Strengthening Public Resource Management Program

A multiple tranche design or program cluster design is useful, as it brings more balance to the program and helps keep up the government's commitment, even though such a design has high transaction costs for the government and ADB. Such designs also discourage the tendency for the government and ADB to include easier actions in the initial tranche and tougher ones in the later tranches, thereby unbalancing the program and leading to less than successful ratings. The incentive tranche kept ADB and the government engaged and kept the reforms on track.