It is important to thoroughly discuss and plan project implementation arrangements to ensure the use of the most appropriate and effective modalities. This could have mitigated initial delays and improved the efficiency from the outset of this TA that overall was well-articulated in terms of scope and the design and monitoring framework.
Results-based lending (RBL) is well suited if it is embedded in a wider government-owned and led program. It can be an effective modality for achieving both physical outputs and nonphysical goals. It can also make changes in national policies that go beyond the project’s physical scope. The climate risk assessments, procurement processes, and beneficiary selection criteria used in this program were also applied in non-ADB financed provinces. The instructions issued and policies adopted by the government were “national”in nature and impact.
The borrower is not obligated to request disbursement of the full amount related to the fulfillment of any disbursement-linked indicator (DLI). Accordingly, ADB disbursement projections can be overly optimistic. This point should be considered in future revisions of RBL policies.
ADB’s participation in a country-driven program, by bringing knowledge and experience in addition to financing, catalyzes interest and cofinancing from other development agencies. This program was a critical element for enhancing the entire ecosystem of housing financing and mortgage market, helping lay thegroundwork for diversified funding and private sector involvement.
The programmatic approach taken in the TA—including upstream policy reforms, midstream transaction advisory support, and downstream funding support—along with the One ADB collaboration model for energy transition, has been well-recognized and is being replicated in other developing member countries. This type of TA is instrumental in supporting the government during times of significant changes. The analytical studies in support of policy dialogues and reform measures have been critical in firming up ADB’s leading role in the sector and in leveraging reforms through investments.
By advancing sector reforms, a facility TA, which involves multiple subprojects running concurrently within one framework, can address the risk of losing consistency or coherence among the subprojects. By setting a general policy priority and road map for sector development, the TA will be able to effectively bring its subprojects onto a common path/direction.
Programmatic approaches are an appropriate and effective means to address technically challenging development problems that require long gestation periods. In this case, the government piloted and launched a highly effective program to improve the prospects of young and disadvantaged job seekers, and strengthened several existing labor market activation programs as part of a broader education reform agenda. This process covered more than 6 years and the large technical assistance (TA) grants the program attracted were instrumental to its success.
Coordinated use of TA is essential to support policy based lending, as this modality on its own is not well positioned to develop or deploy needed capacity. The TA grants funded by the Government of Canada provided the hands-on support necessary to develop policy and operating systems, which was followed by the program to provide the leverage to support the actual rollout of the JobStart Philippines Program (JSP).
ADB has become more proactive in handling crises and providing support to its developing member countries (DMCs) by delivering emergency assistance. The process has been defined further after the COVID-19 pandemic, allowing DMC governments to access and implement emergency programs smoothly and ADB to provide resources more effectively and efficiently.
Deep diagnostic work, extensive technical assistance (TA), and evidence-based policy dialogue benefit the design and implementation of public sector management reform program. ADB has ensured continuity in policy reform efforts through programmatic policy-based lending (PBL) modality. Through this and other PBL programs, it has been very effective in engaging in high-level dialogue for upstream and mid-term support. PBLs are even more important now at other partners (such as the World Bank) are no longer providing general budget support.