Indonesia was undertaken in order to prepare a diagnostics report including an assessment of the functions, organisation, staffing and financial situation. The team supported the preparation of a roadmap for reforming the organisation and the civil service in the selected regional cluster.

PDP provided assistance to the Partnership for Governance Reform (PGR) to strengthen the Province of the Special Region of Yogyakarta and selected kabupaten in reform strategy development, and diagnostic of civil and administration reform and public expenditure management to effect the transformation to a more results focussed public sector. The purpose was to provide a comprehensive whole-of-government reform model for regional governments with a pilot in the Special Province of Yogyakarta.

The current functions and linkages of the Government of the Province of Special Region of Yogyakarta were diagnosed to identify gaps and to propose steps to enable them to become an effective and efficient civil service organisation. Additional assistance was provided to two kabupaten in developing reform strategies and their implementation models in defining intergovernmental arrangements and financing arrangements. The assistance model was to be replicated elsewhere within Indonesia in assisting sub-national governments in designing and implementing reforms.

PDP assisted the Partnership for Governance Reform (PGR) with the regional government whole-of-government reform process, focusing on solving issues identified in Phase I, previously undertaken by PDP. The purpose was to convey the agendas of the pilot areas to the central level and initiate a dialogue on the roles and responsibilities of the different institutional levels. Specifically, the consultancy identified and outlined how particular institutions link together, and how particular institutional and legal barriers for reform are addressed and outlined action plans in key areas of reform.

Detailed transformation programs were prepared, focusing on:

• transforming governance, corruption prevention and anti-corruption institutions at provincial and district government level
• rationalisation and streamlining of central and local government organisations
• restructuring job formation
• improving the procurement system, remuneration system and performance appraisal system
• assessing priorities for reform of budgeting processes and mechanisms to strengthen financial management.

A key component was to assist regional governments with corruption prevention by internalising anti-corruption measures within budget driven public sector reforms. Support for new entities within regional administrations in the form of design of the entities and the preparation of processes and systems designed to address anti-corruption was provided.

PDP specialists worked on the first major civil service review in Indonesia with the aim of identifying the requirements for transformation of governance in the country, including a major focus on incentives to reduce corruption. The objectives were to identify the institutional framework, processes and systems in place and make concrete proposals for improving the performance and accountability of public officials through institutional reform.

PDP prepared a quantitative rewards assessment model (RAM) in order to analyse the structure of civil service benefits and assessed formal non-monetised benefits and informal payments received as part of the Patronage and Group Management System of corrupt behaviour. Recommendations for anti-corruption models and related institutional processes were made and models showing alternatives with varying degrees of monetisation and their implications for the budget were costed and presented. The budget structure was analysed with assessment of formal and informal salary top-ups from the development budget.

This consultancy was part of the TAMF Trade Policy Project, which assisted the Government of Indonesia with policy advice on international trade in services and in formulating better international trade in services negotiating positions and strategies. PDP provided the services of a small international trade in services team conduct a wide range of consultations with key stakeholders, with the objective of determining negotiating positions and strategies for Indonesia on international trade in labour services. These consultations were used as the basis for preparing a policy research and analysis report on Indonesia’s international trade in labour services. A key theme of the policy research and analysis report was on how Indonesia can expand its exports of labour services. The paper included an international trade strategy for Indonesia’s trade in services, as well as details of what Indonesia could be requesting from trading partners and what Indonesia could be offering to trading partners. PDP’s team disseminated the results from the policy research and analysis report by way of a workshop with key stakeholders. The team also focused on building the capacity of some Ministry of Trade staff to undertake policy research and analysis on international trade in services.

PDP provided technical assistance to strengthen Indonesia’s anti-money laundering (AML) regime and combat money laundering effectively in order to strengthen the financial system and its governance. In particular, the PDP team:

• supported proper implementation of AML laws and regulations
• strengthened non-bank supervision and audit procedures
• built capacity to prosecute and adjudicate money-laundering cases
• increased understanding of AML compliance among non-bank financial institutions (NBFIs)
• supported sustainable in-country AML computer-based training (CBT).

PDP assisted in the implementation of a Governance Reform Support Project, focusing on central and regional decentralisation. The project developed the capacity to progress major program initiatives from the early conceptual stages through program design and pilot implementation through to full program implementation.

PDP prepared a strategic paper - the Naskah Akademis - which entrenched the new budget concepts and anticipated the effects of the new arrangements in the public sector. Enabling regulations were drafted from the consensus/decisions reached via the Naskah Akademis, integrating the views of the various stakeholders. After approval of the implementing regulations, these were translated into detailed processes spelled out in a ministerial decree, providing a workable budget preparation model for provincial and local governments for use in the preparation of the 2005 Budget.

PDP helped the drafting of regulations mandated by Law 1/2004 on budget implementation and advised the Ministry of Finance on the content of the implementing regulations. The preparation of an effective regulation on this subject was critical to implementing the new budget rules supported by the three Basic Financial Management Laws (State Finance, State Treasury, and State Audit), which provide the legal foundations of a vast, ongoing reform of public finance management in Indonesia.

The assignment supported the preparation of the regulation by a specialist drafting team. The document identified linkages to other legal products (such as the regulations on the preparation of the budget – PP20/21 2004, Government Service Agencies, cash management and budget reporting) that either need to be taken into account, be overridden by the new regulations, or helped to enable the implementation of others. This mapping out exercise was critical to ensure that the most important linkages were accounted for.

Key outputs of this activity were a comprehensive, annotated list of the elements to be included into both regulations and the identification of key issues that needed to be resolved. The document enabled the head of the drafting team to manage the drafting process and establish effective legal products.

PDP provided consulting services as part of the AusAID Design Team for the Indonesia Infrastructure Facility (IIF). The team was responsible for: 

• undertaking a review of all relevant background documentation 
• meeting with donors and stakeholders to discuss strategic directions appropriate for the IIF and extracting lessons learned to be reflected in the design and focus of the new facility 
• preparing an Aide Mémoire that summarised the activities of the mission and that provided options and recommendations on the likely direction of the proposed facility and the design next steps 
• participating in a peer review of the Aide Mémoire and options paper and confirming with AusAID which options were to be included in the Project Design Document (PDD) 
• preparing a Facility Design Document for Phase I of IIF, incorporating peer comments into the document.

PDP provided assistance to the GoI in progressing the workplan for establishment of the Indonesian Infrastructure Financing Facility (IIFF). The IIFF concept was a multi-donor initiative to promote and expand infrastructure development. IIFF was designed to address the continued obstacles to mobilising long-term resources for infrastructure investment in Indonesia through the provision of loans and other financial products for infrastructure investments.

Specifically, PDP provided assistance in:

• supporting the Working Group with implementation of the workplan on the establishment of IIFF and with monitoring of progress against the workplan 
• maintaining liaison among investors and donors on related issues, as well as with the MoF committee coordinating the GoI contributions to the establishment of IIFF 
• supporting the management and legal consultants working on the establishment of IIFF 
• continuing to socialise IIFF and investigating a potential project pipeline for IIFF.

PDP provided assistance to the Government of Indonesia in preparing and implementing a workplan for establishing an Indonesian Infrastructure Fund (IIF), as an initiative to promote and expand infrastructure development. IIF was being designed to address the continued obstacles to mobilizing long-term resources for infrastructure investment in Indonesia through providing financial products for infrastructure investments. PDP’s consultant was responsible for: 

• assisting GoI and the Bank with project management activities 
• liaising and maintaining coordination among GoI, the Bank and the Bank’s consultants on all aspects related to implementation of the workplan and establishment of IIF 
• supporting consultants engaged to provide technical assistance on legal, management and governance issues associated with the structure of IIF 
• monitoring the progress of the IIF establishment.

PDP prepared a policy paper covering financial and structural aspects of land administration in terms of fee for, and hence subsidy of, the systematic registration program. This involved:

• analysis of the National Land Agency (BPN) policy and practice concerning fees
• review of recent fiscal laws and analysis of their impact on the systematic registration program
• determining the parameters for systematic registration fees, including affordability in the community and applying these parameters to arrive at a range of fee options
• developing models to evaluate the impact of the fee options on BPN revenue, level of GOI subsidy for ILAP and the effectiveness of the systematic registration program.

The policy paper was central to pricing and cost recovery of services for land administration and the related issues of institutional roles and performance.

PDP assisted the Government of Mongolia to implement a performance-based budgetary and public administration system strategy. The project pilot-tested output-based budgeting, medium term planning, accrual accounting, financial reporting practices and performance-oriented administrative reforms of five pilot central government agencies in two pilot provinces. The PDP team supported the Ministry of Finance and Economic Planning, the pilot agencies and pilot provinces in:

• preparing accrual accounting for selected entities in the two pilot aimags
• preparing a study on the relationships of governance reforms and decentralisation
• preparing functional reviews of the decentralised structure of the six pilot agencies (with bottom up feedback from the two provinces)
• implementing the management change proposed in the functional reviews.

PDP also made recommendations for broadening the decentralisation reforms to other ministries.

PDP has been contracted to undertake ADB’s most recent project in Indonesia, Local Government Finance and Governance Reform. PDP’s eight-person team will provide support to the Government of Indonesia over a period of one and half years, in (i) building institutional capacity in development and implementation of a medium-term reform agenda in RG financing and governance; and (ii) facilitating the achievement of targets and commitments in Subprogram 2 of the LGFGR 2 policy matrix.

PDP provided the services of a Fiscal Reform Expert to oversee the implementation of a major embedding of intergovernmental reform. Responsibilities included:

• refining and strengthening the policy matrix: strengthening the specificity and quality of reform measures outlined in the draft policy matrix and providing support in finalising the program
• harmonising the regulatory framework: mapping out a sequence of ideal regulations that fit with the overall spirit of the program and drafting specific recommendations
• coordination at the central level: providing advisory support to the newly established Directorate General for Financial Management in the Ministry of Home Affairs (MOHA)
• pursuing the earlier outline of the Academic Paper on the proposed National Action Plan for Decentralisation and drafting an initial version of the Academic Paper.

PDP assisted the core component of the Local Government Finance and Governance Reform Sector Development Program (LGFGR-SDP), which focused on enhancing transparency, accountability, efficiency and effectiveness in the delivery of basic services at local level. Objectives of the program included:

• strengthening the of legal and regulatory framework guiding regional autonomy and fiscal relations
• improving the equity and efficiency of inter-governmental relations
• strengthening local public expenditure and financial management through planning, budgeting and debt management reforms, and through enhancing national and local government institutional capacity.

The PEM Expert was responsible for ongoing legal and regulatory reform initiatives, in terms of the adequacy as well as desirability of the proposed reform measures, and for proposing a full sequence of legal and regulatory reforms to be implemented through the program. PEM reform measures that could be supported through LGFGR-SDP in selected provinces and districts, and in relation to intergovernmental fiscal transfers, for proposing a reform agenda to strengthen the block transfer system and the earmarked transfer system were designed. Further, advisory support to the newly established Directorate General for Financial Management in the Ministry of Home Affairs (MOHA) was provided.

PDP was contracted to help strengthen the Regional Regulation (PERDA) review and assessment process through the development of an information management system covering the review process relating to the promulgation of local government taxes and charges. This called for an assessment of the current PERDA review processes, using a process mapping approach to track the “as-is” processes used by MOHA to assess consistency of regulations. Recommendations included the introduction of a re-engineered best practice process to become the basis for an automated information system to facilitate the PERDA review process. The transformation and streamlining of the review and processing of PERDA aimed to bring major benefits towards significantly improving the revenue situation at the regional level.

The program focused on the PERDAs pertaining to local taxes and charges. The information system developed was scalable to accommodate the review of PERDAs other than those on local taxes and charges, as well as to support the Monitoring and Evaluation (MONEV) system under the Directorate of Facilitation, Policy, and Reporting of Regional Autonomy. The team also assessed the level of regional compliance with the requirement to submit new regional regulations to the centre.

PDP provided a team of experts to review the adequacy of procedures relating to the identification, location, securing and holding of evidence at all stages of a case from investigation to brief preparation and production in court during a prosecution. The team explored the needs of the Special Crimes investigators of the Kejaksaan Agung – commonly known as the Attorney-General’s Office – the combined Attorney-General and Public Prosecutor in the Indonesian legal system together with those of investigators of the Indonesian Anti-Corruption Commission – Komisi Pemberantasaan Korupsi (KPK). Both sets of investigators were studied simultaneously in order to enhance consistency in law enforcement and seek opportunities for cooperation and mutual understanding across agencies.

Recommendations were provided for enhancing and developing the legal and or procedural framework for both the Kejaksaan and KPK, including:

• study tours to Australia and/or other regional investigations bodies
• technical assistance for immediate and longer term enhancement of evidence handling law and procedure
• assistance with the development of practices and procedures
• analysis of other needs such as infrastructure and equipment, if needed, to properly institute sound evidence handling procedures.

The project contributed to the ability of anti-corruption investigators to manage the collection, storage and transfer of evidence in a legally sound and professional way. It was particularly aimed at preparing anti-corruption investigators and prosecutors working in the more complex areas of financial crime involving document handling and electronic information.

A process mapping approach was used to track the “as-is” processes used by MOHA to assess consistency of regulations. The consultant team documented the current PERDA review process, including the respective responsibilities of the units and/or departments involved in the process and technologies used by the central government, particularly on taxes and levies, and identified areas that might be modified for automation.

The introduction of a re-engineered best practice PERDA review process was subsequently recommended, to be fully automated over time. The team drew up specifications for a proposed IT/IS system to support the re-engineered PERDA review process and presented an action program for transformation of the process. The information system developed was scalable to accommodate review of PERDAs other than those on local taxes and levies as well as supporting the Monitoring and Evaluation (MONEV) system under the Directorate of Facilitation, Policy and Reporting of Regional Autonomy. The system was to be administered by MOHA, however it was accessible to other ministries such as the MOF and regional governments. It also offered limited public access and a complaint mechanism to ensure transparency and good governance.

The consultant team adopted a learning-by-doing approach by working together with the counterpart team members and conducting formal and informal knowledge sharing sessions, specifically on the relevant information technology/system options. In addition, the consultants developed a Diagnostic Tool to assist in examining review and storage processes for regional regulations on matters other than taxes and charges.

PDP provided assistance to the Commission for Eradication of Corruption in Indonesia, Komisi Pemberantasan Korupsi (KPK), in anti-corruption legislation, building the anti-corruption institution, anti-corruption related training and business processes and operating procedures development.

A review of enabling legislation to which KPK operations are subject, together with legislation governing other law enforcement agencies, was undertaken to identify inconsistencies and conflicts that prevented KPK from effectively fulfilling its mandate. Assistance was provided in developing business processes, drafting KPK regulations, implementing procedures and guiding KPK’s cooperation with other law enforcement agencies and developing procedures for human resources management. An assessment of KPK staff member training needs was conducted and relevant training programs for the managers and executives of KPK’s four divisions designed and implemented.

PDP worked together in close cooperation with the Partnership for Governance Reform (PGR) in Indonesia and KPK counterparts, with responsibility for:

• Designing and developing Standard and Operating Procedures (SOP) to support the main operation of KPK to handle complaints and to carry out detection, investigations and prosecutions of acts of corruption effectively
• Recommending and, after ADB, KPK and Partnership approval, procuring and installing information and communication technology (ICT) to provide supporting facilities that enable KPK to become fully operational
• Assessing KPK staff member training needs and designing and implementing relevant training programs,
• Helping to develop cooperative arrangements with those government agencies involved in enforcing the eradication of corruption laws and those other institutions relevant to ensuring the unhindered exercise of KPK’s detection, investigation and prosecution powers, and
• Reviewing legislation to which KPK’s operations are subject, together with legislation governing other law enforcement agencies, to identify inconsistencies, weaknesses and conflicts that hinder the KPK’s capacity to fully utilise its detection, investigation and prosecution powers.

PDP undertook a study to assess the budget and composition expenditure performance (and related tracking) and management practices within selected health institutions in West Java. The study tracked development budget flows (from the district budget and de-concentrated central budget) and mapped and assessed managerial practices and staff behaviour influencing resource flows at each institutional level. It also included an assessment of the relevance, and proposed and actual utilisation/spending of particular deliveries (drugs), while addressing the recycling of inappropriately allocated resources into required expenditure needs and leakages, as well as the flows between public and private services when this was relevant.

Information was gathered to provide: an estimate of the actual availability of funds for recurrent expenditures; an estimate of the resource needs for selected institutions to deliver the level and quantity of services needed at a reasonable cost and quality; and an analysis of how and to what extent institution staff had mobilised additional resources. A review and analysis was also carried out of key rules and regulations regarding the health budget, and demonstration provided of the links between different institutional levels to illustrate the major obstacles to and opportunities for reform.

PDP provided technical assistance in support of public financial management reforms, enhanced intergovernmental coordination on decentralisation reforms, development of minimum service standards (MSS), liaison work and capacity building for the Ministry of Home Affairs (MOHA), provincial and local governments in public expenditure and financial management reforms and the new regional representative council with respect to decentralisation reforms and related IT assistance.

PDP provided leadership and technical assistance in fiscal and administrative decentralisation reforms. Key tasks included:

• drafting of the National Action Plan for Decentralisation (NAPD)
• drafting of background technical papers on functional assignments, focusing on the definition and allocation of responsibilities between different levels of government
• preparation of an analytical paper on the provincial and sub-provincial fiscal capacities and needs
• monitoring key legal and regulatory development and changes in near or medium term operational priorities of the concerned ministries
• related PEM capacity building, including the development of PEM modules (covering planning, budgeting expenditure and financial management aspects) and the design and implementation of a high level seminar on fiscal decentralisation.

PDP provided specialist services to contribute to the development of the International Trade in Services Strategy and Negotiating Guide by preparing negotiating guides for 10 service sectors in Indonesia. Further assistance was provided by PDP to support to the Government of Indonesia in undertaking policy research and analysis on international trade in logistics services, specifically on what to do at international trade negotiations to improve Indonesia’s international trade in logistics services. This included the preparation of a policy research and analysis report on Indonesia’s international trade in logistics services, dissemination of the results from the policy research and analysis report to relevant stakeholders, and building the capacity of Ministry of Trade staff to undertake policy research and analysis on international trade in services.

PDP provided the services of a Trade Economist and Evaluation Expert to participate in a TAG mission, visiting and working with the ASEAN Secretariat in Jakarta to undertake an assessment to prioritise ASEAN’s Vientiane Action Program (VAP), 2004-2010. The team worked closely with the ASEAN Secretariat to define several detailed development priorities in a number of key sectors to allow ASEAN and AusAID to focus further ASEAN-Australia Development Cooperation Program (AADCP) assistance, and to allow ASEAN to focus its discussions with other dialogue partners. The mission concentrated more specifically on identifying the priority sub-sectors within the VAP which should be targeted for what remained of the funding for the Regional Partnerships Scheme (RPS).

The TAG team consulted with ASEC and AADCP staff to identify specific policy, institutional support and capacity building areas that RPS activities could support over the next two years, and considered the work streams and planned activities of other dialogue partners working with ASEC. The three Pillars of the VAP (Security Community, Economic Community, and Socio Cultural Community and the separate section on Goals and Strategies for Narrowing the Development Gap) were addressed.

PDP was engaged to conduct an assessment of the achievements of the ASEAN Framework Agreement on Services (AFAS) to date. In particular, the assessment addressed:

• to what extent AFAS achieved a deeper level (and wider scope) of bound liberalisation compared to GATS
• whether ASEAN was any closer to realising a free trade area in services
• whether there had been a substantial elimination of restrictions to trade in services amongst Member States
• whether AFAS had achieved greater regulatory convergence and cooperation
• what progress had been made in regulatory harmonisation and mutual recognition in services
• what forms of cooperation in services had been achieved in order to improve the efficiency and competitiveness, diversify production capacity and supply and distribution of services of their service suppliers within and outside ASEAN
• whether there was greater transparency and predictability in services liberalisation commitments
• what had been the value added of ASEAN’s regional approach to trade in services liberalisation.

Further, the team developed an assessment framework so that ASEAN could systematically evaluate progress under AFAS.

PDP completed Phase I of the public sector program in the Planning Institute of Jamaica (PIOJ) and the Works Division - Ministry of Transport and Works (WD-MTW), focusing on design of reform strategies, institutional renovation, mandate transformation and performance-oriented management of the two agencies. The PDP team provided organisational analysis, developed a modernisation strategy and prepared modernisation and transformation plans. The modernisation plan identified the best possible strategic positioning for the PIOJ and WD-MTW, consistent with the aims and objectives of the Government of Jamaica (GOJ) and the Public Sector Modernisation Program (PSMP), to introduce greater efficiency and cost savings and the PIOJ’s need for global positioning to influence the path and scope of national growth. As an adjunct to the Modernisation Plan, PDP prepared a Medium Term Financing Plan (MTFP) and framework document setting out the revenue and cost implications of the PSMP in the PIOJ over a three year period and assisted stakeholders to understand what the PSMP would mean for the future of the PIOJ.

The team undertook major restructuring of the PIOJ aimed at integration of strategic PEM processes between the PIOJ and Ministry of Finance in the area of strategic priority setting and resource allocation within a medium term expenditure framework. For WD-MTW, PDP’s work focused on its conversion into an Executive Agency through re-engineering/improvement of its strategic business, organisational and information systems.

PDP undertook an independent assessment of the relevance, efficiency, effectiveness, impact and sustainability of SMIS II. This included evaluation of:

• the flexibility of the project and if it effectively incorporated changes in the local environment and Ministry of Finance and Economic Development structure/needs
• the appropriateness of the Project’s implementation mechanisms and modalities
• the effectiveness of linkages with other technical assistance and the impact of donor coordination on the effectiveness of the Project
• significant long-term shifts in the organisation that can be attributed to SMIS II
• the value and appropriateness of monitoring and evaluation mechanisms
• the sustainability of SMIS II initiatives and any other project specific lessons learnt.

PDP also gave consideration to the future direction of Australian assistance to the public sector, providing advice on how SMIS reforms could be sustained and how to progress recommendations on financial management in Kiribati.

PDP provided long term assistance to the Ministry of Finance and Economic Planning (MFEP) to build capacity and to design, test and transform PEM processes and systems. A major component was to assess inter-sectoral resource allocation and the effectiveness of expenditure including the composition of sectoral expenditure. Sector expenditure priorities were redefined, including financing consistent with MTEF and sector policy. Extensive PEM process reforms were implemented covering linkages between planning and budgeting, medium term forward estimates system, output based budgeting and performance monitoring as part of budget process reform. A key element was internalisation of the PIP into the capital budget component of sectoral spending and the use of performance indicators in budget/actual reconciliation and feedback to framing the MTEF and rolling forward estimates. Comprehensive training of MFEP staff was an integral component of the project.

The purpose of this mission was to provide advice to the Governments of Kiribati, Australia and NZ on a strategic approach to implementation of a joint program of Australian and New Zealand assistance, targeted at improving public sector performance. The PDP team reviewed the current focus of Australian and NZ assistance to Kiribati for public sector reform (as well as that of other donors) and made recommendations regarding the strategic focus areas Australian and NZ support should target. The team also examined the mechanisms used to provide Australian and NZ assistance and provided recommendations on future delivery mechanisms. Further, the team was responsible for recommending effective risk management and monitoring and evaluation strategies.

PDP was engaged to improve financial and economic management capability within the MFEP and provide staff with the ability to allocate and monitor the use of resources more effectively and efficiently. The main focus was on transformation of the FMIS, including strengthening IT systems, procurement and installation of hardware and software and systems development. Comprehensive budget and financial management reforms encompassed:

• the introduction of output budgeting/accrual accounting, including development of guidelines and procedures for preparation of budget estimates
• re-engineering of accounting processes and information flows relating to funds management and cash control
• facilitating the transfer from manual to computerised accounting processes and the establishment of improved reporting and analysis techniques
• effective ex-post and ex-ante monitoring and assessment methodologies for social sector expenditure.

PDP undertook an initial IT strategic planning exercise to review the departmental business information needs and work flows, assess the existing information systems and IT infrastructure and to provide an assessment of future IT requirements in the MFEP. The review process formed the basis for a proposed IT infrastructure and implementation strategy.

A key outcome of the review was recognition of the need for an integrated planning, forward estimates, budgeting, financial (accrual) accounting, MIS computer system (including a payroll system) to be implemented in the MFEP Accounting Division and installed in the line ministries for remote access. In response to this need, PDP produced technical specifications for the integrated accounting systems and the layers of information management (MIS) with an IT technical infrastructure (networking components and hard and software) on which to operate the computer system.

A tender process was instigated to procure software, application development and services in providing a stable computerised Financial Management Information System (FMIS). PDP supported implementation of the new system, involving planning for development for the application and any necessary customisations.

PDP also played an instrumental role in ensuring the Year 2000 compliancy of all IT infrastructure (PCs, servers and network communications, OS software and applications software), planning for upgrading or replacement as necessary.

To ensure that maximum benefits were achieved from the proposed investment in IT, PDP implemented a comprehensive training program, incorporating both formalised and on-the-job training. This program allowed for continuous review of training needs.

PDP provided the services of a private sector specialist as part of a RETA which assisted with the formulation of Kiribati’s next Country Partnership Strategy (CPS), specifically through analysing the country updates since the previous PIER book, and distilling comprehensive country information to provide policy recommendations for the best strategy for economic growth and poverty alleviation. Our private sector specialist analysed and provided policy recommendations for expansion of the private sector investment, with a particular attention to identification of pragmatic growth drivers that could help the Government of Kiribati support employment growth. Furthermore, our specialist assessed the constraints and opportunities for private sector development country-wide.

PDP provided a comprehensive program of workshops, seminars and case studies to economic managers on all aspects of financial and economic management and reform, with an emphasis on the role of IFIs in external assistance programming and policy analysis. The program covered public expenditure management issues including external assistance relations and management, public investment planning and public expenditure programming, and focussed on social versus economic infrastructure allocations and budget reform.

PDP was tasked with the preparation of an accounting manual to be applied by the financial services of all Kosovo Consolidated Budget (KCB) spending entities. Our team undertook analysis of accounting processes for all types of expenditures, revenues, cash management and grants as well as identifying gaps in the KFMIS user guides and procedures. The team also provided training for building capacities of Treasury Department staff and key staff in line ministries on all aspects of the developed accounting manual.

The overall objective of the assignment was to enhance the reliability of the financial reporting of the Provisional Institutions of Self-Government’s (PISG), with a particular focus on institutionalising and harmonising accounting practices across the PISG and UNMIK administration in accordance with Cash Basis International Public Sector Accounting Standards.

The project encompassed Phase I of a comprehensive whole of government reform program aimed at major structural and process transformation of public management in Kuwait. In particular, the project assisted the Ministry of Finance to strengthen the contribution of budget preparation to the achievement of the government’s medium-term economic priorities and fiscal targets, and to the achievement of more efficient and effective expenditure programs.

The PDP team designed and led the functional review process covering budgeting and accounting operations at the Ministry of Finance, including preparation of methodology and diagnostic tools, training of working groups, and implementation of the functional and budget/expenditure analysis. A review of “as-is” processes (of the budgeting and accounting operations of the MoF) was undertaken, considering MoF's interaction with the Ministry of Planning, Civil Service Commission, Ministry of Health, Ministry of Public Works, Ministry of Foreign Affairs and Kuwait University to facilitate an understanding of the various types of organisations and the difference in processes. Subsequently, “to-be” processes were designed, incorporating best practices, and a gap analysis between the “as-is” and “to-be” models was presented. Based on the agreed “to-be” processes, inputs were provided to the requirements definition for the budgeting and accounting functions for the proposed integrated public sector IT system. Detailed design of the roll-out and the implementation strategy was presented, together with related action plans, emphasising appropriate change management strategies including provision of staff training.

PDP was responsible for the detailed design and implementation of a Planning and Performance Budgeting Systems (PPBS) framework, and provision of associated staff training and familiarisation exercises. The team were tasked with:

• specification of standardised formats for PPBS budgets including ministry vision, mission statements and objectives, program structure, program objectives and performance measures
• high-level design of “to-be” PPBS workflows and a PPBS framework for the MOF and line ministries
• development of a budget planning process focusing on programs
• definition of PPBS reporting requirements including the development of templates for quarterly and annual reporting of performance indicators
• provision of recommendations for legislative and administrative changes to support PPBS including necessary changes in the legislative and regulatory framework to support the introduction of PPBS
• assessment of training and human resource development needs in the MOF and line ministries for successful rollout of the PPBS
• preparation of a capacity and training needs assessment
• preparation of a detailed and realistic implementation schedule following consultations with line agencies.

PDP strengthened the capacity for financial management and planning of the public investment program (PIP) within the Ministry of Finance (MoF) by:

• assisting the organisational adjustment within MoF with clearly defined PIP responsibilities among various departments
• establishing an effective reporting and monitoring system
• improving short and medium term financial forecasting related to the PIP and its budgetary implications.

PDP conducted a functional analysis of the Public Investment Program (PIP) Unit and other departments within MoF related to PIP and submitted recommendations for further streamlining organisational structure, strengthening the PIP Unit and improving information flows. Tasks included analysis and reform recommendations to improve disbursement procedures for PIP so information on the flows of external resources for financing projects would be fully integrated into budget execution through the Treasury reporting system. A system was established that employed internationally acceptable methods to estimate and forecast both investment and recurrent costs of ongoing projects, and maintenance costs of finished or to-be-finished projects. PDP was also accountable for the review and improvement of methodologies being used for evaluating externally and domestically financed projects. Capacity building and systematic training was provided to staff at the MoF and other major line ministries.

PDP was involved in the pre-implementation phase of the Land Titling Project to provide more detailed project design and conduct a pilot study on land registration procedures. Team members formulated draft land administration policy and a capacity building program and prepared an extensive land management/ administration policy in relation to urban and rural areas. The focus was on public expenditure management/ social sector expenditure, addressing the revenue side implications of land administration policy, and the social sector impacts of resource mobilisation.

PDP provided a team to prepare an Environmental Overview document and to assist the government in preparing the Environmental Action Plan (EAP). Documentation was prepared covering legal, regulatory, institutional framework and EIA requirements, as well as action plans for environmental planning and management in natural resources, forestry, health, hydropower industry and mining. Extensive focus was placed on hydropower generation and the economic, social and financial sustainability of proposed large dam programs. A proforma set of procedures for assessing resettlement requirements and wider cultural/social impacts was completed as part of the EAP.

PDP provided assistance to Laos’ Science, Technology and Environment Organisation (STENO), particularly in relation to environmental policy formulation. STENO’s mandate and work plan were reviewed and updated, with guidance given on effective implementation of the mandate. A national Environmental Impact Assessment (EIA) system (relevant to sectoral level) was developed and comprehensive processes and assessment procedures presented for hydropower schemes in particular, including resettlement and local area action plans. A training and capacity building program was provided for STENO and selected ministries.

PDP undertaking this TA, the goal of which is to contribute to improved public financial accountability and transparency in support of the Government’s development and poverty reduction policy objectives. Consulting services are being provided across two main components: the first to improve the quality of reporting and internal control through the development of accounting and internal audit systems; and the second to improve effective state audit oversight of public finances and expenditures through upgrading capacity in the State Audit Office.

Key areas of assistance include: 

• implementation of the Government Financial Information System (GFIS) to the districts and preparation of the first set of consolidated financial statements 
• assessment of changes required to the Public Financial Management System (PFMS), implementation of these on a pilot basis, and preparation of a strategy to carry out the PFMS implementation 
• diagnostic review of changes required to accounting regulations and procedures and preparation of an implementation plan for their revision 
• review and revision of the 5-year strategic plan, policy statements, organisational structure, draft internal audit regulation, internal audit mandate, code of ethics, and internal auditing standards, for consideration, approval and implementation by MOF
• assistance to the State Audit Office with revision of its 5-year strategic plan, changes in operational practices, upgrading capacity and revision of Audit Laws 
• design and implementation of a series of extensive training modules on GFIS and PFMS implementation, new accounting regulations, fundamentals of accounting, fundamentals of audit and control, and audit regulations.

This project was aimed at the implementation of sustainable land administration and titling processes in Laos. Key objectives were to foster the development of efficient land markets and to facilitate the utilisation of domestic resources.

PDP provided land administration policy services to assist the Ministry of Finance in preparing a comprehensive reform to land administration, involving legal, financial, taxation and institutional reforms. A detailed assessment of the social and financial impact of the proposed policy reforms was undertaken. Full analyses of the land administration tax, fees, cost recovery and the socio-economic impact formed the framework for the review.

The project involved a comprehensive analysis of the development impact of the Nam Theun II Hydro development, including the impact of the dam on agricultural production, practices, sustainability and social cohesion. PDP provided the services of an Agricultural Sector Specialist to undertake the agricultural sector regional analysis, provide quantification of the level of impacts, and contribute on the analysis of financial and economic impacts.

PDP provided the services of a Private Sector Development Specialist to survey private firms and review the policy, institutional framework and enabling environment for the development of the private sector in Lao PDR, as well as providing a strategy for Bank assistance. A restructuring program of remaining state enterprises was also presented.

This project sought to improve public expenditure management processes in contribution to the allocation efficiency of public resources according to the Government’s development and poverty reduction policy objectives. PDP provided long-term technical assistance to improve the quality of fiscal planning and enhance capacity within the relevant MOF departments and government agencies involved in the fiscal planning process. This involved an assessment of the present fiscal planning process and progress to date, with challenges and opportunities identified and addressed in the development of a coherent medium-term expenditure framework (MTEF). The team also provided training on fiscal planning, budgetary systems, international public financial/expenditure management standards, and computer models and database systems to the relevant MOF departments. Furthermore, PDP led the automation of fiscal planning and budgeting processes, with responsibility for developing and customising simple-to-use computer spreadsheets and database management models.

PDP provided expert advice to the Prime Minister’s Office (PMO) and Committee for Planning and Cooperation (CPC) on the social infrastructure sector (health, education, women and children) and community level planning for component of the Socio-economic Plan to the Year 2000.

PDP provided technical assistance to the Committee for Planning and Cooperation (CPC), the entity responsible for all economic planning and management, with the aim of strengthening its economic and financial management capabilities. Assistance was provided to CPC staff in the design and implementation of a planning system incorporating macro and sectoral policy and investment programming and the introduction of associated planning tools, as well as production of annual and medium term (five year) strategies and a public investment program. Technical training was provided to government staff in economics and planning, and extensive macroeconomic and sectoral analysis completed as part of the preparation of the medium term strategy.

PDP provided advisory assistance in public expenditure management to assist the Government of Latvia in the design and implementation of new components of ongoing PEM reforms. Component I involved the preparation of processes and systems for improving the macroeconomic and fiscal policy framework, strategic priority setting and budget planning. Component II involved the preparation of PEM and institutional/functional reviews for line agencies, focussing on strategic priority setting and resource allocation within a consistent medium term framework, performance based budget planning and budget integration. In addition, work focused on assisting the Ministry of Finance in preparing the Guidelines for Macroeconomic Development and Fiscal Policy 2002 to 2006.

PDP prepared policy papers on the implications for policy making of a medium term fiscal framework and the process changes required at the centre of government and the adjustments required to complete the process of budgetary reform. An assessment of PEM reforms and the quality of macro and fiscal forecasts was completed. An action plan was prepared for incorporating a MTEF, use of forward estimates and performance based budgeting and use of budget monitoring indicators to establish spending priorities. Assistance was provided in the preparation of a fiscal policy statement. A key task was developing a methodology for public expenditure reviews and ensuring broad participation and ownership in the Ministry of Justice, Agriculture and Finance through working groups and key counterparts. PDP consultants ensured the readiness of working groups to sustain the work through training, information sharing and sensitisation to public expenditure management issues.

PDP provided technical assistance to strengthen the government’s capacity to prepare the 7th National Development Plan (NDP). The purpose was to ensure that the Government had in place a first draft of the 7th NDP and was in a position to draft an action plan that:

• identified and ranked actions to be taken during the period covered by the 7th NDP
• aligned external funding resources with the priorities of the 7th NDP
• set priorities for the medium-term budgetary framework in such a way that it supported the areas of priority in the 7th NDP.

The PDP team was responsible for studying the existing processes used by the Government to prepare MTEFs, reviewing and assessing the strengths and weaknesses of the 6th NDP and the process of its implementation, and assessing the existing monitoring and evaluation systems in the public sector. The consultants provided advice and assistance to the Government on preparing a results-based NDP and assisted the Government in synthesising the various inputs received from consultants, stakeholders and other sources into a coherent national plan. Further, support was provided to line ministries to produce medium-term sectoral roadmaps for the development of the core sectors, to serve as good practice models for the preparation of other sectoral roadmaps by the Government. The team was also accountable for conducting workshops to enable the ADB and the Government to communicate with the country stakeholders the objectives and the goal of the process of preparation of the 7th NDP and to receive input for its design.

PDP undertook a comprehensive environmental assessment as a fundamental component of this project aimed at community development through resource mobilisation in the Southern Atolls area. The assessment included an analytical overview of the natural resource base relevant to the project, environmental legislation and policy, and the institutional arrangements for environment. Project proposals were subjected to environmental screening and scoping, with assessment made of the likelihood and significance of all environmental and natural resource management issues identified that might be induced by the project or might negatively affect the project. Detailed guidance was provided for avoiding or mitigating any environmental issues judged to be both likely and significant. An environmental management plan was also prepared, including detailed specification of mitigation measures, specification of environmental monitoring arrangements as required and proposals for further study.

PDP was engaged by the ADB to prepare a Country Strategy Program Completion Report (CSPCR), as an input to the Country Partnership Strategy (CPS) process for the Maldives for the period 2007-2012. The report focused on:

• whether the ADB pursued the correct strategy
• whether the ensuing operational program delivered on the strategy
• what results might be expected from ADB operations approved/undertaken during the CPS period
• how well ADB responded to changing circumstances
• what lessons emerged that should be taken into account in formulating the new CPS.

PDP provided technical assistance to the Maldives Public Service Division (PSD) with the overall aim of strengthening governance and improving the efficiency and quality of service delivery in the public sector. Specifically, PDP was tasked with preparing a plan to establish a Government Public Service Training Center (PSTC) and helping to increase the knowledge and improve the skills of PSD staff members, as well as of staff members of selected ministries, in modern human resource management and organisation development concepts and processes. Furthermore, the team prepared a strategic reform plan for building a performance-orientated public service.

PDP provided the services of a Health Information and Statistics Expert as part of the project to develop and improve the system-wide data-based decision-making and health information system. Assistance was provided to the national Health Statistic Officer (HSO) in reviewing data and indicators currently available, and assessing and prioritising the needs for collecting and producing information on disease surveillance, preventive and curative activities and health facilities management. The consultant recommended a common data reporting and processing format/system and designed new procedures to be implemented. Furthermore, the consultant assessed the training requirements and developed a training program for health staff in each state in collecting/reporting data, and using information produced.

PDP provided technical assistance to help strengthen and develop the institutional capacity for economic policy making by providing economic policy advice and public sector management at the state level. Core components included:

• improving the institutional capacity for economic management
• state-level capacity building
• macroeconomic policy advice
• public sector management
• compact advisory support
• development of the post-compact structural adjustment program
• coordination and support for private sector development
• outreach and information systems.

Support was provided to the Chuuk State Department of Treasury with particular emphasis on updating accounts payable, and a diagnostic review was performed to determine current staff capacity. The consultant also facilitated the development and institutionalisation of the Public Sector Investment Program as an accountable and transparent process in the State Government.

PDP provided services for the PSDP design disbursement, procurement and recruitment procedures and guidelines under the program and for preparing guidelines and supporting the Department of Economic Affairs (DEA) in recruiting consultants under the loan proceeds. The objectives of the PSDP were to improve the policy and legal environment for private sector development and strengthen capacity to manage land, labour, and capital resources, with the goal of promoting economic growth by expanding the private sector in the FSM, thereby raising domestic employment and incomes and reducing dependence on external assistance.

Key tasks included the design and implementation of a national and state implementation and performance monitoring and evaluation system, including the training of DEA and state counterpart staff. The establishment and start-up of national and state level steering committees, specifically the Business Development Councils or their equivalent in four states, was completed. Assistance was also provided to DEA and national and state steering committees to publicise the improvements under the program and support the Secretary of Economic Affairs in providing overall direction to consulting services delivered through the investment component.

PDP participated in a project aimed at promotion of economic self-reliance and growth in FSM from increased food production and productivity for self-sufficiency and export, and at strengthening the capacity of the government agricultural support services. The PDP Agricultural Extension Specialist identified priority commodities at the subsistence or semi-commercial level for both self-sufficiency and marketing purposes. An investigation identified the technical information available in FSM for extension use and the consultant established a workable, responsive system for ensuring that information reached all national and regional users. In-service training for department staff in technical aspects and extension approaches was developed and delivered as an integral component of the project.

PDP provided the services of a Human Resource Management Specialist to prepare an inception report for the proposed TA. The TA was focused on enhancing the audit and administrative processes of audit offices necessary to effectively carry out productive and efficient audits. Specifically, the specialist was responsible for preparing a work plan including scheduling for the proposed TA activities.

PDP provided assistance to the Moldova Customs Service (MCS) for the introduction, organisation and implementation of selectivity based control and management of transit operations. In particular the team provided assistance to:

• revise customs legislation, ensuring that all necessary provisions of application of the legislation were in place
• review the organisation structure to ensure the availability of qualified and trained staff and to establish clear roles, responsibilities and levels of authority for customs personnel
• review and improve transit control procedures and operations
• define methodology to develop yearly control and management of transit operations strategic plan
• draft a transit operations risk guideline, listing practical risk identification, and train trainers on risk assessment, targeting and selectivity criteria methodology
• encourage efficient utilisation of automation (ASYCUDA World) for management of the transit control and financial guarantees.

PDP prepared a paper on external aid use and allocation for the 1996 Mongolian Aid Group (MAG) conference in Tokyo. The paper detailed historical expenditure of external resources, medium term PIP requirements and projected mid term sectoral assistance requirements, and focussed on social sector resource mobilisation and allocation arrangements consistent with the policy framework.

Against a background of macroeconomic stabilisation and structural reforms highlighting the consolidation tasks that remained, PDP assessed Mongolia’s opportunities for turning comparative advantages identified into competitive advantages. A development vision was proposed that consolidated the economic and institutional reforms and included a medium term strategy.

A major component was the completion of a background paper on the development strategy. The paper:

• described progress in macroeconomic stabilisation and structural reforms
• commented on the status of major sectors in the economy and cross cutting issues such as environment, poverty, social welfare and regional development
• presented a clearly defined development vision for Mongolia
• outlined the preferred economic and social development paths over the medium to longer term required to achieve the vision.

Macroeconomic, institutional and sectoral strategies and related investment options were presented and financing strategies and options included.

PDP was retained at the request of the Minister of Finance and Economics to prepare papers for the Mongolian Aid Group covering government development strategy, macroeconomic reform priorities, sector strategies and priority expenditure programs to the Year 2000. A medium term PIP and a financing plan were prepared and submitted to Cabinet for approval as the capital budget program. Priorities for the medium term and a new aid management policy were also identified for inclusion in the papers.

PDP provided technical assistance to support balanced and equitable regional development, with the aim of strengthening the capacity of the government for policy analysis and development management, and helping to establish systematic and structured development planning functions. Assistance included an assessment of the economic rationale and financial viability of the Regional Development Corporation (RDC), an assessment of the economic basis for the inter-relationships between existing policies, plans and strategies, and an examination of the strengths, weaknesses and opportunities for market competitiveness of national and regional economies (prioritising investment areas with a consideration of economic perspectives and the impact of poverty reduction). On this basis, an integrated medium term regional development plan was prepared, incorporating implementation strategies and operational guidelines. Overseas training was provided to senior government decision makers, policy makers and technical analysts to support capacity building. Recommendations were made for establishing an independent policy development unit to function as a policy development think tank and to help policy makers implement informed policy decisions based on sound analyses.

PDP has been contracted by the World Bank to support the Mongolian Civil Service Council in the development of proposals for a new civil service grade structure, to conduct a sample survey of pay in the civil service, to identify benchmark jobs; and to undertake a pay comparator study with selected private sector organizations.

PDP provided long-term assistance to the Government of Mongolia to streamline and strengthen institutional arrangements and capacity for civil service management, financing, coordination and accountability. The assistance focused on three core tasks:

• strengthening civil service management capacity and professionalism by implementing the civil service reform strategy and conducting agency level efficiency reviews
• rationalising the civil service wage bill, incentives and employment by formulating a wage, compensation and severance policy reform
• strengthening accountability for performance by devising accountability systems and income-asset declarations and reviewing/preparing regulations and operational manuals.

PDP provided technical assistance to:

• assess how the ADB could best assist in building the institutional, administrative and financial management capabilities of local government in the context of decentralisation and other donors’ activities
• identify priorities and approaches for further ADB assistance.

A review was conducted of the structure, functions and staffing levels of the Governors’ Offices at two sample aimags, together with a preliminary needs analysis for improving institutional, administrative and financial management capabilities. Review and assessment was undertaken of the existing:

• budget processes and level and structure of the resulting budgets of the local governments
• screening and selection mechanism for investments at the local government level
• laws, regulations, policies and strategies in decentralisation and local self governance and the relationships between the local and central governments.

A review was conducted of the project profiles proposed by the Government of Mongolia for donor assistance for the Decentralisation Support Sub-Program of the Management Development Program, to refine the scope of Bank assistance. Inputs were provided to the preparation of a Memorandum of Understanding, including defining the objectives, scope and costing, implementation arrangements, timing and terms of reference. A report was also prepared outlining the organisation, structure and function of local governments in Mongolia and their relationships with central government.

PDP provided assistance to the Government in the development and implementation of methodologies on asset valuation. PDP’s consultant focused on several critical areas to improve the existing asset valuation framework for the Government, including: 

• reviewing the current asset valuation framework and providing recommendations on formulation of national law and regulations in compliance with the International Standard and experience 
• providing assistance in implementation of national regulations and methodologies on asset valuation 
• providing trainings and workshops to improve capacity and practical experience of the asset valuators.

PDP provided technical assistance in support of the government’s priorities to improve health services at the sub-district level in selected provinces. Assistance was provided in:

• upgrading bag level health services
• rationalisation and improvement of district health infrastructure to support referral and supervision
• design and implementation of systems for community participation in health care financing, essential drugs, sub-district and district level logistics, supervision and management and health information
• training in health services and health institution management.

Specific tasks included a review of the government’s fiscal situation in the health sector, an assessment of existing private health sector activities, and the identification of legal reforms, mechanisms and incentives to support the development of the private health sector in Mongolia.

PDP provided the services of an International Tax Specialist to develop consistency in the application of national rules on Government taxes (customs, excise, VAT, income tax) on projects funded by International Financial Institution (IFI) grants and credits in Mongolia. Responsibilities included:

• detailed review of existing tax legislation and guidelines and international treaties concerned to the tax issue of the projects financed under external grants and credits
• analysis of the application of taxes to ongoing projects funded by different IFI and donor countries
• comparing relevant practices in other countries
• providing recommendations on the application and use of existing tax rules and international treaties, and recommendations on amendments to the relevant legislation and rules, if necessary
• conducting workshop/seminars to central government agencies.

PDP assisted the Government of Mongolia to prepare and implement the Poverty Reduction Support Credit (PRSC) program. Help was provided to the authorities to undertake the necessary analytical work, update implementation action plan of the mid-term civil service reform strategy recently approved by the Parliament, and prepare policy and institutional reform recommendations in the area of administrative and civil service reform.

Provision of eight person (four international and four local) team to assist in implementing the local government component of public sector management and reforms, including design, testing of financing mechanisms, establishment of new budget and financial management systems and the FMIS, legal and regulatory framework and establishment of accrual accounting systems at center and provincial level.

Work occurred in relation to the composition of expenditure and the assignment of key social sector expenditures between different levels of government. There was also a focus on the delivery of health and education service in decentralized locations.

PDP provided policy and strategy assistance to support reform of intergovernmental relations, encompassing financial, structural and organisational, and legal and regulatory adjustments. The assignment involved extensive policy dialogue and the preparation of a framework and action program for intergovernmental relations reform including resource allocation and service delivery arrangements in the social sector at national and provincial levels. PDP was also involved in the preparation of the Phase II program for Bank financing.

PDP facilitated the introduction of public administration and intergovernmental finance reforms focusing on intergovernmental financial relations, a shift to output budgeting, the user-provider model and accrual accounting systems for public sector management. Tasks included design and testing of financing mechanisms, establishing new budget and financial management systems and FMIS, defining the legal and regulatory framework, and establishing accrual accounting systems at centre and provincial level.

This project entailed a mid-term review (MTR) of the Mongolia-Australia Capacity Building and Small Activity Facility (CaBSAF) to assess its progress and management. The MTR team reviewed and commented on progress of the Facility activities and advancement towards the achievement of the stated objectives and outputs, and made recommendations for improvement. As a key member of the MTR team, PDP provided the services of a Public Sector Reform/Human Resource Development specialist. He imparted expert advice on public service reform and human resource development in Mongolia and internationally as appropriate. The consultant also had primary responsibility for assessing the scholarship program, particularly its integration into broader human resource development strategies and priorities.

PDP provided assistance to the Ministry of Finance and Economy, with a particular focus on the Economic Cooperation Management and Coordination Division, in the preparation of studies, analysis and documents for the 2002 Consultative Group Meeting. Work included a macroeconomic analysis covering the period June 2001 to June 2002 with a focus on sources and uses of foreign assistance and coordination of foreign assistance, pro-poor growth strategies and external financing requirements.

PDP provided the services of a PEM/Aid Management Specialist to assist the World Bank Resident Office prepare all Consultative Group Meeting papers, including a policy/strategy framework and aid utilisation requirements.

PDP staff undertook an assessment of the state of overall public financial management in Mongolia, contributing to the financial management section of the governance assessment of Mongolia. A program to support the implementation of measures to strengthen public sector financial management was formulated, focusing on institutional measures, interim legal and regulatory measures and capacity assessment. Specifically, the consultant evaluated Mongolia’s:

• revenue administration
• public expenditure management
• social sector program financing including social assistance overhang
• public sector accounting, internal control and auditing
• ongoing public sector financial reforms
• current state of fiscal relations and the capacity and resource implications of ongoing reform measures for centre-local fiscal relations.

PDP assisted the Government of Mongolia and the Ministry of Finance and Economic Planning (MFEP) to establish an outcomes-based public expenditure management (PEM) system to provide the necessary framework for planned public administration reforms. PDP helped the MFEP design and implement a reformed PEM system that improved institutional arrangements, accountability and transparency relating to aggregate fiscal discipline and the allocative and operational efficiency of budgets.

Responsibilities of the PDP team included:

• training domestic consultants and key MFEP officials in applying objective criteria for selecting and prioritising public investment projects
• training and assisting pilot agencies in preparing forward estimates
• developing and helping implement the top-down components of an MTEF, including a system for setting medium term strategic priorities and sectoral budgetary ceilings for ministries that build on the PIP process.

PDP provided advisory technical assistance to the National Development Board of Mongolia to design and implement a development planning model. Expertise was applied to analysing current planning processes and systems and assisting with the design of a planning system linking macro and sector policy and investment programming. Key achievements of the project were the adoption of PIP processes incorporating a medium term framework, integration of PIP into capital budget, adoption of a systematic cycle of priority setting of PIP processes and establishment of an effective monitoring system for PIP projects.

PDP assisted the Government of Mongolia to implement a performance-based budgetary and public administration system strategy. The project pilot-tested output-based budgeting, medium term planning, accrual accounting, financial reporting practices and performance-oriented administrative reforms of five pilot central government agencies in two pilot provinces. The PDP team supported the Ministry of Finance and Economic Planning, the pilot agencies and pilot provinces in: preparing accrual accounting for selected entities in the two pilot aimags; preparing a study on the relationships of governance reforms and decentralisation; preparing functional reviews of the decentralised structure of the six pilot agencies (with bottom up feedback from the two provinces); and implementing the management change proposed in the functional reviews. PDP also made recommendations for broadening the decentralisation reforms to other ministries.

PDP consultants provided assistance to the President, Cabinet, Minister of Finance and Parliamentarians on economic policy and fiscal issues facing Nauru with the objective of enhancing the Government of Nauru’s ability to implement economic policy, and to assist in implementing a realistic medium term economic budget strategy. The team reviewed current governance arrangements applicable to Nauru’s government enterprises and trusts, and advised and assisted with the implementation of changes, including the preparation of a legislative review. An assessment was made of the annual budget process, with recommendations and assistance provided on the implementation of improvements with a focus on forecasting revenues, identification of revenue enhancement, prioritisation of expenditures and transition to transparent and cost effective financing options. Assistance was also provided on budget preparation and submissions for 2001/2002, 2002/2003 and 2003/2004.

PDP provided the services of an Economist as part of a five-person team preparing a four year (2005/6 to 2008/9) Country Strategy that structures Australian assistance to make the most effective contribution to addressing Nauru’s long-term viability, provides an effective operating environment for the Offshore Processing Centres (OPC) and enables the transition to a more sustainable aid relationship.

PDP’s economist was responsible for:

• contributing to team discussions and analysis from an overall strategic and economic planning/public finance perspective
• ensuring affordability and public finance discussions were taken into account and incorporated within the design of the core team outputs
• inputting to team discussions prior experience in Nauru and knowledge of the inside-systems and limitations within Government.

The overall objective of the assignment is to prepare a comprehensive Public Financial Management – Performance Report (PFM-PR) in accordance with the Public Expenditure and Financial Accountability (PEFA) methodology, which will provide an assessment of the current performance of Public Financial Management (PFM) processes and systems in Nauru.

PDP prepared the Agricultural Sector Program Loan based on an analysis of Agricultural sector strategy, including a review of agricultural adjustment priorities and balance of payments requirements. It involved the design of the agricultural adjustment matrix, including the social sector impact of the adjustment program and definition of the policy adjustment program.

PDP was engaged to provide technical assistance across whole of government to enhance the Government of Nepal’s capability to lead, coordinate and support the implementation of its long term governance reform strategy. Capability was developed by assisting the government’s own staff to work towards key reform milestones, emphasising measures to improve efficiency, reduce corruption, strengthen personnel management and enhance performance management.

Key tasks included:

• the design and implementation of redundancy and voluntary early retirement schemes
• supporting the MoF in developing policy and related procedures to devolve non-core and executive functions of government
• supporting the Financial Controller General’s Office in developing proposals to strengthen establishment and payroll controls in order to enhance control of the public service wage bill
• supporting and guiding the Ministry of General Administration to develop policies and procedures for employee recruitment, promotions, transfers and discipline
• supporting the development of a long term civil service pay policy
• establishing a sound foundation for introducing a computerised personnel information system in order to support personnel decision making as well as enhancing payroll and establishment control
• reviewing the institutional framework and proposed legislation for combating corruption and assisting with building the capability of the Commission for the Investigation of the Abuse of Authority
• analysing the expected negative and positive impact of the governance reform program on poverty and gender.

PDP provided support to individuals and teams through effective mentoring, coaching and interactive training, and undertook direct change facilitation skills with local staff through a series of workshops and forums in the areas of anti-corruption, anti-money laundering, performance management, implementation of a personnel information systems and civil service reform.

PDP completed a study addressing Pakistan’s ability to continue to meet its foreign exchange obligations on energy sector investments, where US dollar commitments were common. The team assessed the basis for economic growth forecasts, ie where growth was expected to occur over the next decade and which value-adding sectors were expected to support the economy, together with major risks to economic growth and scenarios associated with those risks. Consideration was also given to the beneficial impact of proposed energy sector investments on the economy and the implications of lower than expected economic growth and an unsustainable current account deficit for foreign investors relying on Government of Pakistan US dollar contracts.

PDP provided the services of a Trade/Industry Specialist to prepare an analytical models analysis of trade regimes and their impact on investment risk and IFC exposure. A model was established for the analysis of financial and economic returns and impact/exposure to trade and industry policy protection.

PDP undertook a comprehensive analysis of the Papua New Guinea 2001 Budget with a particular focus on the budget’s ability to address the development components of the government. The analysis highlighted differences in priority between the PNG Government’s Development Strategy and the AusAID PNG Development Strategy. A detailed review was provided on the ability of the budget to address each priority sector, with particular focus on the budgets ability to meet the requirements of proposed expenditure. Analysis was also provided on which line items in the PNG 2001 Budget should be included in an assessment as to whether the benchmark targets outlined were likely to be met in 2001.

PDP was engaged to examine the financial cost to the Government of Papua New Guinea (GoPNG) of its National Education Plan (1995 to 2004). The project encompassed:

• developing a resource allocation assessment model and analysing education financing trends over 1997 to 2003
• developing sector and sub-sector projections of revenues, expenditures and financing 2004 to 2015
• financially modelling the period 2004 to 2015 under different policy scenarios.

The PDP team provided a realistic analysis of the financial implications of policy options for implementing the GoPNG’s National Education Plan and designed a comprehensive and practical model of the education system which could be readily used as a tool by education planners and financial managers at the national and provincial levels and for each education sub-sector.

PDP undertook a study of the unit costs of education in schools and vocational centres in PNG. The overall aim was to ascertain the total unit cost of educating a student, at different levels of the education system and in different parts of PNG, based upon a basket of goods and services. Within this, PDP’s team ascertained the non-teaching costs incurred by schools, at different levels of the education system and in different parts of PNG, based upon a newly specified basket of goods and services.

PDP also focused on strengthening the capacity of staff in the Department of Education responsible for these policy areas. This included the provision of on-the-job training, support and mentoring, in particular to ensure officers acquired skills and techniques which they can use to develop and update unit costing.

PDP undertook a detailed assessment of the PNG fisheries sector to assist PNG authorities in defining fisheries sector policy objectives for the following five years. Critique was provided on economic strategies and policy objectives as they related to the fisheries sector, with comment on the degree to which current policies supported added local value in fisheries. Examination was also undertaken of:

• investment, competition and industrialisation policies as they related to the local development of fisheries industries
• economic policies as they related to improved access to land, a more competitive labour market and the expansion of domestic capital, as well as to all proprietary rights to engage in business.

A summary was presented on current levels and trends in resource output, distribution of output benefits and their contribution to GDP, sector employment and the distribution of employment, domestic resource consumption and its contribution to nutrition and resource imports, exports and contribution to the external account.

PDP advised on major structural and process reforms including downsizing, budgetary and expenditure management reforms, the introduction of output contracting processes, and reform of central/provincial linkages for the Minister of Planning and Prime Minister.

A comprehensive program of functional reviews was completed for key machinery of government agencies including the Department of Finance and the Department of Personnel Management. Findings from the analysis were widely discussed with government reform teams and a restructuring and divestment plan for central government was completed. The restructuring program focussed on clustering of government departments and downward decentralisation of services to lower level governments, as well as consolidation of budgets over the medium term. An explicit focus was the requirements for effective performance-based management and improved accountability for improved services.

PDP assisted with restructuring the Department of Agriculture and Lands within the framework of the Government’s public sector reform program. The methodology for the diagnostics was designed collaboratively, with data collection completed prior to comprehensive assessment of structural and organisational reforms. Functional reviews were completed for all service areas and at an intergovernmental level including an assessment of the policy framework, institutional and organisational arrangements and constraints in terms of quality of service levels, rationalisation of non-core functions, and medium term capacity building priorities. A comprehensive revitalisation and reconstruction plan was prepared and workshopped prior to submission to Cabinet for approval. Divestment of non-core activities was proposed as well a financing and costing program within the framework of the national budget.

PDP provided the services of a public finance specialist to lead a design mission team in producing a project document to form the basis of UNDP’s future decentralisation intervention relating to financial improvement at the provincial level in PNG. The mission team identified key issues to be addressed by the project and developed an appropriate project implementation approach and strategy to allow strategic targeting, priority setting and sequencing.

PDP provided a Treasury Budget Adviser to work with the Secretary, Department of Treasury, the First Assistant Secretary (FAS) Economic Policy Unit (EPU) and other senior officers and advisers in EPU. The consultant acted as a mentor and supported the FAS in the planning for, and delivery of, the 2003 budget, with emphasis on improving the integrity of the budget in cash management, accuracy of data, improved cost estimates and a firmer basis for the forward estimates of expenditure and revenue. A detailed report summarised the reforms achieved and identified further practical reforms to be implemented in EPU and in related areas of the Department following the delivery of the budget. A detailed assessment of skill requirements and staff development in EPU and related divisions was also undertaken to enable the reforms to be successfully implemented.

PDP provided a team of consultants in support of the Public Expenditure Review and Rationalization (PERR) Project for improving statutory authorities’ governance. The team suggested legal amendments to relevant legislation and assisted the preparation of a policy submission to the National Executive Council (NEC). The NEC policy submission outlined proposed amendments to the Public Finances (Management) Act (PFMA) and statutory authority legislation, with the objective of improving the statutory authority governance framework.

The project focused on work with the Department of Treasury, particularly the Economic Policy Division and Deputy Secretary, on matters relating to the preparation of the 2004 PNG budget. PDP provided advice in relation to the budget preparation work undertaken to date and its impact and effectiveness, and recommended the focus of possible future assistance to the PNG Treasury.

Embedded within the Budget Management Bureaus, PDP’s team provided technical assistance in order to reform the budget preparation process and ensure consistency with the organisational performance indicators framework (OPIF).

PDP’s experts focused on enhancing the proposals assessment process, both in format and content, to enable the Development Budget Coordination Committee (DBCC), Cabinet and the President to make allocative choices between individual proposals as well as between the priority sectors, within the strategic setting of the budget call. In addition, consistent with the strategic thrust agreed with the government and other donors, a public expenditure and institutional review was undertaken to document advances in public expenditure management, particularly as they related to the 2007 budget preparation, highlighting areas for short and medium term improvements. Support was also provided to enable the Department of Budget Management (DBM) to deliver on the above objectives to document achievements and challenges, including to identify areas for additional capacity and administrative improvements.

PDP provided extensive assistance to maintain the reform momentum of the public expenditure management (PEM) reforms and help deepen the quality of key planning and PEM processes and systems were developed under previous reform agendas. Assistance was provided across four inter-related activities of planning and PEM reforms: 

• enhancement of capital works programming by NEDA
• consolidation and deepening quality of MTEF and budget policy framework
• advocacy and implementation of results-based budgeting (OPIF) 
• moving towards output-based budgeting in reforming organisational and staff management.

A combination of activities were pursued such as functional analysis; manpower skills assessment; implementation mentoring; capacity building by training and learning-by-doing; guidance in preparation of technical processes and systems; and advisory development of policy framework and fiscal management.

PDP provided technical assistance to the Department for Budget Management (DBM) and National Economic and Development Authority (NEDA) to improve harmonisation and coordination of their roles in the plan-budget management system. A detailed audit of DBM and NEDA operating systems and procedures was undertaken and recommendations provided for possible improvements or enhancements. Further, the team assisted in drafting a framework to address procedural issues, to develop operational manuals, to enhance operating systems and to strengthen institutional and staff capacity to effectively perform their functions. The PDP team also provide advisory assistance and institutional strengthening support in conjunction with the implementation of the DBM and NEDA Rationalisation Plans.

PDP examined the existing management systems and tools of the Department for Budget Management (DBM) and National Economic and Development Authority (NEDA), with the objective of taking the best of these systems and building them rationally linked systems that promote performance-based planning, programming and budget management. This included an assessment of all existing systems and documenting the strengths and weaknesses of all existing systems and tools, with the objective of identifying areas of inadequacies, duplication and inefficiencies. An assessment of the Organisational Performance Indicators Framework (OPIF) was carried out to identify immediate/short-term measures to improve its application in the 2007 budget preparation process. Recommended actions and an implementation plan were formulated by the team. Further, the team was tasked with the implementation of the recommended improvements to the performance-based planning and budget management systems.

PDP provided the services of a Data Capture Adviser as part of the Land Equity International team undertaking Phase 2 of LAMP. The adviser developed a data capture strategy for the encoding of records into the land administration system of the One-Stop Shop (OSS) as well as an implementation plan for the mass/intensive capture of land records from DENR and the Land Registration Authority into the OSS information system. Furthermore, he developed a reporting strategy to record completeness, currency and correctness of land based records as encoded into the OSS land administration database. The adviser provided additional advice on database compatibility, and encoding, management and maintenance of records, as required.

PDP provided consulting services as part of the Land Equity International team undertaking the first step in the implementation of the proposed long term (15 to 20 years) Land Administration and Management Program (Program) of the Government of the Philippines. Specifically, PDP developed the framework for policy studies in:

• institutional arrangements
• land laws and regulations
• fees and finance
• land valuation.

Significant assistance was provided in the conduct of the studies, with responsibility for the compilation and production of the study reports. An integrated report was compiled, including an assessment of the impact that the agreed recommendations would have on each government and non-government stakeholder groups.

PDP provided continued support as part of the LAMP II Inception Phase, prior to the full-scale launch of the 5-year project. A Land Administration and Management Policy Adviser worked with counterparts from the GOP agencies to produce an outline 3-year work plan and detailed 18 month work plan for the policy component of LAMP 2, including detailed TORs for each planned TA input. The consultant also prepared a workshop and training inputs plan for the policy component. Other responsibilities included the provision of advice and recommendations on the Land Administration Authority (LAA) Bill and Transition Plan and the LAM policy development process.

PDP provided specialist services for the LAMP Transition Project which entailed a scoping study for the preparation of a comprehensive long-term development plan. The objective of this scoping study was to both establish a group of stakeholders (both internal and external) who were informed and committed to partnering LAMP in the process of developing and promoting the long term plan, and to establish the terms of reference for preparation of the long-term development plan.

PDP’s specialist was responsible for designing and obtaining GOP agreement on the outline structure of the final report of the scoping study undertaken by Land Equity International. This involved preparing the overall framework (vision and goal components), approach, work plan and staffing plan, and presentation of an indicative budget for the development plan. Terms of reference were also prepared for risk management, M&E, institutional, management and land management topics.

PDP is providing long-term technical assistance to support the Philippine Government’s fiscal consolidation and poverty reduction agendas by improving resource mobilisation, expenditure management and public service delivery in local government units (LGUs). The TA is supporting LGUs in developing sound and transparent fiscal frameworks that will serve as a foundation for strengthened budgeting and access to credit markets.

PDP is providing assistance across three key aspects of LGU fiscal management: 

• supporting a clearer and more effective legal framework for decentralisation
• increasing transparency and effectiveness in LGU expenditure management and budget processes
• strengthening resource mobilisation in LGUs.

PDP assisted the National Economic and Development Agency (NEDA) to improve the monitoring and evaluation of the medium term public investment program (MTPIP) and support the emerging MTEF initiative through the development of methodologies and mechanisms to carry out performance assessments. In particular, PDP helped strengthen NEDA’s capability in strategic planning, investment programming, budgeting and monitoring and evaluation.

An effective public expenditure management system was set up for better allocation and prioritisation of public resources, particularly on the MTPIP. Efficient and effective governance was promoted through re-engineering, streamlining and right-sizing of bureaucracy and rationalising public sector compensation. PDP carried out continuous development of the capacities, core competencies and skills of civil servants, LGUs and civil society organisations to handle new demands in a changed environment, and also expanded the use of information technology to enhance the productivity, efficiency and effectiveness of government operations.

PDP was engaged to build the capacity of the Department of Budget and Management (DBM) and other oversight and line agencies in performance measurement within a public expenditure management framework. A review concentrated on developments over the past two years and included analysis of pertinent documents on performance measurement produced in the GOP since July 1999, as well as research on actual field practice and the application of concepts currently being promoted by DBM. Capacity building was achieved through the provision of basic training for DBM and other oversight and line agency personnel, followed by more advanced training for some members of the DBM Core Group and personnel chosen from among the basic trainees. Trainees were at the level of Assistant Director or Division Chief so they could echo the training to other staff on return to their offices.

PDP provided capacity building to the Centre for Policy and Executive Development to upgrade staff skills in the design, management, implementation and evaluation of public enterprise policy analysis and advocacy. Areas for capacity building were policy research and analysis and the design of a performance evaluation framework and system. Economics and technical staff were trained, coached and assisted in the course of the production of technical reports and policy design work. An important feature was the introduction of international best practices and information technology into the work of the Centre.

Support is being provided by PDP’s budget expert in embedding the forward estimates (FEs) process, which was introduced in the 2007 Budget, and in guiding key line ministries to develop their spending plans and proposals based on the FEs. This includes responsibility for:

• assessing the 2007 budget experience to identify strengths and weaknesses in the development and use of the FEs and in the appraisal of new program proposals
• assisting DBM in the update of FEs and formulation of FEs for the additional forward year (including preparation of guidelines, coaching and improving understanding of methodology)
• providing DBM with a better understanding of how the FEs can assist in formulating Budget policy and strategy
• assisting DBM to review and refine existing FEs in the context of the OPIF
• recommending early integration of the FEs into the Budget process and the use of a common database.

PDP undertook a diagnostics review of the National Food Authority’s (NFA’s) operational efficiency and effectiveness and provided reform recommendations. Key objectives of the review were to: 

• identify efficiency and cost centres in all aspects of NFA’s operations and assess NFA’s performance in terms of operational efficiency 
• identify policy, program-specific and/or corporate practices that enhance or hinder NFA’s operational effectiveness 
• identify and recommend short (1-2 years) to medium-term (3-5 years) efficiency and effectiveness action measures to enhance NFA’s operational efficiency and effectiveness.

Following the universe of recommendations in the diagnostics phase, PDP formulated a core list of efficiency and effectiveness reforms, including governance rules, in NFA. The team also prepared an action agenda for enhancing NFA’s operational efficiency and effectiveness.

PDP’s trade expert undertook a Special Evaluation Study (SES) of the Central Asian Republics (CARs) Economic Cooperation (CAREC) program. This entailed: 

• assessment of the effectiveness of ADB’s regional strategy in the CARs over the period 1996-2005, giving consideration to whether there may have been more relevant alternatives 
• review of how the past lessons have been taken into account in formulating strategies 
• assessment of the operations during the SES period and providing lessons and recommendations for the future to be more responsive to client needs.

PDP provided the services of an International MfDR Specialist to undertake a study to assess whether ADB’s internal enabling environment was consistent with the requirements of Managing for Development Results (MfDR). The scope of work covered: 

• review of relevant documents published by ADB and other sources to gain an insight into ADB’s approach to MfDR 
• development and implementation of an internet based survey to assess whether ADB’s enabling environment is consistent with the critical success factors for implementing MfDR
• conduct of focus group discussions, videoconferences and interviews with ADB staff to assess the status of the critical success factors for implementing MfDR within ADB and to identify strategies for strengthening ADB’s internal enabling environment 
• undertaking discussions with selected development organisations in order to identify lessons learned from their experiences and the actions that ADB could take to enhance its internal environment and better support the implementation of MfDR.

This project supported the Government of the Philippines’ efforts to strengthen the country’s anti-money laundering regime. It was intended to deter money laundering and predicate crimes through support for strengthening the institutional framework for AML.

PDP provided the services of a regulatory expert with responsibility for identifying key areas where changes to the AML legal and regulatory framework would be beneficial as well as politically feasible within the Philippine setting. The expert also provided support to the Anti-Money Laundering Council (AMLC) and other relevant stakeholders to develop legislation/regulation to address issues that hindered effective implementation of the AML regime.

PDP provided the services of an Agricultural Policy Economist to review tariff and non-tariff barriers to expanding output and trade in key sectors of Philippines agriculture. The Economist reviewed constraints to trade and the incentives structure, and undertook structural analysis of factor and input markets. A policy adjustment and action program was prepared to address policy reform.

This assignment formed part of the Bank’s program to finance consulting services, business and information services over four years through seven components: (i) management; (ii) human resources; (iii) tax compliance; (iv) tax enforcement and control; (v) services to taxpayers; (vi) change management and communication; and (vii) project management.

PDP provided specialist services with the aim of increasing revenues by improving the efficiency and effectiveness of the Bureau of Internal Revenue (BIR) and preparing the BIR for further reform. Specifically, PDP’s adviser was responsible for:

• reviewing the existing plans for each of the seven reform components
• supporting staff of the project administration unit to establish systems to plan, monitor and report on project components and financial and administrative coordination
• developing and recommending a project management structure for the implementation of the reform components
• in consultation with BIR managers, developing the detail of activities, risks and sequencing for the reforms
• facilitating a planning workshop at director and staff level to promote and deepen the engagement between reform planning and BIR managers.

PDP undertook a major analytical study of six Pacific island countries public expenditure management (PEM) performance, including detailed assessment of PEM processes, institutions and performance of public financial management. The study focussed on a phased program of improvements, including the Bank’s role in PEM. Outputs encompassed design of a PEM assessment tool, and comprehensive proposals for reform and their integration into wider public sector management reform programs such as the Solomon Islands Government Public Sector Reform Program (SIG PSRP). Contributions were made to the preparation of the SIG PSRP with a focus on reforms to planning and budgeting, accounting and financial management and implementation of the legal and regulatory framework.

PDP Australia has been engaged by the Australian Agency for International Development (AusAID) to provide ongoing governance support services for short-term assignments between 2010 and 2013. The duration of individual assignments vary, from answering individual questions to longer term assignments including ones that may take place overseas, particularly in Papua New Guinea, the Pacific and Asia.

Under this Period Offer, PDP will be required to provide advice, support, and capacity building services including:

a) ensuring that advice on the AusAID governance initiatives and activities is based on international good practice, Australian and regional lessons learned, and insights from other regions and donors;

b) providing in depth quality advice on governance issues to AusAID management and to regional/country program managers on policy development, program strategy development and review, activity selection, design, appraisal and evaluation;

c) undertaking field missions in relation to AusAID development programs;

d) providing short term ad hoc advice to country and regional programs and program enabling areas, including commenting on documents and participating in meetings;

e) assisting AusAID in-house advisers to distil and synthesise lessons learned on governance issues in the field, to improve the overall quality and impact of Australian aid activities; and

f) participating in, and contributing to, training exercises based around a governance sub-theme, convened by AusAID program or policy areas.

PDP provided services as part of this pilot TA, which was intended to legitimise and mainstream civil society participation in development processes and strengthen relations between Civil Society Organisations (CSOs), Pacific developing member country (PDMC) governments, the private sector and external funding agencies by direct engagement of civil society in the development cycle of ADB assistance. PDP’s Development Economist provided assistance to enhance the competence of Pacific CSO staff with respect to the region’s broad development policy agendas, thus making the CSOs better able to understand and advocate development concerns on behalf of marginalised peoples. The consultant also trained CSO staff in participatory process planning, and engaged CSO staff with other members of civil society in the participatory formulation of ADB country strategies and programs, and project design, implementation and monitoring and evaluation.

This project aims to promote good governance through improved transparency, accountability, and efficiency in managing and using public resources in the Pacific. PDP is providing support in preparing and maintaining a rolling subregional audit program, liaising with the auditor-generals of Kiribati, Nauru and Tuvalu to implement the program, and preparing a detailed resource schedule outlining audit timing and sequencing.

The PDP team worked to conduct: (i) an in-depth overview of the logistics services industry in the ASEAN region; and (ii) a needs assessment, gap analysis and strategy to implement the roadmap.

PDP is providing the services of a Trade Economist and Evaluation Expert to assist the TAG on a task specific basis. Responsibilities of the consultant include:

• participation in project or program reviews and provision of advice to both counterpart governments and AusAID in the design and implementation of the trade and development activities
• advising on any policy, structural, financial or other issues for trade and development, which may include advice on broader social, political and economic conditions, policies and/or institutions
• provision of specialist technical advice in relation to policy and strategy development, in the context of specific AusAID activities in trade and development
• monitoring and review of the trade and development activities and assisting counterpart governments and AusAID to undertake monitoring and review tasks as required
• undertaking technical assessments and/or appraisal of project or program designs, extensions or major modifications, the quality of milestones/outputs achieved by Australian Managing Contractors (AMCs) and technical aspects of reports prepared by AMCs
• providing advice in relation to other aspects of program design, implementation or monitoring
• participating in meetings and briefings in Australia and in the Asia region, as required.

PDP was contracted to prepare the Project Design Document (PDD) for Phase 2 of the Improving Policy Development and Coordination of Reform Program. This included responsibility for preparing the situational analysis, scope of services, Logframe, components, TORs, risk management framework, costings, M&E framework and contracting strategy for the program.

PDP undertook an initial institutional and situation analysis for Samoa’s Ministry of Revenue, to assess the requirements for proceeding with the design of an Institutional Strengthening Project (ISP) for the Inland Revenue Department (IRD).

PDP was involved in the diagnosis of institutional capacities and provided analysis for further scoping and design work for the ISP. Furthermore, PDP presented a range of institutional strengthening options for the Ministry, identifying critical areas in which to concentrate the ISP, as well as undertaking specific strengthening activities to assist the short-term priorities of the IRD.

The objectives of this project were to reorient corporate planning activity in departments towards budget-based planning and strengthen management systems, increasing the attention given by these systems to resource allocation and management. The PDP team took forward an integrated departmental corporate planning, approval, implementation and monitoring process, entailing a budget-based, standardised approach. Assistance was provided to support national counterparts in building the capacity of departments to manage and implement the integrated process.

PDP’s team focused on corporate planning and integration with a medium term budget framework, including formal Cabinet approval and annual reporting of performance against the plans, and the introduction of financial, organisational and other management arrangements to facilitate effective implementation of plans. Assistance was provided to the Secretary to Cabinet to develop a policy coordination role for the Cabinet Office and assisted in the preparation of a Cabinet Submission seeking approval for the introduction of an integrated planning, approval, implementation and monitoring system.

Key tasks included an assessment of which departments would benefit from external assistance in preparation of corporate (or departmental) plans and implementation of the associated financial and other management arrangements. A survey was undertaken of the state of preparedness and availability of external assistance in each department to comply with the proposed integrated planning, approval and monitoring system and recommendations made on the provision of assistance to departments in need. The Adviser also assisted in the development and refinement of the proposed integrated planning, approval and monitoring system, and liaised with the Departments of Finance and Treasury, and National Reform and Planning and the National Planning, Monitoring and Evaluation Unit to ensure that it accommodated their reporting requirements and was compatible with and complimentary to the budget development system and the emerging Medium Term Budget Framework.

As a key member of the SWAp support team, PDP provided the services of a Health Sector Planning and Budgeting Adviser. The consultant focused on progress in preparing a medium term expenditure framework (MTEF) and identified the key issues in, and defined the steps for, improving planning and budgeting in the health sector.

PDP provided budget planning expertise as part of a SWAp support team that provided guidance and assistance to the government’s in preparing the Health Sector Support Program (HSSP). Planning and budgeting improvements were one of the key reform areas under the HSSP, building on the significant work undertaken to date with the aim of facilitating the linkages between the MOH operational plans, the annual sectoral expenditure plan, and the MOH budget.

As part of the SWAp, PDP’s adviser was responsible for: 

• reviewing the draft MTEF and incorporating where appropriate the revised SWAp program budgets 
• assisting in operational planning for 2008, including further training sessions 
• participating in the next SWAp joint mission to discuss MTEF, budget and planning issues 
• providing changes to these areas within the draft as agreed by the joint mission team 
• incorporating any final comments into the draft and from this producing the Final Report.

PDP undertook a desk review of the Solomon Islands Government ICT Capacity Development Project Design and prepared an appraisal note. The appraiser reviewed several issues including: appropriateness of objectives; reducing poverty reduction (by increasing the effectiveness of Machinery of Government); sustainable project outcomes (threatened by funding and longer term reliance on external support); capacity of local civil service or local external resources to support the ICT environment through adequately planned and successful capacity building programs; consistency with AusAID policies; beneficiary needs; and the need for more clearly defined objectives to allow relevant measurability of progress.

Other issues examined in the appraisal provided key indicators to design methodology and appropriateness, such as: partner country participation; adequacy of the design process; standards employed in the final design as well as its integrity; capacity building and use of the technology; and risk assessment issues (theft of intellectual and hard property).

The appraisal note also raised areas to be addressed in the design document and ultimate ICT Project review including standards, strength of partner government support, client management, capacity building (including sustainability at government and grassroots levels, and sustainability of institutional capacity), and highlighted the need for further attention to budgetary concerns.

PDP provided technical assistance to the Department of National Reform and Planning (DNRP) to refine and make operational the National Economic Recovery, Reform and Development Plan 2003-2006 (NERRDP) through the development and implementation of an action plan. This involved providing the basis for developing an action plan for reform, recovery and development, linked with multi-year budget framework, which provided for effective integration of budgeting and planning.

The fiscal context for NERRDP implementation in consultation with the Ministry of Finance, including issues of integrating the development and recurrent budgets more broadly, and integration of the development budget into the Action Plan was assessed. This led to the preparation of an initial draft Action Plan that could be used by DNRP as a basis for further work in liaison with SIG and donors, highlighting key actions, commitments, timeframes, indicators and resourcing requirements. Next steps were identified for further development and implementation of an Action Plan.

Following a severe financial crisis in the country, the World Bank assistance focused on the accounting and budgetary systems, which were failing to provide adequate mechanisms for budgetary control and financial management. By working with counterparts in the Ministry of Finance, an effective system was developed to keep track of arrears, ensure speedy debt service payments and thereby help normalize relations with external and domestic creditors.

PDP's expert was attached to the Ministry of Finance in Honiara who worked closely with two senior government officials designated by the Permanent Secretary, Ministry of Finance, with responsibility for setting up an effective accounting system to monitor arrears. Also, critically examined the 1998 Budget with a view to identifying possible savings to help relieve financial pressure.

PDP provided assistance with accounting and budgetary systems which were failing to provide adequate mechanisms for budgetary control and financial management. The consultant worked closely with counterparts in the Ministry of Finance to set up an effective accounting system to monitor arrears, ensure speedy debt service payments and thereby help normalise relations with external and domestic creditors. The 1998 Budget was critically examined with a view to identifying possible savings to help relieve financial pressure.

PDP provided a team of advisers to prepare a framework and design for enhanced public financial management, and to commence implementation by building capacity and improving existing systems currently under renovation. The assignment included a diagnosis of existing systems and management controls, with a particular emphasis on the quality and integrity of existing processes relating to accounting and financial management in the 2001 and 2002 budget periods. Subsequent to these measures, reform of PFM components covering overall process control and integration took place. A product of this was improved strategic priority setting and allocative efficiency, including the preparation of an effective medium term expenditure framework and proper multi-year budgeting framework and forward estimates system.

A three level capacity building and skills transfer strategy, action plan and related tools were developed to improve performance and effectiveness at institutional and personal levels. A key focus was increasing effectiveness of the PIP and budget integration. The project provided support to the 2000 Peace Budget and assisted in maintaining financial management throughout the period of ethnic tension.

PDP provided technical assistance to the Solomon Islands Government in the reform of the public sector with a focus on reducing its call on the government’s budget. PDP worked with the Public Service Commissioner, the Ministries of Finance and Economic Reform and other relevant officials to provide technical advice on effective and sustainable reform to:

• assist with the responsible setting of priorities for the Solomon Islands Public Sector Reform Program
• clearly define the responsibility within the Solomon Islands Government
• establish an appropriate course of action.

Road map and action plan recommendations were made within a framework of short, medium and longer-term planning and strategic priorities were justified.

Work undertaken on the public sector reform aided the foundations for a broader strategic framework for building systems and skills to strengthen the delivery capacity of the public sector.

PDP staff prepared an appraisal of the AusAID Solomon Islands Public Sector Reform (SIPSR) Project Design Document. The appraisal report addressed each element of the program design document and provided constructive suggestions for improvement based on the current situation in the Solomon Islands. The appraisal considered the feasibility of the program and advised of suitable implementation measures in order for the program design to meet the requirements for immediate implementation.

PDP was specifically requested by the Cabinet Secretary to assist in the delivery a series of critical workshops of Permanent Secretaries with a focus on machinery of government reform. The consultant focused on:

• performance improvement
• current policies and plans
• information flow between ministries and whether technology could assist the process and dialogue between ministries
• benefits and drawbacks of a Permanent Secretaries Forum and how this could help Permanent Secretaries function more effectively
• managing ministerial relationships and how Permanent Secretaries could assist Cabinet to make sound and affordable decisions
• resource limitations impacting on Permanent Secretaries’ role as well as the implications of people, infrastructure and physical location for government plans and decisions.

 
Guidance was given to consider the current rules and laws governing the public sector and their impact, as well as the development and maintenance of public sector ethics and morale.

The Solomon Islands Government (SIG) Information and Communication Technology Capacity Development Project (ICTCDP) was established to enable the development of SIG capacity to manage and maintain whole-of-government information and communication equipment, databases and infrastructure. The ICTCDP Design Document required the Project Coordinating Committee (PCC) to commission three independent technical reviews at specified intervals over the duration of the project, to report constructively on the technical aspects of the project.

The objective of this assignment was to establish the scope and guide the conduct of the three independent technical reviews of the ITCDP. This review was the first of the three reviews.

PDP was responsible for undertaking a comprehensive review of the project activity to:

• determine whether the technical deliverables were appropriate, affordable, sustainable and well managed
• determine if the equipment delivered under the project was selected in accordance with SIG technical compliance, tendering and regulatory directions
• determine if the IT development path taken within SIG was soundly engineered, delivered, fully documented, technically competent and considered all alternatives in its technical approach, and
  
• comment on the overall cultural climate of IT within SIG.

Specific tasks under the first review included:

• evaluating the ICTCDP current work plan technical deliverables in terms of their technical status
• assessing the appropriateness of data security protection for critical systems and the recommendations made to the SIG in relation to data security protection
• assessing the technical management capacity of the ICT Support Unit, and
  
• evaluating the WAN feasibility study report recommendations and their possible impact directly and indirectly on future ICTCDP deliverables and timelines.

PDP provided the services of an ICT specialist to establish the scope for and guide the conduct of three independent technical reviews of the Solomon Islands Government (SIG) Information and Communication Technology Capacity Development Project (ICTCDP). PDP’s consultant also undertook the first review which involved:

• evaluating the ICTCDP work plan technical deliverables in terms of their technical status
• assessing the appropriateness of data security protection for critical systems and the recommendations made to the SIG in relation to data security protection
• assessing the technical management capacity of the ICT Support Unit
• evaluating the WAN feasibility study report recommendations and their possible impact directly and indirectly on future ICTCDP deliverables and timelines.

PDP provided assistance to help develop the Terms of Reference for advisers to be mobilised as part of the budget stabilisation team, contributed to an assessment of the current structure and capacity of the Ministry of Finance and other key agencies in Solomon Islands and gathered information and analysis. The objective of the mission was to further the engagement with key counterparts in SIG on implementation of the budget stabilisation process and to verify, in consultation with key counterparts, the scope of the budget stabilisation process. The consultant provided comment to the mission Team Leader on financial and economic issues specific to the Solomon Islands including:

• the current fiscal situation
• the debt management system
• CBSI processing of SIG payments
• integration of finance and planning functions
• details of over-spending by accounts code
• internal audit reports produced in previous years.

PDP provided accounting advisory services to support the Accountant General and senior line staff in revenue and fund management functions, including assistance to the Accountant General for the preparation of the outstanding 2000-2002 Annual Accounts and preparation of the 2003 Annual Accounts. Advice and support was provided for monthly reporting procedures, fraud investigation, assessment of fund usage and reporting on fund misuse, management of special fund accounts and recovery procedures, and revenue procedures. Capacity building programs for national staff on fund account management, banking and account reconciliation, revenue flow reporting, revenue controls to ensure there was prompt accountability and development of routines for dishonoured cheque control and recovery were completed.

PDP is providing technical assistance to help establish the functions and machinery of government as a platform to improve the accountability and performance focus of government. The focus is on rebuilding of machinery of government in line with current international practice, building on the work done to date with the Cabinet Office, the Public Service Department and with Permanent Secretaries on departmental corporate planning. The emphasis is on building the capacity of SI counterpart staff and in particular the Permanent Secretaries as the core reform agents in the public sector. Recognition is given that effective machinery of government will involve not just central agencies but line agencies and provincial governments.

PDP is undertaking feasibility, design and advisory work, addressing the structure, timing and scale of reform in four key operational areas critical to the effective machinery of government:

• establishment structures, control and review, and public service recruitment
• Cabinet Office
• public service capacity building
• role of provincial governments in service delivery.

PDP provided the services of a Policy Economist to advise on the impacts of policy changes on input-output prices and demand in the agro-industrial and related industries as part of an ADB appraisal mission.

PDP undertook a detailed examination of 19 of the country’s major public manufacturing enterprises (PMEs). The consultants prepared management accounts for each corporation using IMF standard accounting conventions and subjected the accounts to extensive simulations under a range of management/corporate strategies and restructuring operations. Detailed physical and financial restructuring operations were identified and simulated, and reform measures including privatisation, equity injections, management reorganisation and adjustments to external and internal policy mix were introduced.

PDP undertook a major analytical study aimed at rationalising price controls at import, ex-farm, wholesale and retail levels in order to provide an improved set of incentives at the producer level. The study provided quantitative estimates of the ways in which higher produced prices would induce an increased supply response, which would in turn result in lower consumer prices. Effects on secondary markets and commodity markets were also analysed in detail.

PDP Australia was engaged by the Executive Office of the President of the Republic of Tajikistan to conduct vertical functional reviews in the following seven ministries:

· Ministry of Finance
· Ministry of Economic Development and Trade
· Ministry of Education
· Ministry of Health
· Ministry of Transport and Communication
· Ministry of Energy and Industry
· Ministry of Agriculture

The seven vertical functional reviews, under the World Bank-funded Public Sector Reform Project, began on 26 November 2009 and involved seven international consultants and 14 national consultants. The vertical functional reviews examined the relationship between each ministry’s central apparatus and selected sector and regional agencies and state authorities, services, institutes, state enterprises and establishments financed from the state budget. The reviews defined cross-cutting issues, hierarchical institutional structures, the role of the center in coordinating and managing policy and service delivery, accountability provisions and appropriate types of service providers.

Throughout the 12-month assignment, the consultants advised the Government on how the seven ministries should prioritize and rationalize their operational and policy priorities. The seven vertical functional reviews identified the most efficient and effective ministry structures. They strategically determined increases or decreases to the number of ministry staff, while avoiding across the board staff cuts that arbitrarily rather than strategically increase or reduce the size of a ministry or government organization.

As part of the assignment, PDP also evaluated the general current state of job descriptions in the seven ministries and prepared job descriptions for new posts resulting from the seven vertical functional review recommendations.

PDP’s contract was extended in late 2010 to conduct vertical reviews of the Ministry of Melioration and the Agency for Land Organization, Geodesic and Cartography (and the structures within their jurisdictions), and to present detailed recommendations to the Government of Tajikistan concerning improvement of their institutional organization.

PDP provided technical assistance aimed at improving the development impact and overall aid effectiveness in Tajikistan through strengthening capacity of the Government in better aid coordination, harmonisation, and strengthening of portfolio management.

PDP was accountable for strengthening the responsibilities and authorities of the Aid Coordination Unit (ACU), as the main agency for aid coordination, to improve coordination of activities of international organisations, interdepartmental cooperation, mechanism of implementation of PIP and monitoring of the projects, and implementation of joint actions of Government and donors. Tasks in this respect included the drafting of relevant regulatory legal acts, streamlining and strengthening the regulation of the ACU and other ministries in terms of lines of authority and reporting arrangements, and promoting data-sharing mechanisms between all stakeholders of the process of providing and using external aid. The consultant team worked on developing database and management information systems, including the development of computer programs and tools to compile and analyse an aid database and the design of standardised reporting mechanisms for quarterly, semi-annual or annual updates on project and program implementation progress, impacts and achievements. The team also enhanced ACU’s website and demonstrated how its content could be leveraged to meet the needs of different audiences. Further assistance was focused on the harmonisation of donor programs with national strategy and policies, devising simplified systems and procedures applicable to both the Government and donors in various program/project activities.

The goal of the TA was to contribute to poverty reduction and private sector development through: (i) improved efficiency and governance of the Tax Administration; and (ii) enhanced revenue collection for poverty reduction and sustainable economic growth. The purpose of the TA was to prepare the Tax Administration Modernisation and Infrastructure Development Project, which aimed to reinforce the ongoing tax, legal and institutional reforms, and demonstrate the benefits of these reforms efforts.

The outputs of the TA included: detailed assessments and design for the proposed Tax Administration Modernisation and Infrastructure Development Project and the accompanying TA for capacity building and institutional strengthening; provision of equipment for a training classroom to support the training of trainers program for the dissemination of the revised Tax Code, implementation of functional reorganisation, and improvement of ICT literacy; and organisation of external training to gain knowledge on best practices and lessons learned from tax administration modernisation and seek comments and suggestions on the design and planned investment for the Project.

The PDP team was responsible for the following activities.
· Development of a detailed plan to reengineer the key business processes
· Development of an ICT plan
· Development of a physical infrastructure development plan, and
· Development of a training and change management program.

PDP also organised and led a study tour to the Swedish Tax Authority. The goal of the study tour was to experience the benefits of implementing the changes and initiatives proposed in the outline for the next stage of the ADB project.

PDP provided the services of a Fisheries Specialist as part of a FAO Investment Centre mission to prepare a marine fisheries investment project. The Fisheries Specialist undertook a review of the constraints and potential for fish production in the project area, analysis of potential investments in fish production, boat building, fish processing and export marketing, and a study of the capacity of the People’s Bank of Zanzibar to deliver loans to qualified investors.

PDP provided the services of a Senior Agricultural Economist to work with the World Bank team in overseeing the Agriculture Rehabilitation Program in Timor-Leste. The role required guiding the Ministry of Agriculture, Forest and Fisheries in the preparation of a “road map” for the implementation of the National Development Plan, priority action plans for FY03-04, assisting in the drafting of the consolidated Agriculture Budget for FY03-04, and initiating the economic and financial analysis for the Third Agriculture Rehabilitation Project.

PDP assisted the AETCBF review and strategic planning mission. The mission considered capacity approaches and programs of assistance provided by donors (including, but not limited to United Nations Mission of Support in East Timor [UNMISET], United Nations Development Program [UNDP] and Ireland Aid), as well as capacity building systems and processes used in the Government of East Timor (GoET) agencies such as the National Directorate of Planning and External Assistance Coordination (NDPEAC), Capacity Development and Coordination Unit, the National Institute for Public Administration and the Directorate of Public Services. The mission also suggested options for future AusAID involvement in public sector capacity building in Timor Leste to build on achievements to date, including a realistic program of transition between the Facility and any successor program.

PDP’s Team Leader was responsible for preparing a Strategic Framework to direct AusAID’s future program of activities in support of capacity building and institutional strengthening in Timor Leste. The Strategic Framework was to provide the overarching framework for a successor program to the Facility, to ensure continued enhancement of AusAID’s program of development assistance. The performance of the Facility was reviewed to identify opportunities for improved operational effectiveness, as well as opportunities for the existing Facility to move forward towards implementation of the Strategic Framework to improve its strategic effectiveness.

PDP undertook a review of Australia’s assistance to Timor-Leste to date, with the aim of identifying progress, areas and activities for future assistance and lessons learnt during the current period of assistance for incorporation into a future design. The assignment involved the design of a longer term bilateral project, targeting the Central Fiscal Authority, which was closely aligned with Australia’s interim country strategy for Timor Leste and which focused on building and integrating current support within an overall project management framework. PDP also identified necessary transition or bridging strategies between the conclusion of assistance to the CFA under current arrangements and the commencement of support under the future bilateral project.

PDP provided assistance to the Ministry of Education, Culture, Youth and Sports (MECYS) to formulate a basic education policy strategy to address the national literacy crisis through a new long term sector expenditure program. Major components of the project were the development of a long term program to evaluate the cost of introducing the Portuguese language as the new national language, and the introduction of policy to support a new set of local community and governance institutions. A major dimension of the national basic education strategy was the focus on identifying sources of revenue for the next five to ten years from international donors and within the Government of Timor Leste’s own revenue base. A further objective of the strategy was to design and introduce a monitoring and evaluation program to measure outputs and outcomes.

PDP assisted the Policy, Planning and Program Services Division of the Ministry of Agriculture, Forestry and Fisheries (MAFF) to complete a public expenditure review and internalise it as a key policy and strategy document for the Ministry.

In the health sector the expenditure review addressed:

• the relationship between current and proposed investments in health (largely donor financed) and the resulting recurrent costs
• the magnitude of pressures for increased expenditures on the recurrent budget from other (policy related) sources.

Advice was provided to the MOH and Bank on the adjustments which should be made to the draft Sector Investment Program, given constraints on the CFET budget, and paying particular attention to the human development requirements for the sector, technical assistance requirements and investment in infrastructure consonant with the strategic directions in the Health Policy Framework.

The objective of the reviews was to assist ministries to increase the poverty reduction impact of expenditure programs by improving service delivery and sector spending accountability. In addition, the results of the PER Analyses assisted in the formulation of the FY2004 Medium Term Fiscal Framework, budget and sectoral programs in key areas and provided parliament, civil society, external partners, the media and public with public expenditure policy information and management issues.

PDP assisted in building the capacity of the Planning Commission to implement, monitor and evaluate the National Development Plan. It involved developing Timor Leste’s Draft National Development Plan by the time of independence, including enhancing the capacity of national counterparts through active mentoring.

The team helped develop the macroeconomic budget and fiscal framework for the National Development Plan with particular reference to: medium term fiscal issues; monetary, banking and credit issues and the exchange system; trade and investment issues; formal/informal sector and small and medium enterprises; sectoral policies; and labour market issues, including employment, wages, training and labour market productivity. Recommendations on medium term fiscal issues were integrated into the draft plan and assistance provided in reconciling the competing demands of sector strategies for limited resources. A particular focus was on identifying ways in which macroeconomic policies could be used to realise aspirations expressed in the countrywide consultation. Recommendations from the National Poverty Assessment were also integrated into the draft plan.

A PDP Financial Management Specialist provided specialist advice in regard to three modal transport sectors. The specialist developed a full financial management and accounting system at the organisation, project, capital expenditure and recurrent expenditure level and produced a manual on financial management and financial decision systems. Tasks included establishing and initiating work for operationalising institutions and establishing financial and regulatory frameworks for the management of the roads, ports, maritime, aviation and airport sub-sectors. A review was also conducted of the long term development requirements to enable these sub-sectors to contribute to poverty reduction and economic growth.

PDP provided a team to edit and produce a Feasibility Study Report for AusAID’s proposed Financial and Economic Management Program (FEMP). Inputs were collected from each member of the FEMP Feasibility Study Team and these were collated into a single, comprehensive, cohesive and focused Feasibility Study Report. The report was edited to ensure clear and consistent language and content. The report was also reviewed by PDP’s technical expert to ensure its contents were logical and viable in terms of the feasibility of a FEMP program of assistance, particularly the institutional and public finance aspects.

This project provided an underlying assessment of the development constraints and opportunities for the guidance of the Government as well as for the preparation of ADB’s Strategy and Program Update in 2006. PDP prepared an economic report providing for the current state of all macroeconomic development and policies, performance and directions, and target macroeconomic and fiscal indicators. The team provided recommendations in a clear program with resource implications and best practice policy directions, with the objective of improving macroeconomic management and public services delivery. This included objectives on:

• reduction of poverty and hardship
• private sector development
• optimal public resource allocation
• fiscal policies.

These recommendations were to account for the institutional constraints and opportunities for performance improvement through reform and capacity development to foster effective macroeconomic policy framework and improvement in social welfare.

PDP provided services under this TA which aimed to improve economic and public sector management in Tonga by ensuring that the Government was able to align its policies, strategies, expenditures and work program with Strategic Development Plan Eight (SDP-8), including recommending policies and measures for development partners’ assistance to the Government. PDP’s Team Leader/Macroeconomic/Public Finance Specialist was responsible for overall oversight and coordination of TA implementation, and leading the team in: 

• assisting the Government with preparing a sustainable strategy for implementing SDP-8 
• preparing the second phase of the Economic and Public Sector Reform Program (EPSRP), focusing on the implementation of SDP-8 
• preparing and conducting consultative workshops and seminars with Government agencies, civil society, the private sector, development partners, and other relevant stakeholders.

PDP provided the services of a Budget Management Adviser to help the Government of Tuvalu (GOT) to implement recent recommendations of the Tuvalu Trust Fund Advisory Committee (TTFAC) on budget management issues. The focus was on helping to enable the GOT to enhance its budget preparation process. A key task in this respect was the development of a capacity building program—targeting the respective roles of each of the key budget preparation stakeholders. This encompassed a mixture of action and related training to improve: the process of budget preparation; the accuracy, timeliness and comprehensiveness of information available for the budget preparation process; and methods used to analyse information used in the budget preparation process.

PDP provided technical assistance to help the Ministry of Finance and Economic Planning and Investment (MFEPI) enable the Government of Tuvalu (GoT) to prepare a draft 2006 Budget. This involved:

• estimating the likely 2005 Budget outturn and its implications
• projecting expected expenditure and revenue trends on the basis of existing policies using the multi-year budget framework (MYBF) model, and identifying any significant fiscal risks
• determining appropriate aggregate fiscal targets for 2006
• reviewing the budget circular and suggesting amendments
• assessing departments responses to the budget circular and recommending realistic adjustments
• coordinating the adjustment process
• finalising preparation of the 2006 Budget.

Under ADB’s Capacity Development for Public Financial Management in Tuvalu, PDP’s five-person team will provide support to the Government of Tuvalu over a period of 2 and half years, supporting a public financial management reform process in three key areas: (i) developing and implementing a capacity development program to support the public financial management reform process, (ii) reviewing tariff arrangements for public enterprises, in light of the new taxation reforms and pressures for improved efficiency; and (iii) supporting the program grant with an emphasis on building the capacity of government to implement reforms, including divestiture, to improve SOE performance.

PDP provided assistance in defining the development of the UAE Federal Government debt market in coordination  with current monetary and fiscal policy to develop an appropriate and specific debt management strategy that is consistent with the UAE fiscal and budget framework.  PDP's team prepared the debt management strategy in close coordination with key government stakeholders including the Ministry of Finance and Central Bank.

PDP also provided assistance to the UAE PDMO to create Policy documents and Procedures manuals to be used by the staff of PDMO, including the governance, organizational structure and organizational processes (including and relating to HR, MIS, risk management, front office, back office, legal, investor and credit rating relations).  The content and quality of the Policies and Procedures met the standards of the World Bank Debt Mangement Performance Assessment Tool (DeMPA) and the International Institute of Finance's (IIF) Investor Relations and Data Transparency guidelines.

PDP worked with the Ministry of Finance to prepare performance budget statements (PBS) documents in 33 federal ministries and autonomous agencies. Each agency was required to prepare a budget presentation classifying expenditures according to programs for the 2002/2003 budget. The assignment involved seminars and presentations on performance budgeting to staff of the different agencies (in close collaboration with a PBS team in the Budget Office of the Ministry of Finance and Industry), reviewing draft program budget presentations and performance indicators prepared by each agency, and the preparation of design documents for PBS.

PDP provided consulting services to help improve fiscal discipline and strategic resource allocation by developing performance-focussed budgeting and budget execution systems. The work included an assessment of all processes and systems to propose strategies and action programs as part of the detailed preparation of the budgeting and budget execution component. It specifically targeted:

• in year financial planning
• payment systems reform incorporating treasury single accoung
• improved budget monitoring, accounting and financial reporting including recommended changes to chart of accounts and FMIS
• design of institutional changes to establish a new treasury organisation
• focus on performance based program budget presentation and internalisation in the preparation of sector expenditure plans.

The design ensured effective budget execution and oversight by reforming payment authorisation arrangements, budget monitoring and reporting. Improvements in efficiency of expenditure and financial management were designed to help advance financial planning, centralisation of cash balances and line ministries’ reporting. Increased transparency and accountability by strengthening financial controls and the capacity for internal auditing were included. Improvements were also made in accounting and broadening public access to budgetary information and general-purpose public finance reports.

PDP provided accounting and FMIS support to the Ministry of Finance and Economic Management (MFEM). The assistance aimed to address specific risks that were identified by MFEM in terms of the finalisation of the GoV financial statements for 2005, as well as provide accounting support to the accounts, revenue, payments and payroll sections of the Department of Finance (DoF). PDP also helped the Government to implement the SmartStream projects module and a new budget and reporting package, and upgrade SmartStream to the latest version and develop its reporting capabilities.

PDP provided large scale technical assistance aimed at reform of public expenditure management and strengthening of the MFEM as part of the Comprehensive Reform Program of the Government of Vanuatu. The project incorporated five components: (i) budgeting reform; (ii) budget execution and management; (iii) IT systems; (iv) revenue side reforms; and (v) project management.

PDP provided a complete team of advisers to strengthen the MFEM and assist in the transformation of the PEM processes and systems in Vanuatu. A major on-the-job training and skills transfer program was undertaken in strategic planning, budgeting, budget execution, accounting and financial management and related IT systems. The PDP team worked with MFEM counterparts to provide advice, develop procedures and train ni-Vanuatan staff to enable consolidation and internalisation of budget and fiscal management processes, including design, execution and management of the budget processes and ensuring integration with reformed accounting processes within a new FMIS. The team built capacity in the design of financial statements, cashflow forecasting and significantly improved compliance with statutory accounting reporting requirements by developing contemporary accounting procedures and carrying out service wide training. PDP also provided the services of an IT Specialist, skilled in the development and implementation of FMIS, to enable MFEM to implement a modern IT system, including the establishment of effective institutional arrangements and correct sequencing with the other components. Additional assistance was provided through a Land Valuation Adviser, working within the Department of Lands to consolidate and strengthen the department, including developing and implementing a consolidated Lands Database.

PDP provided a complete team of advisers to strengthen the MFEM and assist in the transformation of public expenditure management processes and systems in Vanuatu.

The purpose of the Budget Preparation and Management Component was to ensure that all government expenditures and revenues were reviewed, prioritised and subsequently controlled by government through a systematic annual budget cycle and routine monitoring. The PDP team provided advice, developed procedures and trained ni-Vanuatan staff to facilitate the consolidation and internalisation of budget and fiscal management processes, incorporating design, execution and management of the budget processes and ensuring integration with reformed accounting processes within the new financial management information systems (FMIS). A key aspect was the design and delivery of training and workshops on budget management, expenditure management and revenue forecasting, as well as the use of the new FMIS and associated applications. Integral to this component was the provision of advice to the Ministry of Health, focusing on developing skills in budget policy analysis, budget formulation and entry, cash flow planning and management, extracting and using financial management information and financial reporting, as well as strategic policy setting and managing for improved agency performance in financial management. Additional assistance was also provided to the Department of Lands to strengthen the department, develop and implement a consolidated Lands Database and implement the 2004 budget initiative on land reform.

Under the Accounting Procedures and Service-wide Training Component, PDP’s work concentrated on strengthening the MFEM and line agency capacities to meet their obligations under the new public finance legislation through improved accounting structures and procedures within MFEM and improved knowledge and understanding within the public sector of public finance principles and the requirements of Vanuatu’s new public finance legislation. This included the development of contemporary accounting procedures and service-wide training to build capacity in the design of financial statements and cash flow forecasting and to significantly improve compliance with statutory accounting reporting requirements. As an element of this component, PDP provided the services of a short term assets valuation adviser to undertake valuations of current and non-current assets of the Government of Vanuatu and to upload data into the FMIS, establishing a government-wide register of assets. An extensive training program focused on acquainting accounting personnel with basic accounting concepts and raising awareness and knowledge in relation to accrual accounting concepts and accrual reporting practices as they apply to the Vanuatu public sector.

PDP’s responsibilities under the Information Technology Improvements Component entailed ensuring that the MFEM’s information technology systems and services supported other project objectives and more efficient processing of the government’s financial transactions. Specifically, PDP provided extensive assistance in the implementation of a modern IT system, including the development, implementation and first year of operation of the new government-wide FMIS (SmartStream) for MFEM. Extensive training provided to acquaint all line ministry users with SmartStream processes, as well as general computer training where needed.

Under the Corporate Development and Project Coordination Component PDP assisted the Director-General of the MFEM with ongoing restructuring of the Ministry, in pursuing good governance objectives in the Ministry through improved management systems, and coordinated the implementation of project activities.

PDP provided two specialists as part of the VGAP design mission to advise on all financial management and economic aspects of the program. The purpose of the mission was to design a program which enabled the Government of Vanuatu (GoV) to extend the reforms of its financial and economic management agencies, to progress overall public sector reform, to extend public sector reforms to line and provincial agencies, to strengthen support for transparency, accountability and reducing corruption, and to address the regulatory and other issues that constrain growth in the productive sectors.

PDP staff undertook an analysis of global and regional changes in the energy market and prepared a policy/strategy paper for medium term investment in Indochina with a particular focus on Viet Nam. The paper included a comprehensive analysis of investment strategy options.

PDP provided assistance to a major regional multinational for the project identification and concept analysis of a $180M import replacement agro-industry project based on gas conversion. Advice was given to the corporate planning team in the Vietnamese energy and agriculture sector strategy, pricing, marketing and project costing. A full financial and economic analysis was also carried out.

PDP assisted the State Planning Committee (SPC) to prepare Viet Nam’s first public investment program (PIP) and ensure its integration with the medium term macro policy and sectoral policy framework. It involved establishing the PIP process linking line ministries, provinces and SPC and the preparation of comprehensive PIP documentation and resource allocation documentation. Work concentrated on establishing criteria for program budgeting and project selection in each sector. The PIP was linked to the budget position and its fiscal implications were analysed. A major capacity building and training program was undertaken to support the reforms.

PDP provided assistance to the State Planning Committee (SPC) to prepare the initial policy and regulatory framework for privatisation, including a review of the SOEs in key sectors and the preparation of strategy papers. A key component was developing a privatisation and enterprise reform program.

PDP O&M policy services aimed at establishing an efficient framework for strengthening and streamlining O&M of the water resource sector and providing a comprehensive water policy framework. PDP completed a financial analysis of cost recovery and financing policy options and provided specialist advice on restructuring of the institutional framework.