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Lesson
Close coordination with other development partners working in PFM reforms is necessary to create synergies with ADB's support and interventions. Subprogram 1 was designed and developed in close consultation with the IMF and the World Bank to ensure a coordinated approach to PFM reforms. These lessons have confirmed that the reforms require a long-term perspective to achieve the intended objectives and that reforms need to be underpinned by significant efforts in sustained capacity building to ensure capacity constraints do not impact the overall quality of reforms.

Project Number: 52146-001
Project Name: Strengthening Public Finance Management Program (Subprogram 1)
Report Date:
Lesson
Public finance management (PFM) reforms are complex and require a long-term high level political commitment and flexibility to maximize the development impact. The progress made under PFM reforms can also be non-linear in nature, which requires greater effort to revisit reforms and to embed and institutionalize complex reforms as part of the “norm” in core government processes such as policy planning and budgeting.

Project Number: 52146-001
Project Name: Strengthening Public Finance Management Program (Subprogram 1)
Report Date:
Lesson
Given capacity constraints and experiences in legal drafting, legal and regulatory developments require a longer timeframe to be considered in ADB's future programs. The program could have further included a targeted capacity-building needs analysis and an associated TA project to directly address capacity constraints and deepen the capacity needed for full implementation.

Project Number: 52146-001
Project Name: Strengthening Public Finance Management Program (Subprogram 1)
Report Date:
Lesson
Institutional and technical capacities to effectively implement PFM reforms remain weak, and absorptive capacities remain low. This can often be further compounded by frequent changes in leadership and staffing, which can cause further delays. ADB's continued engagement with the Ministry of Finance must be at all levels of the administration (management and operational levels) to strengthen the institutional and organizational capacity and reduce the impact of staff turnover on reform impact.

Project Number: 52146-001
Project Name: Strengthening Public Finance Management Program (Subprogram 1)
Report Date:
Lesson
Successful PFM reforms necessitate active engagement with key stakeholders including the legislature, line ministries, civil society, and the public to ensure buy-in of policy changes and smooth reform efforts.

Project Number: 52146-001
Project Name: Strengthening Public Finance Management Program (Subprogram 1)
Report Date:
Lesson
Policy reform programs with complex and multiple interventions require rigorous identification and assessment of the political economy and capacity risks to ensure overall effectiveness.

Project Number: 48361-001, 48361-002, 48361-003
Project Name: Building Macroeconomic Resilience Program
Report Date:
Lesson
Actions that demonstrate the achievement of program policy matrix milestones should indicate what has been achieved, rather than the process of their accomplishment. For example, Cabinet approval is an inadequate indicator to demonstrate a successful policy reform in Tonga.

Project Number: 48361-001, 48361-002, 48361-003
Project Name: Building Macroeconomic Resilience Program
Report Date:
Lesson
Program design and implementation in least developed (and fragile) countries need to take account of the limited administrative capacity of the government. While ADB designed a program which supported the government in undertaking reforms and sufficient consulting services resources to help bridge capacity gaps, the timeframe for the program was too ambitious and ADB did not provide adequate continuity in the staff providing project supervision. These deficiencies contributed to the underperformance in program outcomes.

Project Number: 46059-001, 46059-002
Project Name: Governance and Capacity Development in Public Sector Management Program - Subprogram 2
Report Date:
Lesson
A GAP is not required for projects classified as having no gender elements; hence, this was not needed in the loan agreement.

Project Number: 41041-013
Project Name: Public Finance Management Reform Project
Report Date:
Lesson
A results-based loan could have been considered where disbursements would have been phased in relation to the progress of project implementation to avoid difficulties in monitoring evolving needs during and after project completion.

Project Number: 41041-013
Project Name: Public Finance Management Reform Project
Report Date:
Lesson
The bid price for the GFMIS application and main servers should have been better estimated. The bid was 43% above the price.

Project Number: 41041-013
Project Name: Public Finance Management Reform Project
Report Date:
Lesson
The DMF was not well designed and had deficiencies in the measurement of performance indicators for the project impact and outcome. Target dates should have been indicated the five outputs of the project involved the implementation of three components. These should have been integrated more closely with the outputs of the DMF.

Project Number: 41041-013
Project Name: Public Finance Management Reform Project
Report Date:
Lesson
The procurement of IT systems—including hardware, software, and related communications equipment— requires the involvement of specialized personnel. However, this is not a full-time job, and on-call consultant support could have been considered for the executing agency.

Project Number: 41041-013
Project Name: Public Finance Management Reform Project
Report Date:
Lesson
A more proper design of the TA component and a firm-based consultancy recommended at appraisal along with a more realistic budget. DOF and SGD should have strengthened their procurement capacity prior to the TA loan and this could have been a condition for the release of the tranche 1 funds given that it was their first large ADB-fund project. Although this was recognized, it was thought that such a risk could have been mitigated through the capacity building provided under the TA loan.

Project Number: 41607-013
Project Name: Mizoram Public Resource Management Program
Report Date:
Lesson
The complexity of the program, as measured by the number and nature of outputs (and sub-outputs) and policy actions as an important factor in the degree of difficulty in implementation (footnote 7). There may have been too many conditions, i.e., policy actions, to be complied with for the releases of tranches 2 and 3 within the context of the anticipated timeframe for the program and in view of the limited capacity within the government.

Project Number: 41607-013
Project Name: Mizoram Public Resource Management Program
Report Date: