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 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.

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 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 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 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.