CollaboratorsWB-ADB-GOP

Partners•LGUs•Civil Society•Donors

Local Capacity Mobilization/

Building

7. Policy Reform Evaluation

PEPFMR

2. Preparation

3. Coalition Building

5. Interim Results and Outcomes

1. Identification

4. Appraisal

6. Negotiations

AAA Cycle: The PEPFMR StoryPolicy Notes, SSR, other ESWGovt. program (Procurement Reform, NGAS, PEM Program, Fiscal Performance Indicators)ADB work on PEMASEM TF: Improving Governance

ADB-GOP-WB (Joint Working Groups, consultations)WB-ADB (Harmonizing processes, consultant engagement/TORs, internal process requirements)WB Internal (EASPR-EAPCO partnership, role of sector boards, coordinating peer review)

Enhanced communication (within GOP, GOP exec-constitutional bodies, GOP exec-LGUs, GOP-donors)Continuous process (missions, field visits, consultations, CG meeting, Govt. discussions)

Products (PEPFMR, CFAA, CPAR)Actions (Decision Draft review, GOP discussions, internal clearances, GOP clearance)

Outputs/Interim Outcomes (Procurement law, revenue forecasting, MTEF refinement, NGAS implementation, COA reorganization, improved financial reporting, CSC Strategic Plan, CS modeling, DSDS)Instruments (ASEM x 2, IDF x 3, PHRD, ADB TA)

Action plan (prioritization, sequencing, cost, TA/investment, donor coordination, monitoring)

CAS Triggers, PEPFMR Key Messages (planning, budget execution, financial mgmt, procurement, HR mgmt, decentralization)

1. Identification – The Building Blocks

Policy notes, SSR, other ESW Government program

– Procurement reform (DBM)– New Government Accounting System (COA)– Public Expdr Mgt Program (DBM)– Fiscal Performance Indicators (DOF)

ADB work on public expenditure management ASEM TF: Improving Governance & Reducing

Corruption

2. Preparation

Process: Getting The Collaboration Right ADB-GOP-WB

– Joint Working Groups (Procurement, FM & PEM)– Consultations with LGUs, civil society, donors

WB-ADB– Harmonizing task processes– Coordinating consultant TORs and engagement– Working around internal process requirements

WB Internal– EASPR-EAPCO partnership– Role of Boards (PSGB, FM, Procurement) and OPCS –

integration processes, clearances, quality control– Coordinating peer review process for 3 elements

3. Coalition Building

Enhancing Communication Within GOP executive

– DOF, DBM, BIR

Between GOP executive & constitutional bodies– DBM-CSC, DBM-COA, DBM-Congress

Between GOP executive & LGUs Between GOP & donors

Continuous process Missions and field visits Consultations (January 2002) Consultative Group Meeting (March 2002) Govt discussions (October-November 2002)

4. Appraisal

Products PEPFMR CFAA CPAR

Actions Decision Draft review GOP discussions (October 2002) Internal clearances

– World Bank PS/FM/Proc Boards, ADB

GOP clearance (April 2003)

5. Interim Results & Outcomes

Outputs & Interim Outcomes Procurement Reform Law & Draft IRRs Improvement in revenue forecasting method MTEF refinement NGAS implementation COA reorganization Improved financial reporting CSC Strategic Plan (2002-04) Civil service modeling tool Decentralization and Service Delivery Study

5. Interim Results & OutcomesInstruments for Identified TA Needs ASEM Trust Funds

– Improving Governance/Reducing Corruption– Strengthening Institutions– Pensions

IDF Grants– Enhancement of Revenue Mobilization (BIR)– Strengthening Exp. Mgmt. for Wagebill Control– Strengthening Financial Management Capacity (proposed)– Procurement Reform

PHRD Grant for PSSL ADB Technical Assistance

– ARMM– Capacity Building

6. Negotiation

Refining PEPFMR Implementation Plan Seek to Agree on:

– Prioritization and sequencing– Cost– TA and investment requirements– Donor coordination– Impact and monitoring indicators

Put out agreement in public domain

8. Risk AssessmentCategory Mitigation Measure

Political:

2004 elections - progressive hesitation on policy reforms; more decisions taken by President’s Office

Step up analytics and have agenda and policy proposals ready for new Administration

Build consensus for core agenda to be supported by all donors

Maintain dialogue with GOP at technical level

Identify interlocutors in OP

Identify a wider set of stakeholders and reach out

Fiscal – deficit widens:

Revenue collection does not improve

Expenditure controls weaken

Disseminate core DPR/PEPFMR messages in this area

Fiduciary:

NGAS implementation goes awry

Financial reporting weakened

Intensive partnership with COA

Strengthen financial reporting in key spending entities (DSWD)

IDF Grant for capacity building

Administrative:

Weak interagency coordination

Lack of capacity

Too many initiatives (MTEF, SEER, OPIF, BEATS, CUBES)

Focus on oversight agencies (DOF, DBM, NEDA, COA, BSP, CSC)

Capacity-building in oversight agencies to be part of core agenda

Intensive implementation support and supervision for grants

7. Policy Reform Evaluation

CAS Triggers Increase in revenues as measured by Tax/GNP ratio Decline in government liabilities as measured by NG Deficit/GNP ratio Increase in share of capital outlays and MOOE as compared to personal services

7. Policy Reform Evaluation

PEPFMR Key Messages Improving aggregate fiscal discipline

– BIR transformation– Indexation of sin taxes

Managing off-budget risks– Improved recognition of contingent liabilities– Establishment of centralized risk management unit in DOF– Pension reform – especially SSS

Strengthening SEER and OPIF process

7. Policy Reform EvaluationPEPFMR Key Messages Planning & budgeting for the medium term

– Center-Sector and Center-LGU coordination– Improved revenue forecasting techniques– 3-year department budgets with prioritization

Budget execution– Improved links between budget allotment & cash authorization– Simplified release process & reporting systems

Financial management– Accounting rules (IFAs, contingent liabilities)– Continued development of Integrated Financial Management

System

7. Policy Reform Evaluation

PEPFMR Key Messages Public procurement

– Legal framework – Procurement IRRs, BOT law– Increased agency participation in Government Electronic

Procurement System (GEPS)– Procurement auditing

Human resource management– Executive actions on administrative consolidation– Wage bill and employment control – Competitive and transparent compensation policy– Civil Service Personnel Information System

7. Policy Reform Evaluation

PEPFMR Key MessagesDecentralization

– Strengthen LGU capacity for:• Taxpayer registration and audits• Financial management• Budget management• Procurement