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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
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
Basic governance and project management capacity are needed for the success of institutional development projects. This first loan to a state-owned enterprise in Mongolia has demonstrated several lessons. First, having a stable and consistent governance in place within the executing agency is critical prior to pursuing reforms. Second, clarity in the legal status of the implementing agency and the applicable rules and regulations would help mitigate political risks.

Project Number: 49409-001
Project Name: Strengthening Institutional Framework and Management Capacity Project
Report Date:
Lesson
Selection of the most suitable modality to support institutional development requires adequate consideration of the various factors intricately linked to it, including the prevailing political dynamics, incentive structures in public administration, and commitment of the relevant development agencies. In the case of this project, frequent changes in the senior management of the Erdenes Mongol jeopardized project ownership and seriously affected implementation.

Project Number: 49409-001
Project Name: Strengthening Institutional Framework and Management Capacity Project
Report Date:
Lesson
In addition to continuing technical assistance (TA), it is important that professional advisors work closely with the government of Kiribati to try and ensure reform momentum.

Project Number: 47322-001, 47322-002
Project Name: Strengthening Economic Management Reform Program: Subprograms 1 and 2 Completion Report
Report Date:
Lesson
A stand-alone policy-based grant would have been preferable for this project rather than a programmatic approach.

Project Number: 47322-001, 47322-002
Project Name: Strengthening Economic Management Reform Program: Subprograms 1 and 2 Completion Report
Report Date:
Lesson
Expertise in information and communication technology key for public financial management projects. On support from ADB during loan processing and administration, a strong One-ADB team could provide timely advice to the government, the consultants, and the contractors on implementation. Such a team should comprise members with expertise in key subjects. In this project, an ICT expert could help the executing agency’s project preparation and implementation at the early stage.

Project Number: 38356-013
Project Name: Fiscal Management Efficiency Project
Report Date:
Lesson
Project management and supervision key to success. When a project includes components with high level of implementation uncertainties, adequate provision for project management and supervision could help to mitigate the risks. While beyond the control of the project, the frequent turnover of key officials in the PRM agencies and national political changes affected continuity of the project implementation.

Project Number: 38356-013
Project Name: Fiscal Management Efficiency Project
Report Date:
Lesson
Instead of implementing 13 modules sequentially across all government spending agencies, it could be more suitable to do it in a phased manner: implement each module, test and finalize for one agency, and then replicate to others. The demand on staff time and efforts in a modular approach would have been more manageable, and quick successes would have helped sustain morale and commitment.

Project Number: 38356-013
Project Name: Fiscal Management Efficiency Project
Report Date:
Lesson
Due consideration to realistic timeline and risk mitigation. The project was designed to be completed in 4 years but after 10 years, it is still incomplete. The timeline of 4 years at appraisal seems over-optimistic. In particular, the following factors should also be considered in this type of projects: (i) bridging language barriers, (ii) knowledge of local accounting regulations, and (iii) adequacy of locally based technical staff. Assessment of these factors and incorporation of corresponding risk-mitigation measures could help minimize delays in project implementation.

Project Number: 38356-013
Project Name: Fiscal Management Efficiency Project
Report Date:
Lesson
Extra attention needed for project implementation involving large-scale activities for information and communication technology. A distinct feature of the project is the implementation of two large-scale ICT-related components, RAMIS and ITMIS. Compared to hard infrastructure projects, the project involved less well-defined activities for system customization, configuration, re-development and testing, which usually require adequate implementation time to ensure the quality of final products.

Project Number: 38356-013
Project Name: Fiscal Management Efficiency Project
Report Date:
Lesson
Sustained ownership of and commitment to tax administration-related activities. Tax administration modernization typically has one key stakeholder and one key objective of increasing tax revenues, which is a tangible gain. In contrast, PFM modernization has many key players and the benefits of more efficient PFM, in the form of reduced administrative costs, are less tangible. In this project, the RAMIS component demonstrated better performance than the ITMIS component.

Project Number: 38356-013
Project Name: Fiscal Management Efficiency Project
Report Date: