Change in leadership

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.

Assessment of potential political risks such as a change in government and identifying mitigation measures could help ensure the continuity of planned project activities, specifically when there is strong support, ownership, and commitment of an agency. In particular, it is important to consider the speed and direction of change in the policy regime. For example, a shift in the government priorities could trigger resource allocation that could potentially affect how a project could deliver its intended development results.

High staff turnover, weak procurement and contract management capacities, and lack of familiarity with ADB procedures, often the cause of implementation delays, need to be addressed jointly by ADB and government counterpart agencies. Because of the changes in the executing agency’s senior-level officials, turnover of the project staff was high. The project also suffered from counterpart agencies' weak procurement and contract management capacity and lack of familiarity with ADB guidelines.

Adequate project related preparatory work, planning and risk assessment are crucial to improving project readiness. These efforts include assessment of the technical and administrative capacity of the executing and implementing agencies. Under the project, any reorganization of the agency, if necessary, needs to be clearly arranged and completed prior to project start-up. This helps the agencies in addressing the implementation issues on time. Likewise, skills training of agencies involved in the implementation enhances the preparation and quality-at-entry of the project.