Technical Assistance to the Republic of the Philippines for Harmonization and Managing of Results

(PHI 35166/4686)

Final Report

Department of Finance (DOF) Republic of the Philippines

and Philippine Country Office (PhCO)

Asian Development Bank

June 2008

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Technical Assistance Completion Report1

Technical Assistance to the Republic of the Philippines for

Harmonization and Managing of Results

Table of Contents HAbbreviations .......................................................................................................... Hiv HExecutive Summary................................................................................................ Hix HIntroduction .......................................................................................................... H1 HDescription .......................................................................................................... H2 HExpected Impact, Outcome and Outputs ................................................................ H2 HDelivery of Inputs and Conduct of Activities............................................................ H3 

HStart-up Activities ..................................................................................................... H4 HImplementation ....................................................................................................... H4 HPartnership with other TAs/DPs............................................................................... H7 HFinancial Management............................................................................................. H8 HMonitoring and Reporting on Results..................................................................... H10 HConsultants’ and TWGs’ Inputs ............................................................................. H11 

HEvaluation of Outputs and Achievement of Outcome ............................................. H12 HOverall Assessment and Rating ............................................................................. H17 HMajor Lessons Learned .......................................................................................... H20 

HOwnership of TOR and Work Program by GOP Technical Personnel................... H21 HSupport of Senior Officials ..................................................................................... H21 HBroad Stakeholders’ Consultation.......................................................................... H22 HLead Role Carried Out by GOP Agencies in Avoiding Duplication ........................ H22 HKey Ownership and Leadership of the GOP Through the Inter-Agency

Harmonization Committee (HC)................................................... H22 HParticipation of ADB Sector Focal Persons, in supporting the PhCO TA Team .... H23 HJoint Annual Consultation Meetings of the GOP and Development Partners

(DPs)............................................................................................ H23 HRecommendations and Follow-up Actions.............................................................. �23 

Appendices

HAppendix A - General Plan: Implementation Approach Report............................... �A-1 HAppendix A.1 - Design and Monitoring Framework ............................................. �A-5 HAppendix A.2 - Indicative Work Program (April 2006) ......................................... �A-9

HAppendix B - Establishing GOP Ownership through Consultation: Highlights of Preparatory Meeting with COA.......................................................... �B-1

1 This preliminary Report was prepared by Mr. Ramon Noriel B. Sicad, Project Management Consultant and

TA Coordinator, with inputs from the members of the GOP Harmonization Committee, Technical Working Groups (TWGs) and Consultant Teams as well as the ADB-PhCO TA Team.

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HAppendix C - Partnership for Results: Protocol in Procurement of Consultants and Ensuring Delivery of Outputs...................................................... �C-1

HAppendix D - Promoting Interagency Teamwork: Highlights of HC-TWG Consultation Meeting......................................................................... �D-1

HAppendix E - Integration of Parallel Initiatives: Highlights of Meeting with DENR/EMB Personnel on the Complementation of TA and RETA Activities ............................................................................................ �E-1

HAppendix F - Aligning and Matching Scope and Resources: Using the Design and Monitoring Framework (DMF) in Ascertaining Scope on Procurement...................................................................................... �F-1

HAppendix G - Complementation of Various Technical Assistance Projects of Development Partners to the GOP.................................................... �G-1

HAppendix H - Looking Ahead to Frontline Service Delivery: LGU-Related Linkages of the TA on Harmonization................................................ �H-1

HAppendix I - Managing Multi-Agency Assignments: Highlights of Meeting on Agency with DBM on Assignments of Consultants on the Cascading of the OPIF ...................................................................... �I-1

HAppendix J - Sustainability of GOP & DP Support: Minutes of the GRP-ADB-WB-AusAid Meeting on LAR/IR Harmonization........................................ �J-1

HAppendix K - Aligning Policy & Operational Concerns: Highlights of the ADB & LAR TWG Meeting on LAR Harmonization ....................................... �K-1

HAppendix L - Supporting the Delivery of Outputs: Summary of Financial Status (as of 30 April 2008) .......................................................................... �L-1

HAppendix M - Importance of High-Level Support & Guidance: Highlights of 6 February 2008 Harmonization Committee Meeting ........................... �M-1

HAppendix N - Working Continually on Mutual Accountability: Highlights of the 21 February 2008 Joint GOP-DP Meeting on Harmonization................. �N-1

HAppendix O - Mobilizing Existing Capacities in Delivering Results: Actual Consultants’ Inputs ............................................................................ �O-1

HAppendix O.1 - Details of Consultants’ Inputs ..................................................... �O-2 HAppendix P - Active Participation of Counterpart GOP Officials and Personnel:

List of Members of the HC, TWGs and ADB-TA Team...................... �P-1 HAppendix Q - Delivering on Results: Achievement of Outputs & Outcomes ........... �Q-1 HAppendix R - Importance of Institutional Support: Special Order of the DENR on

the Creation of an Advisory Panel & TWG to Harmonize Efforts on the Strengthening of the Philippine EIA System ................................ �R-0

HAppendix S - Benchmarking the Implementation Process: Good Practices on Capacity Development (CD).............................................................. �S-1

HAppendix T - Qualitative Assessment on Monitoring ADB’s Progress on Commitments Under the Paris Declaration - Philippines ................... �T-1

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List of Tables HTable 1: Comparison of TA Estimates and Actual Expenditures (in US$) ........... �8 HTable 2: Component Fund Allocation & Actual Expenditure (in US$) .................. �9 HTable 3: Comparison on the Use of Consultants’ Inputs.................................... �11 HTable 4: Summary of Outputs and Outcome Indicators, by Component............ �14 HTable 5: Initial Progress and Overall Performance on Paris Declaration

Indicators and targets .......................................................................... �17 HTable 6: Mechanisms Employed in Applying Good Practices on CD in TA

Implementation .................................................................................... �19

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BAbbreviations ADB Asian Development Bank AFR Annual Financial Report AMLAC Anti-Money Laundering Council API Agency Performance Indicator APR Agency Performance Review ARMM Autonomous Region of Muslim Mindanao AusAID Australian Agency for International Development BESF Budget of Expenditures and Sources of Financing BIS Baseline Information System (on Procurement) BLGF Bureau of Local Government Finance BLI Baseline Indicators BSP Bangko Sentral ng Pilipinas (Central Bank of the

Philippines) BTr Bureau of Treasury CD Capacity Development CFO Commission of Filipinos Overseas CICT Commission on Information and Communication

Technology CIDA Canadian International Development Agency CLE Country Level Evaluation CNC Certificate of Non-Coverage COA Commission on Audit COP Community of Practice COSO Central Operations Services Office COS Country Operational Strategy CPM Customized Procurement Manuals CSO Civil Society Organization CSC Civil Service Commission CSP Country Strategy and Program CSS Country Safeguard Systems CWID Central and West Asia Infrastructure Division DAC Development Assistance Committee of the OECD DBM Department of Budget and Management DENR Department of Environment and Natural Resources DFA Department of Foreign Affairs DFID Department for International Development DILG Department of Interior and Local Government DMF Design and Monitoring Framework DOF Department of Finance DP Development Partners DSWD Department of Social Welfare Development

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ECA Environmentally Critical Areas ECC Environment Compliance Certificate EA Environmental Assessment EIA Environment Impact Assessment EER Effectiveness and Efficiency Review eNGAS Electronic National Government Accounting System EMB Environmental Management Bureau FAAs Agencies with Fiscal Autonomy FAPs Foreign Assisted Projects FASPO Foreign-Assisted Projects Office FDC Film Development Council FGD Focused Group Discussion GAB Games and Amusement Board GAD Gender and Development GAFMIS Government Accountancy and Financial Management

Information System G-EPS Government Electronic Procurement System GOP Government of the Philippines GPM Generic Procurement Manual GPPB Government Procurement Policy Board HC Harmonization Committee HLF High Level Forum HUDCC Housing and Urban Development Coordinating Council IAS International Accounting Standards ICC Investment Coordination Committee IDF Interest Differential Fund IEC Information, Education and Communication IFRS International Financial Reporting Standards IGPs International Good Practices IPs Indigenous Peoples IPSAS International Public Sector Accounting Standards IR Involuntary Resettlement IRR Implementing Rules and Regulations ISA International Standards of Accounting JBIC Japan Bank for International Cooperation KfW Kreditanstalt fur Wiederaufbau (German Federal

Government Development Bank) LAMP Land Administration and Management Project LAR Land Acquisition and Resettlement LGUs Local Government Units M&E Monitoring and Evaluation MC Memorandum Circular MfDR Managing for Development Results MFO Major Final Output MIMAP-CBMS Micro Impacts of Macroeconomic Adjustment Policies –

Community-based Monitoring System

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MMUSP Metro Manila Urban Services for the Poor MOU Memorandum of Understanding GMTCRB Movie and Television Review and Classification Board MTEF Medium-Term Expenditure Framework MTPDP Medium-Term Philippine Development Program NCC National Computer Center NCRFW National Council for the Welfare of Filipino Women NEDA National Economic and Development Authority NGAS New Government Accounting System NGO Non-Government Organization NHA National Housing Authority NICA National Intelligence Coordinating Agency NSC National Security Council NTRC National Tax Research Center ODA Official Development Assistance OECD Organization for Economic Co-operation and

Development OED Operations Evaluation Division OMA Office on Muslim Affairs OMB Optical Media Board OMES On-line Procurement Monitoring and Evaluation System OP Office of the President OPIF Organizational Performance Indicator Framework OPS Office of the Press Secretary OVP Office of the Vice President PAWB Protected Areas and Wildlife Bureau PBAs Program-Based Approaches PBD Philippine Bidding Document PCGG Presidential Commission on Good Government PCHP Philippines Country Harmonization Program PCUP Presidential Council on the Urban Poor PDEA Philippine Drug Enforcement Agency PDF Philippine Development Forum PEISS Philippine Environmental Impact Statement System PEGR Philippine Economic Governance Reform/Facility PER Public Expenditure Reform PFM Public Financial Management PhCO Philippine Country Office PhilGEPS Philippine Government Electronic Procurement Systems Philracom Philippine Racing Commission PIs Performance Indicator/s PIAC Project Inter-agency Committee PIUs Project Implementation Units PLLO Presidential Legislative Liaison Office PMS Presidential Management Staff PMU Project Management Unit

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PPPs Public-Private Partnerships PRC Professional Regulation Commission RA Republic Act RBM Results-Based Management RBME Results-Based Monitoring and Evaluation RETA Regional Technical Assistance ROWA Right-of-Way Acquisition SEA Strategic Environmental Assessment SEC Securities and Exchange Commission SER Socio-Economic Report SERD Southeast Asia Regional Department of ADB SDC Social Development Committee SDS Social Development Staff SHFC Socialized Housing Finance Corporation SPD Strategy and Policy Deparment SPM Strategic Planning Matrices SUCs State Colleges and Universities SWAp Sector-Wide Approach TA Technical Assistance TOR Terms of Reference TOT Training of Trainors TSO Technical Support Office TWG Technical Working Group UARPMO Urban Assets Reform Project Management Office UDHA Urban Development and Housing Act WB World Bank WBOM World Bank Office in Manila

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TECHNICAL ASSISTANCE CLASSIFICATION

Targeting Classification

General intervention

Sector Law, economic management and public policy Subsectors National government administration; capacity development Theme Governance, capacity development Subtheme Public governance, institutional development

NOTE

In this report, "$" refers to US dollars.

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BExecutive Summary This Report presents a summary on the major activities undertaken and the results achieved during the implementation of the Technical Assistance (TA) on Harmonization and Managing for Results. This TA was implemented by the Government of the Philippines (GOP) with the assistance from the Asian Development Bank (ADB) covering the period 01 March 2006 to 30 April 2008. The TA was undertaken in response to the request of Government of the Philippines to the Asian Development Bank (ADB) for advisory technical assistance (TA) to assist in operationalizing, at the country level, the commitments reflected in the Paris Declaration. The TA supported GOP efforts within this global harmonization framework, and in strengthening the Philippines Country Harmonization Program (PCHP). It comprises two main pillars: to improve development effectiveness; and to implement and institutionalize better results management and good practices to improve governance. The TA's primary intended impact was enhanced effectiveness and efficiency of development resulting to reduced transaction costs and incidence of delays in the implementation of projects, programs and policies. It will be achieved by (i) encouraging rationalized and simplified procedures for better implementation of development projects, (ii) aligning development partner activities with the Government’s planning cycle and development agenda, and (iii) harmonizing the development partners’ policies and procedures among themselves and with those of the Government’s to minimize costs and delays. In support to the achievement of outcomes and impact, thirteen (13) outputs were produced including the following Manuals: (1) Streamlined EIA Procedural Manual and IEC Materials (finalized and printed) with a web-based support system; (2) 2nd Edition Harmonized GAD Guidelines (finalized and printed); (3) Manual on Procurement for LGUs (finalized printed); (4) draft revised Guidelines on the Audit of Foreign-Assisted Projects; (5) draft Manual on Land Valuation of Government Lands for Housing and Resettlement Sites and IEC Materials; and (6) draft OPIF Manual. In addition, the following outputs were also prepared: (6) Harmonization Stocktaking Report; (7) GOP Harmonization Agenda and Monitoring Framework; (8) Development of Effectiveness Methodology and Tools of Trainings on Procurement; (9) Report on the Pilot Testing of Agency Performance Indicators of LGUs on Procurement; (10) Draft Assessment Report on the National Government Accounting System (NGAS); (11) LAR Harmonization Roadmap; (12) Baseline Study for 2005 & 2006 (Philippines) on the Paris Declaration and (13) 2nd Survey Round on Paris Declaration.2

2 The results of Baseline Study (2005 & 2006) and the 2nd Survey Round will serve as part of the preparations of the GOP

and DPs for the Third High Level Forum (HLF-3) which will be held in Accra, Ghana on September 2008.

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Seven (7) teams of Consultants (composed of 1 International and 18 Domestic Consultants) worked directly with the technical working groups (TWGs) in various government agencies in delivering the key outputs of the TA. A total of 81 person-months (originally planned of 62 person-months) of consulting services were provided, for over a period of 26 months, in various fields of expertise such as in procurement, financial management and audit, organizational performance indicator framework (OPIF), environmental safeguards, gender and development (GAD), land acquisition and resettlement (LAR), results-based management (RBM) and project management. While the actual person-months (81) utilized for consultancy services was higher than originally planned (62), while the actual fund utilization was lower (57%) than original planned (89%). The implementation approach of greater stakeholder partnership and ownership through learning-by-doing approach, by conducting workshops, trainings and conferences, resulted in lower funds utilized for consultancy services as originally estimated during the preparation of the TA. The total of these two (2) major expenditure items (consultants & workshops) however, were almost at the same level with 95% as the TA estimates as compared to an actual expenditure of 94%. There was strong ownership of the GOP for the TA as evidenced by the policy direction provided by the Harmonization Committee, chaired by the DOF, and the support of various TWGs of each of the sub/component. The strong ownership of sub/components activities and outputs was demonstrated through the active involvement of the lead GOP agencies in preparing the TOR, in recruiting Consultants, in the preparation of the Work Program and in closely working with the Consultants. The Consultants reported directly to the lead GOP Agencies, thus, ensuring that the delivery of outputs and achievement of outcomes were consistent with the priorities of the GOP and along the 5 principles of the Paris Declaration3. The TWGs and the Consultants jointly made adjustments on the pace of implementation, considering the workloads of agency personnel and officials, while maintaining the focus on the delivery of the required outputs and the achievement of outcomes4. There was no significant change of the scope during the implementation of the TA and the objectives of the TA were consistently pursued during its implementation. The completion date of the TA however, was extended for about 5 months (December 2007 to 30 April 2008) due to the additional activities approved by the HC such as the conduct of the 2nd Survey Round and two (2) additional OPIF Workshops for DBM Officials and Personnels.

3 The five principles are as follows: Ownership; alignment; harmonization; managing for results; and mutual accountability 4 This flexibility was made possible by integrating output-based provisions in the detailed terms of reference (TORs) of each of the Consultants All the sub/component Consultants were provided with output-based TORs, except for the Project Management Specialist who was responsible in providing overall support and coordination, thus providing the needed flexibility in carrying out the activities and in the preparation of outputs.

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In terms of the achievement of outcomes, most of the outputs contributed in strengthening the country systems (Environmental Safeguards, Procurement, GAD and in monitoring of the Paris Declaration5) while the other outputs laid the foundation in addressing the unique challenges and difficulties in each of the subcomponents (PFM, OPIF & LAR/IR). Generally, the TA was able to deliver the strategic outputs and prepared the foundation towards achieving the desired outcomes and impact of improved development effectiveness and reduced transaction costs. Overall, the inputs were used efficiently with most of the subcomponents were able to deliver more outputs than originally intended while maintaining the total actual cost allocation for consultancy services and workshops/trainings/conferences as planned. The adoption of implementation instruments (e.g. Department Orders Joint Circulars, etc.) in institutionalizing the outputs delivered by the TA also increased the likelihood of sustainability and mainstreaming the streamlined processes in the GOP and DPs operations. While the TA initially encountered start-up delays, mainly due time and adjustments needed in defining the scope and complementation of components in relation to other technical assistance, most of the outputs were delivered within the original timeframe. The major lessons learned that facilitated the implementation were as follows: 1) Ownership of TOR and work program by GOP enhanced the effectiveness of TA inputs (consultants & funds, etc.) in delivering outputs and achieving outcomes; 2) support of senior officials in developing guidebooks and capability building interventions ensured the sustainability on the utilization of TA outputs; 3) broad stakeholders’ consultation encouraged willingness of agencies to integrate the operational requirements of partner GOP agencies (e.g. LGUs) thus, improving the country systems; 4) lead role carried out by GOP agencies in avoiding duplication and confusion of complementary support from Development Partners; 5) key ownership and leadership of the GOP through the inter-agency Harmonization Committee (HC) in orchestrating and coordinating the various initiatives in the reporting of key indicators to the Paris Declaration (baseline and annual assessment); 6) active participation PhCO TA Team and ADB Focal Persons to the TWGs and the Consultant Teams, facilitated the delivery of outputs; and 7) joint annual consultation meetings of GOP and Development Partners (DPs) hastened complementation of support to the Paris Declaration on Aid Effectiveness. In general, the TA has laid the foundation on the strengthening of the country systems and mainstreaming results orientation towards reducing transaction costs of development projects, programs and policies. To sustain the gains achieved, so far, the following recommendations and follow up actions are being proposed: 1) pursue further advocacy work to generate more support from the 5 The coordination and monitoring of the Paris Declaration commitments was further strengthened through the following

mechanisms: (a) conduct of the regular Annual Joint GOP-DP Meeting on Harmonization (2005-2008); (b) preparation of the Baseline Study for 2005/2006; (c) preparation of the 2nd Survey Round; and (d) support to the Country Level Evaluation in preparation to the HLF-3.

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Development Partners in using the strengthened country systems; 2) pursue greater efforts in linking the eNGAS and eBudget to further streamline and facilitate tracking and reporting of performance; 3) provide continuing support and technical assistance in further improving the capabilities of agencies, including the government-wide implementation of performance-based budget process using the OPIF; 4) continue the annual reporting of key performance indicators (by GOP and DPs) on the achievement of outcomes of projects, programs and policies as well as on the commitments on the Paris Declaration; and 5) solicit support from key stakeholders (e.g. Congress, CSO, private sector) on wider adoption of Managing for Development Results (MfDR) and Results-Based Monitoring and Evaluation (RBME) to help improve aid effectiveness and the achievement of MDG targets in the Philippines. The TA was implemented along the principles of international good practice in capacity development, considering its performance relative to the following criteria: (a) strong local ownership, local values are respected and self-esteem is fostered; (b) suitable positive incentives are present; (c) use is made of existing capacities and external inputs are integrated with national priorities, processes, and systems; (d) imported models are adapted to local requirements and conditions; (e) driver for change and reform leader present; (f) sequencing is appropriate; (g) processes are sound; (h) partnership and engagement are strong; and (i) the project is accountable to beneficiaries. It also contributed towards the achievements and in assessing ADB’s and GOP’s commitments under the Paris Declaration on Aid Effectiveness and the noted improvements in most of the 12 performance indicators of the Paris Declaration on Aid Effectiveness.

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Technical Assistance Completion Report Technical Assistance to the Republic of the Philippines on Harmonization and

Managing for Results (TA-4686 PH/PHI-35166)

BIntroduction 1. This Report presents and describes the major undertakings made during the

implementation of the Technical Assistance (TA) on Harmonization and Managing for Results implemented by the Government of the Philippines (GOP) with the assistance from the Asian Development Bank (ADB) covering the period 01 March 2006 to 30 April 2008. As a basic reference in the management of the TA, the GOP and ADB adhere to the principles of Managing for Development Results6, which are as follows:

a. Focusing the dialogues on results at all phases of the development

process; b. Aligning programming, monitoring and evaluation of results; c. Keeping measurement and reporting simple; d. Managing for, not by, results; and e. Using results information for learning and decision-making.

2. The implementation of this TA was carried out through a participative manner

with the active involvement of the GOP agencies (with DOF as the Executing Agency) and the ADB Philippine Country Office (PhCO). The conduct of the TA activities and the delivery of outputs were carried out under the supervision of the Harmonization Committee (HC), composed of senior officials from the DOF, NEDA, DBM and COA and coordinated by the HC Secretariat (under the DOF). The participative approach as reflected in HAppendix A ensured greater ownership of the GOP on the implementation of the TA and the delivery of outputs that are supportive to the achievement of outcomes of the TA.

3. This Report also includes the lessons learned and the first-hand observations

of the HC, TWG, ADB-PhCO TA Team and the Project Management Consultant. Also included is an assessment of the delivery of outputs and achievement of outcomes with reference to the criteria on Good Practices on Capacity Development (CD)7, which are as follows: (a) strong local ownership, local values are respected and self-esteem is fostered; (b) suitable positive incentives are present; (c) use is made of existing capacities and external inputs are integrated with national priorities, processes, and systems; (d) imported models are adapted to local requirements and conditions; (e) driver for change and reform leader present; (f) sequencing is appropriate; (g)

6 OECD-DAC. 2006. MfDR Principles in Action: Sourcebook on Emerging Good Practices, p3. 7 Evans, Martin. 2007. Capacity Development in South Asia (Occasional Paper 1). ADB, Manila, Philippines,

p20.

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processes are sound; (h) partnership and engagement are strong; and (i) the project is accountable to beneficiaries.

BDescription 4. The Government of the Philippines requested the Asian Development Bank

(ADB) in 2005 to provide advisory technical assistance (TA) 8 to assist in operationalizing, at the country level, the commitments reflected in the Paris Declaration.9 The TA supported GOP efforts within this global harmonization framework, and in strengthening the Philippines Country Harmonization Program (PCHP). It comprised two main pillars: to improve development effectiveness; and to implement and institutionalize better results management and good practices to improve governance. The TA also supported the efforts of the development partner community in coordinating, streamlining, and harmonizing operational policies, procedures, and practices with Government systems.

5. The Government showed strong sense of ownership of and commitment to

the harmonization initiative, and had allocated counterpart resources, and established an institutional framework under the Harmonization Committee (HC). 10 The HC was assigned the anchor role and worked closely with development partners in implementing the PCHP. HC’s mandate includes such priority areas as procurement; financial management and financial auditing; managing for results through performance-based budgeting; and enhancing project quality through improved procedures in the areas of environment, gender, and land acquisition and resettlement (LAR). While significant progress was made in some of these areas, especially procurement, much remains to be done. The TA focused on identifying and resolving (i) generic issues affecting the harmonization agenda (including policy, legal, regulatory and institutional aspects of the framework); and (ii) gaps between the Government’s and major partners’ processes that inhibit alignment.

BExpected Impact, Outcome and Outputs 6. The expected outcome of the TA was enhanced effectiveness and efficiency

of development by (i) encouraging rationalized and simplified procedures for 8 ADB, 2005. Technical Assistance to the Republic of the Philippines on Harmonization and Managing for

Results. Manila. 9 The Paris Declaration on improving development effectiveness through ownership, harmonization,

alignment, results, and mutual accountability resulted from the high-level forum organized by the Organisation for Economic Co-operation and Development – Development Assistance Committee held in Paris, France, in March 2005.

10 The HC is chaired by the Department of Finance (DOF) with members from the National Economic Development Authority (NEDA), Department of Budget Management (DBM), and the Commission on Audit (COA).

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better implementation of development projects, (ii) aligning development partner activities with the Government’s planning cycle and development agenda, and (iii) harmonizing the development partners’ policies and procedures among themselves and with those of the Government’s to minimize costs and delays.

7. The TA focused on achieving interim results of (i) helping the Government

achieve the harmonization objectives as defined in the Paris Declaration, and developing a tracking mechanism to monitor the country’s progress toward meeting the identified country-level indicators; (ii) further raising the level of harmonization in standard bidding procedures and bidding documents for local competitive bidding for goods, works, and consulting services; (iii) enhancing the Government’s capacity for financial management and audit and developing technical readiness to create a more effective and efficient financial management and monitoring system for public resource utilization and management, especially for ODA programs; (iv) enhancing the planning-budgeting nexus by identifying a results framework for performance budgeting, including strengthening the Government’s effectiveness and efficiency reviews (EERs) and organizational performance indicator framework (OPIF); F

11 and (v) improving the effectiveness of ODA by ensuring quality at entry of projects through alignment of the Government's practices with development partners’ safeguard policies in the areas of gender, resettlement, and environment.

8. The envisaged impacts in realizing the outcomes would be improved

development effectiveness, reduced transaction costs leading to higher levels of public investments, and poverty reduction through improved processing and implementation of development programs. The detailed design and monitoring framework of the TA is shown in HAnnex 1 while the indicative timetable is shown in HAnnex 2 of Appendix A.

BDelivery of Inputs and Conduct of Activities 9. The delivery of inputs and conduct of activities could be best presented under

the following processes: (a) start-up activities; (b) implementation; (c) financial management; (d) partnership with other TAs/DPs; (e) tracking and monitoring; and (f) consultants’ and TWGs’ inputs.

11 The EERs evaluate existing budgetary programs, activities, and projects according to their relevance in

attaining desired sectoral and departmental outcomes. The OPIF works in tandem with the EERs to increase agencies’ accountability through reporting of their outputs and outcomes that measure the agency impact on the development goals and objectives of the Government Medium-Term Philippine Development Plan. The OPIF is fundamental for operationalizing planning and budgeting reforms.

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BStart-up Activities

10. The delivery of inputs was anchored on stakeholders’ participation and ownership thus, helping ensure the delivery of outputs from the start of implementation. At the onset, the following mechanisms for stakeholders’ participation, among others, were carried out:

a. The conduct of Stocktaking and Inception Workshop 12 provided an

opportunity for all the key implementing agencies in understanding the objectives of the TA, in discussing and assessing the required outputs for each component, and in preparing a draft TOR for Consultants; and

b. The conduct of consultation meetings helped define the relationship

between the GOP agency, the ADB and the Consultants. HAppendix B reflects that one of the agreements made with COA was on the direct supervision of TA Consultants while HAppendix C covers the general process on the preparation of the TOR, procurement of Consultants and conduct of activities.

BImplementation

11. The HC and the TWGs directly participated in the implementation of the TA through the following: (a) support to DOF and ADB in the procurement of Consultants; (b) participation in Consultants’ deployment meetings; (c) preparation of work program and budget; (d) contracting for workshop venues and supplies; (e) conduct of consultation meetings and workshops with key stakeholders; and (f) review and endorsement of Consultants’ outputs, among others.

12. The Consultant Teams worked directly with the lead GOP agencies in

carrying out their respective tasks and in the delivery of outputs. The lead agency of each of the components/subcomponents were as follows:

a. Department of Finance (DOF) on the Overall Support to Harmonization

Process (Part A), with the support of NEDA, DBM and COA, as members of the Harmonization Committee (HC) as well as the Asian Development Bank (ADB) on the preparation of the results-based harmonization and monitoring framework and on the overall coordination and management of TA activities;

b. The Government Procurement Policy Board – Technical Support Office

(GPPB-TSO), under the supervision of the Department of Budget and 12 The Stocktaking Workshop conducted in 20-21 April 2006 with the participation of thirty-three (33)

representatives from all the agencies involved in the implementation of the TA (DOF, NEDA, DBM, COA, DENR, UARPMO and ADB.

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Management (DBM), on strengthening the procurement capabilities of Local Government Units (LGUs) (Part B.1);

c. Commission on Audit (COA) on the streamlining of financial management

and audit processes (Part B.2), particularly on the National Government Accounting System (NGAS) and the Audit of Foreign Assisted Projects (FAPs);

d. Department of Budget and Management (DBM) on the cascading of the

Organizational Performance Indicator Framework (OPIF) to key agencies of Government (Part C);

e. Environmental Management Bureau (EMB) of the Department of

Environment and Natural Resources (DENR) in the streamlining of processes in the issuance of the Environment Compliance Certificate (ECC) under the Philippine Environmental Impact Statement System (PEISS) towards enhancing quality at entry of projects (Part D.1);

f. Social Development Staff (SDS) of the National Economic and

Development Authority (NEDA) in the streamlining and improving processes on gender and development (GAD) towards enhancing quality at entry of projects (Part D.2); and

g. Housing and Urban Development Coordinating Council (HUDCC), the

agency that absorbed the Urban Asset Reform PMO (UARPMO) – former lead agency prior to integration to HUDCC, in the streamlining and improving processes on land acquisition and resettlement (LAR) towards enhancing quality at entry of projects (Part D.3).

13. There was strong sense of ownership by the GOP to the TA as evidenced by

the policy direction provided by the Harmonization Committee and various TWGs of each of the sub/component. The seven (7) TWGs jointly worked together, through assessment and coordination meetings in tackling the various concerns related to the strengthening of the country systems and mainstreaming results orientation.

14. In handling the concern on the extent of harmonization and alignment (on

procurement, PFM, and other areas) relative to the international standards, the approaches indicated below (based on the experiences in procurement reforms) were agreed upon by the TWG members as the guide in the discussions with the DPs in working towards harmonization and alignment of policies and procedures ( HAppendix D).

a. Start the negotiation in areas with similar or common approaches; b. In case of minor differences, agree on thresholds (such as those in

Philippine Bidding Document, PBD) where GOP systems will apply; and

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c. Address areas with divergent policies only after the common areas and less problematic areas were already resolved.

15. The ownership of sub/components activities and outputs was demonstrated

through the active involvement of the lead GOP agencies in preparing the TORs, in recruiting their respective sub/component Consultants, and in preparing the Work Program and Budget. In cases in which similar initiatives were being undertaken with the support of one or more Development Partners (DPs), remedial measures were instituted in minimizing or avoiding the duplication of activities in consultation with the TWGs, such as the following:

a) In the case of the streamlining of the EIA System, the ADB provided

assistance, through the TA on Harmonization and Managing for Results and through RETA on Strengthening the Country’s Safeguard System, in the activities to integrate and synchronize its implementation in the context of harmonization of efforts ( HAppendix E); and

b) In the case of procurement, the TWG initially encountered difficulties in

ascertaining the scope of work to be covered under the TA on Harmonization and Managing for Results relative to those being considered by other proposed TAs (from ADB & other DPs). This was eventually resolved with the help of a Design and Monitoring Framework (DMF) in conceptually visualizing the interface and the timing of interventions ( HAppendix F).

16. Taking into account the work demands of agencies involved in the TA

implementation, the Consultants and the TWGs could jointly make adjustments/revisions on the schedule in the work program while maintaining focus on the delivery of the required outputs and the achievement of outcomes. This flexibility was achieved by integrating output-based provisions in the detailed terms of reference (TORs) of each of the Consultants in coordination with the TWGs. All the sub/component Consultants were provided with output-based TORs, except for the Results-Based Management Specialist and Project Management Specialist F

13. 17. The TWGs and Consultants jointly made adjustments on the pace of

implementation, considering the workloads of agency personnel and officials, while maintaining the focus on the delivery of the required outputs and the achievement of outcomes F

14.

13 These two Consultants provided support to the Harmonization Committee with the Project Management Consultant providing assistance to DOF and ADB in coordinating activities of seven (7) TWGs involving six (6) agencies, eighteen (18) other Consultants as well as with other Development Partners (DPs). 14 This flexibility was made possible by integrating output-based provisions in the detailed terms of reference (TORs) of each of the Consultants All the sub/component Consultants were provided with output-based

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18. Consultation meetings and workshops carried out by the TWGs with the

support of the TA Consultants and direct payments made by ADB-PhCO (to suppliers and other service providers engaged by the GOP Agencies) for workshops and other related activities based on the work program endorsed by the GOP Agencies, facilitated the delivery of outputs.

19. The implementation of the TA also provided opportunities within ADB units to

jointly work together pursuing similar activities such as the conduct of the initial assessment of the Philippines Social and Environmental Safeguards. This joint assessment was carried out by ADB-PhCO & RSES/RSDD in coordination with concerned GOP agencies and NGOs in the areas of environmental impact assessment (EIA) and land acquisition and resettlement (LAR).

20. As part of the implementation of the TA, several units within ADB had noted

the gains of the GOP and the TA in support to the Paris Declaration. These units included the following: (i) the Strategy and Policy Department (SPD), the focal unit on the Managing for Development Results (MfDR), noted the progress of the Philippines in harmonization and the steps being taken in bringing Results-based Management and MfDR to the LGU level; and (ii) the Operations Evaluation Division (OED), as part of its evaluation, also noted the achievements of the Philippines regarding Paris Declaration, through improved processes that are integrated into the operations of the PhCO and the GOP.

BPartnership with other TAs/DPs

21. Besides coordinating the implementation within the GOP, other development partners were also actively working in improving the country systems and in mainstreaming results orientation in support to the GOP commitments to the Paris Declaration ( HAppendix G). The TA outputs could also be applied with subsequent capacity building and strengthening systems at the LGU level related to procurement, public financial management, performance-based budgeting, environment, GAD and LAR ( HAppendix H).

22. Joint activities with other DPs were carried out on the following: (a)

preparation of the case study on procurement reform in the Philippines (ADB with DFID); (b) update of the Generic Procurement Manual (ADB with WB & JBIC); (c) upgrade of the Philippine Government Electronic Procurement Systems (PhilGEPS with ADB, Korean ICT Fund & WB); (d) cascade of OPIF to agencies involving ADB with AusAID ( HAppendix I); (e) harmonization and strengthening of the environmental safeguards (ADB with WB & CIDA); and (f)

TORs, except for the Project Management Specialist who was responsible in providing overall support and coordination, thus providing the needed flexibility in carrying out the activities and in the preparation of outputs.

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the harmonization of LAR/IR concerns (even after TA completion) with ADB, WB and AusAID ( HAppendix J and HAppendix K).

BFinancial Management

23. The conduct of TWG activities by the TWGs and the Consultants were guided by their respective work programs while the payment were carried out through the direct payment by ADB. This arrangement was adopted to minimize the work demands for GOP’s administrative and financial support services personnel 15.

24. The implementation approach of greater stakeholder partnership and

ownership resulted in utilizing less funds for consultancy services and more on the learning-by-doing approach (workshops, trainings and conference) as originally estimated during the preparation of the TA (Table 1). The total of these two (2) major expenditures however, were almost at the same level with 95% as the TA estimates as compared to an actual expenditure of 94%. (Appendix L).

Table 1: Comparison of TA Estimates and Actual Expenditures (in US$)

TA Estimates (Nov 2005)

Actual (30 April 2008)

Expenditure Items

Amount % Amount %

Remarks

1. Consultants/Travels 623,000 89 401,735 57 1 International & 18 Domestic Consultants

2.Workshops/Trainings/Conferences 44,000 6 260,443 37 Learning-by-doing approach w/ stakeholders consultation

3. Misc/Manuals/IEC 10,000 1 36,898 5 Manuals and IEC materials were produced

4. Contingencies 23,000 3 - TOTAL 700,000 100 699,076 100 25. In the initial work programs, many of the TWGs included the printing of

Manuals as one of the outputs but was eventually scaled down due to reduction on the available US$ funds resulting from the strengthening of Philippine peso relative to the US$ 16. The grant allocation 17 and the actual expenditures, per component (Table 2) indicated that most of the components were able to deliver the major outputs within the allocated

Appendix A - 15 There was a general concern however, on the part of the DOF (as the EA) for greater

involvement in allocation and disbursement of TA funds. Appendix B - 16 The TA funds were denominated in US$ while disbursement for workshops, trainings and

conferences were in local currency (PhP). It was also noted on P/$ exchange rate fluctuated from P55/$ in March 2006 to P43/$ in April 2008, thus more US$ were needed to finance the activities of the TWGs and Consultant Team which were usually paid in Philippine Peso.

17 The estimated grant allocation per component was initially drafted by the ADB-TA Team based on the

priority commitments of the GOP on the Paris Declaration. The draft estimate was sent by email to all the members of the HC and TWG and was eventually accepted by the HC and all the TWGs.

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budget. Only Part A (Overall Support) exceeded the initial allocation by about US$14,000 due to additional expenditures as approved by the HC, related to the 5-month extension period and the conduct of additional activities related to the 2nd Survey Round on the Paris Declaration indicators.

Table 2: Component Fund Allocation & Actual Expenditure (in US$)

Allocation (Aug 2006)

Actual Expenditures

Components/ Expenditure Items

Amount Amount %

Remarks

Part A – Overall Support Consultants (2) 126,966 83 Training/Workshops 18,395 12 Misc Contracts 7,116 5

Sub-Total 137,700 152,477 100

Increase in actual expenditures was mainly due to additional person-months for Consultants due to 5-month extension of TA and conduct of 2nd Survey Round, both approved by the Harmonization Committee.

Part B.1– Procurement Consultants (3) 19,374 16 Training/Workshops 87,950 74 Manuals 11,994 10

Sub-Total 125,000 119,317 100

At least 8 FGDs w/ LGUs were conducted in preparing the Procurement Manual which was subjected to an LGU validation workshop; Trainors’ Training was also undertaken on development of Training Effectiveness Methodology

Part B.2–Financial Mgt & Audit Consultants(2 w/1 International) 91,741 91 Training/Workshops 9,545 9

Sub-Total 118,100 101,287 100

Consultants’ inputs were mainly utilized in assessment of Auditing and NGAS in partnership with the COA TWG

Part C – Budget (OPIF) Consultants (4) 77,246 71 Training/Workshops 32,179 29

Sub-Total 104,200 109,426 100

Consultants’ inputs were mainly for cascading of OPIF to 21 Agencies and preparation of OPIF Manual. Additional OPIF Capability workshops were undertaken for 50 DBM personnel, as approved by HC.

Part D - Project Quality at Entry D.1 – Environment Consultants (4) 34,911 49 Training/Workshops 29,292 41 Manuals 7,143 10

Sub-Total 70,000 71,346 100

Various stakeholders’ consultation meetings and workshops were undertaken by the TWG EIA and Consultant Team involving the national government agencies & LGU personnel, representatives of industry groups as well as with DENR/EMB personnel from all regions of the country in the review and streamlining of the EIA Procedural Manual and the web-based EIA support system.

D.2 – Gender & Development (GAD) Consultant (1) 21,007 28 Training/Workshops 43,110 58 Manuals 10,076 14

Sub-Total 75,000 74,193 100

Workshops and Trainors’ Training (142 participants from all regions) were conducted in applying and updating the Harmonized GAD Guidelines with support of the GAD ODA Network.

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Allocation (Aug 2006)

Actual Expenditures

Components/ Expenditure Items

Amount Amount %

Remarks

D.3- Land Acquisition & Resettlement (LAR) Consultants (2) 30,490 43 Training/Workshops 32,856 46 Manuals 7,685 11

Sub-Total 70,000 71,030 100

Pilot testing and consultation meetings with stakeholders conducted on the manual for land valuation were carried by the TWG

BMonitoring and Reporting on Results

26. The progress of implementation was being tracked at least on three (3) levels – at the TWG level, oversight level, and jointly by GOP and the DPs, as indicated below.

a. At the TWG level, there was greater information exchange through various

means available such as emails, text messages, face-to-face meetings, notes-to-file on major meetings; and through the distribution of all updates on the status (at least monthly) to all members of the HC, TWGs and the Consultant Teams through emails 18.

b. At the policy and oversight level, the Harmonization Committee

Meetings 19 served as the venue for direct reporting on the implementation of the TA. These meetings were convened by the DOF, as the Chair of the HC, with the HC providing guidance and instructions on all matters related to the TA implementation 20. ( HAppendix M).

c. Once a year and usually before the conduct of the Philippine Development

Forum (PDF), an Annual Joint GOP-DP Meeting on Harmonization 21 was being undertaken as a venue to update all the participants on the progress of various initiatives related to the Paris Declaration on Aid Effectiveness. The DOF and the ADB, as the Focal DP on the Paris Declaration in the

18 The EIA TWG and EIA Consultant Team (at EMB/DENR) extensively used email in preparing for the

consultation workshops and the Streamlined EIA Procedural Manual thus, allowing faster turn-around time in generating feedback for the updating and revising the draft EIA Procedural Manual. The TWG, with the support of the EIA Consultant Team was able to prepare (nine) revisions and completed the Streamline EIA Procedural Manual within its 5-month implementation period. The EIA TWG and Consultant Team even sent emails even late in the evening but it eventually slowed down after receiving some feedback that emails sent late in the evening was already causing sleep disturbance, from other members TA support Team who had their emails routed to the cellular phones.

19The HC conducted nine (9) meetings in the course the TA implementation (March 2006 to April 2008), as indicated in the following dates: (1) 21 July 2006; (2) 25 September 2006; (3) 04 January 2007; (4) 27 February 2007; (5) 15 June 2007; (6) 11 October 2007; (7) 5 November 2007; (8) 12 December 2007; and (9) 6 February 2008.

20 Agenda folders were prepared with the assistance of the Project Management Consultant and the HC TWG as well as ADB-TA Team, including the documentation of the highlights of the meeting for reference in HC decision-making.

21 Annual Joint GOP-DP Meetings on Harmonization were held on the following dates: (1) 20 March 2006; (2) 5 March 2007; and (3) 21 February 2008. The first Annual Joint GOP-DP Meeting was held in 2005 while this Technical Assistance was being conceptualized.

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Philippines, jointly convened this meeting. The HC determined the meeting agenda while the TWGs prepared the presentation materials F

22 consisting of updates and follow-up activities for the subsequent year. ( HAppendix N).

27. The available means for constant communication and reporting through

emails, cellular phones, among others, as well as the regular and direct reporting to the Harmonization Committee allowed the TWGs and the Consultant Teams to devote most their time in undertaking stakeholders’ consultation and in preparing the outputs needed to strengthen the country systems and in mainstreaming results orientation. As such, the TA implementation was able to position properly and allowed the Consultants as effective agents of change in strengthening the country systems covered under the TA on Harmonization and Managing for Results. F

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BConsultants’ and TWGs’ Inputs

28. Seven (7) teams of international and domestic consultants (composed of 1 International and 18 Domestic Consultants) worked directly with the technical working groups (TWGs) of various government agencies in undertaking the TA work. A total of 81 person-months (originally planned of 62 person-months) of consulting services were provided in various fields of expertise such as in procurement, financial management and audit, organizational performance indicator framework (OPIF) , environmental safeguards, gender and development (GAD), land acquisition and resettlement (LAR), results-based management (RBM) and project management.

29. The use of experts available in the country provided some flexibility in the

scheduling of activities and in the delivery of more outputs while maintaining control on cost. Only about 6 person-months of International Consultant input were utilized as compared to the planned 14 person-months. On the other hand, about 75 person-months were utilized as compared to the planned 48 person-months for Domestic Consultants (Table 3). The details on the Consultants inputs are shown in ( HAppendix O) indicating the person-months and the Gantt chart of contract duration ( HAppendix O.1).

Table 3: Comparison on the Use of Consultants’ Inputs

Person-Months of Consultants’ Input TA Estimates (Nov 2005) Actual (April 2008) International 14 6 Domestic 48 71

22 The packaging of the Agenda folders for the Joint GOP-DP Meeting on Harmonization was carried out by

the Project Management Consultant with the support of the ADB-TA Team. 23 It was noted, in earlier ADB studies (ADB 2001 & Narayanasuwani 2001) on various technical assistance

for capacity development, that “many consultants were basically report-oriented and less effective as change agents” as cited by Evans (ADB, 2007, p16).

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Total 62 81 30. The members of the HC and the TWGs provided active support in the

conduct of priority activities needed, thus ensuring the delivery of outputs and achievement of outcomes ( HAppendix P).

31. There was no significant change on the scope during the implementation of

the TA as the objectives of the TA were consistently pursued during its implementation. The completion date of the TA was extended for about 5 months (December 2007 to 30 April 2008) due to the additional activities that the HC suggested to pursue in improving the overall management of the ODA process. This was agreed upon by the Harmonization Committee (HC) during its 12 December 2007 meeting and was reiterated during the 6 February 2008 meeting.

BEvaluation of Outputs and Achievement of Outcome

32. To achieve the outcomes, thirteen (13) outputs were produced consisting of Manuals and other related outputs.

33. The Manuals prepared are as follows: (a) Streamlined EIA Procedural Manual and IEC Materials (finalized and printed) with a web-based support system; (b) 2nd Edition Harmonized GAD Guidelines (finalized and printed)

F

24; (c) Manual on Procurement for LGUs (finalized and printed); (d) Draft revised Guidelines on the Audit of Foreign-Assisted Projects; (e) Draft Manual on Land Valuation of Government Lands for Housing and Resettlement Sites and IEC Materials; and (f) Revised draft OPIF Manual.

34. In addition, the following outputs were also prepared: (a) Harmonization Stocktaking Report; (b) GOP Harmonization Agenda and Monitoring Framework; (c) Development of Procurement Training Effectiveness Methodology and Tools; (d) Report on the Pilot Testing of Agency Performance Indicators of LGUs on Procurement; (e) Draft Assessment Report on the National Government Accounting System (NGAS); (f) LAR Harmonization Roadmap; (g) Baseline Study for 2005 & 2006 (Philippines) on the Paris Declaration on Aid Effectiveness and (h) 2nd Survey Round on Paris Declaration. F

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24 The checklist on GAD-responsiveness of projects was used in assessing the GAD-responsiveness of

completed projects for 2005/2006 and ongoing projects in 2006 with the support of 19 Development Partners (DPs) in the Philippines. The ODA GAD Network (on its 4 May 2004 meeting) agreed that all DPs will submit the list of projects for 2007 classified as to gender responsiveness on or before 31 January 2008, and every year thereafter. This will serve as the annual process to ensure the timely reporting of GOP/NEDA of ODA allocations for gender related concerns to the Philippine Congress and to the Philippine Development Forum (PDF).

25 The results of Baseline Study (2005 & 2006) and the 2nd Survey Round will serve as part of the preparations of the GOP

and DPs for the Third High Level Forum (HLF-3) in Accra, Ghana in September 2008.

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35. It was noted that the HC and the TWGs instituted measures that facilitated

the delivery of outputs and contributed to the achievement of outcomes. The following are some of the mechanisms used: (a) conduct of activities for delivery of outputs were identified and undertaken under the leadership and guidance of the GOP (HC & TWGs); (b) formal and informal mechanisms were pursued by the TWG such as the issuance of Department Special Order in organizing the TWG for the environment component ( HAppendix R); (c) open and transparent communications through email and text messages; and (d) flexibility of schedules in the conduct of activities to ensure delivery of outputs, among others.

36. The preparation of outputs of all the subcomponents were carried out through

teamwork of the GOP TWGs and the Consultants Teams as well as through consultation with key stakeholders within and outside the agencies concerned. The joint preparation of the work program also provided guidance to the Consultant Teams in preparing outputs that are relevant to the GOP agencies and in considering international good practices (IGPs) in the streamlining and improving the country processes.

37. The joint efforts of the TWGs and the Consultant Teams resulted in the

delivery of outputs beyond the original scope of the TA in most of the subcomponents and contributed in strengthening the country systems and mainstreaming results orientation ( HAppendix Q).

38. In terms of outcomes, the following measures greatly enhanced the

sustainability of the achievement of outcomes: (a) GOP ownership of initiatives even before Paris Declaration on Aid Effectiveness; partnership between GOP-DP (annual meetings, baseline and follow-up surveys, country evaluation, HLF-3, etc); (b) Department Orders and Joint Circulars; (c) GOP Budget for subsequent activities (printing of procurement and EIA Manuals using GOP funds); (d) LGU funding on training of personnel on procurement; (e) continuing support of other DPs in follow-up activities (WB on LAR/IR; and (f) KfW IDF in support to harmonization activities (training of COA personnel on Audit of FAPs, communication and advocacy including maintenance of DOF/Harmonization website).

39. Generally, the TA was able to deliver the strategic outputs and prepared the

foundation towards achieving the desired impact of improved development effectiveness, reduced transaction costs through improved processing and implementation of development programs. The summary of outputs and early indicators in achieving outcomes, by component, are shown in Table 4 while more details are shown in HAppendix Q.

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Table 4: Summary of Outputs and Outcome Indicators, by Component.

Components Output Indicators Outcome Indicators

Part A – Overall Support to HC

• Harmonization Stocktaking Report prepared

• GOP Harmonization Agenda defined and presented to Joint GOP and DPs Consultation Meeting on Paris Declaration

• GOP Action Plans for 2007-2010prepared (by all TWGs)

• Baseline Study (2005/2006) on indicators of GOP’s commitment to Paris Declaration completed.

• 2008 Survey on the indicators of the Paris Declaration conducted and completed

• Overall management and support provided in the implementation of 4 components involving 7 TWGS in 6 GOP agencies and 19 individual Consultants as well as coordination with Development Partners (DPs).

Improved M&E mechanism in tracking progress on commitments to Paris Declaration • Regular Annual Joint GOP-

Development Partners Meeting on Harmonization (2006, 2007 & 2008)

• M&E Mechanism on Paris Declaration established with Baseline Study (2005 & 2006) completed

• 2nd Survey Round (2007) on the indicators of the Paris Declaration completed

• Supported Country Level Evaluation (CLE) in preparation for the Third High Level Forum (HLF-3) in Accra

Part B.1 - Procurement

• Training Effectiveness Methodology developed with the participation of the interagency Regional Procurement Training Specialists

• 60 Trainors’ (from all the regions) trained on the use of feedback mechanism in assessing training effectiveness on procurement

• Procurement Manual for LGUs (4 volumes) prepared, printed and distributed, as approved by GPPB after the validation process in consultation with LGU stakeholders

• Report on Agency Performance Indicators (API) for LGUs prepared with the participation of selected LGUs

• Additional (200) copies of Generic Procurement Manual (GPM) printed and distributed

• Improved capacity of LGU personnel on procurement processes resulting from capability building activities

• Broader support of LGU Officials resulting from consultations undertaken in the preparation of Procurement Manual for LGUs

• Continued partnership of GOP and DPs in upgrading the Philippine Government Electronic Procurement System (PhilGEPS)

• Increased level on the use of PhilGEPS by government agencies

Part B.2 – Financial Mgt and Audit

• Report on the Assessment of New Government Accounting System, Part I & II (3 volumes) covering National Government Agencies, Local Government Units (LGUs) and Consolidation for the whole GOP;

• Report on the Evaluation of the Philippine Audit System;

• Revised Guidelines on the Audit of FAPs using ISA; and

Early indications in place on the achievement of outcome for a speedier and more transparent system on financial management and audit • Identified List of PFM Common

Reports (COA, DBM, NEDA, DOF, BSP, CPBD) that will eliminate redundant reports

• Organized inter-agency TWG

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Components Output Indicators Outcome Indicators • Action Plan prepared on streamlining

and harmonizing PFM processes within GOP and with DPs

responsible for the harmonization of PFM processes & reporting

• COA ownership established based on the recommendations of the Assessment Reports on Accounting & Auditing towards further improvement on PFM

Part C – Performance-based Budget Process (OPIF)

• Installed a performance-based budget system (OPIF) in 21 agencies/offices through a series of workshops in the preparation of logical framework and performance indicators as part of 2008 budget preparations

• Draft OPIF Manual revised; • Draft OPIF M&E Framework

prepared; • Fifty (50) personnel trained on

Organizational Performance Indicator Framework (OPIF); and

• OPIF Roadmap updated

Cascading of the OPIF to additional agencies as well as the preparation of the OPIF Book and OPIF Manual were being considered by DBM for sustained efforts in improving performance-based processes through the OPIF.

Part D.1 - Environment

• Preliminary Assessment Report prepared under ADB RETA on Strengthening Country Safeguard Systems (CSS) with the support from ADB TA and RETA Teams

• EIA Process Manual updated and printed, including flowchart & Annexes (with enabling Memorandum Circular issued on August 2007)

• Four (4) IEC Print Materials developed with leaflet for the general public (printed and disseminated). Primers for LGUs, GAs and industries were prepared, printed and disseminated;

• Developed on-line web-based support/guidance system on the EIS System Procedures including online project screening process

• Joint ADB & WB Report prepared on the Philippine EIA System (printed and distributed by WB)

Early indications on achievement of outcome on the implementation of streamlined EIA Guidelines are already in place • Facilitated ECC review and

issuance resulting from clarification roles and responsibilities of EMB relative to other agencies

• Promoted transparency in ECC requirements and application with web-base database support on EIA system

• Advocacy effort integrated as part of the strategy in gaining broader support from the general public, national government agencies, LGUs and industry groups

• DENR Memorandum Circular (MC 2007-08 dated 13 July 2007) issued clarifying the use of the EIA recommendations as a project/program planning tool and input to the permitting requirements of other government agencies.

• Streamlined EIA System served as common framework on the

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Components Output Indicators Outcome Indicators technical assistance on harmonization work with ADB and WB as well as other bilateral agencies such as CIDA

Part D.2 – Gender and Development (GAD)

• 142 Trainors’ trained on use of Harmonized GAD Guidelines, from national and regional agencies as well as State Colleges & Universities (SUCs) & NGOs

• Harmonized Gender and Development Guidelines for Project Development, Implementation, Monitoring and Evaluation revised

• Printing of 2nd Edition of Harmonized GAD Guidelines Completed

Early indication already in place on achievement of outcome of completion and implementation of revised GAD Guidelines. • 2nd Edition of Harmonized GAD

Guidelines already prepared and presented to the ODA GAD Network (composed of GOP and DPs)

• Some participants to the Trainors’ Training from Agencies and the Regional Offices were able to conduct echo training utilizing the 5% allocation for GAD related activities.

• Monitoring of gender-responsiveness of ODA programs and projects using the Harmonized GAD Guidelines provided inputs to the 2007 NEDA Report on GAD responsiveness of projects and programs of Development Partners (DPs), which was disseminated to the DPs.

Part D.3 – Land Acquisition and Resettlement (LAR)

• Preliminary LAR Assessment Report prepared under ADB RETA on Strengthening Country Safeguard Systems (CSS) with the support from ADB TA and RETA Team.

• Prepared Information Education and Communication (IEC) materials composed of the ff: (a) PIAC Guide on Post Proclamation Process and Standard Valuation Methodology; (b) Quick-reference brochure on the Standard Valuation Methodology; (c) Quick reference brochure on PIAC roles, responsibilities and linkages; and (d) CD-ROM on LAR-related studies; and

• Prepared roadmap on LAR integrating concerns and recommendations of inter-agency LAR TWG that are integrated into the work program of HUDCC, NEDA and other GOP Agencies & Development Partners (e.g. ADB, WB, etc)

Early indications toward the achievement of outcome on the harmonized processes on LAR/IR • Promoted interagency work with

strong GOP ownership and agency participation in the development of the land valuation manual and in the formulation of the LAR Roadmap

• LAR Roadmap served as the reference in further coordination work by the GOP and DPs (ADB, WB and AusAID) towards harmonization of policies and procedures on LAR/IR of GOP and DPs

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BOverall Assessment and Rating 40. The TA was relevant and was consistent with both the priorities of the GOP

and the ADB as embodied in the MTPDP and the CSP. It provided an opportunity for GOP and ADB in carrying out initiatives in support of the Paris Declaration on Aid Effectiveness while maintaining the 5 principles embodied in the Paris Declaration.

41. The TA effectively achieved its desired outcomes in most of the 4 major

components, namely: (a) overall support to harmonization; (b) procurement and financial management & audit; (c) managing for results through the OPIF; and improving project quality-at-entry (environment, GAD and LAR). Some components have already shown early indications for sustainability such as environment, GAD, financial management & audit as well as in procurement as indicated in HAppendix Q.

42. In terms of assessing the achievements of the GOP’s and DPs’ commitments

to the Paris Declaration (PD), the TA supported the conduct of the 2005 baseline survey on the 12 PD indicators, together with the 2006 update, and the subsequent 2008 2nd Survey Round (based on the 2007 status). Both surveys were undertaken by the GOP using the questionnaire developed by the OECD-DAC, which were also used in other countries. Encouraging improvements were noted in five indicators (Indicators #3, 5a, 6, 10a and 10b) while the 2010 targets for three indicators were achieved (Indicators #4, 5b and Indicator 7), as shown in Table 5.

Table 5: Initial Progress and Overall Performance on Paris Declaration Indicators and targets

Indicators 2005

Baseline 2006

Progress 2007

Progress 2010

Target 1 Ownership – Operational PRS Desk Review Yes 2a Quality of PFM systems Desk Review 2b Quality procurement systems Desk Review

Move up 1 measure

3 Aid reported on budget 26% 32% 51% 85% 4 Coordinated capacity development 77% 69% 86% 50% 5a Use of country PFM systems (percent of aid) 74% 55% 62% 83% 5b Use of country procurement systems (percent of aid) 37% 29% 64% 58% 6 Parallel PIUs 99 100 52 33 7 In-year predictability 19% 90% 78% 60% 8 Untied aid Desk Review Continued Progress

9 Use of program-based approaches 9% 42% 32% 66% 10a Coordinated missions 22% 20% 28% 40% 10b Coordinated country analytical work 27% 24% 44% 66% 11 Sound performance assessment framework Desk Review Yes 12 Reviews of mutual accountability Desk Review Yes

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43. In terms of applying the Good Practices in Capacity Development (CD),

various mechanisms (Table 6) were utilized to ensure that needed improvements were in place towards the achievement of results. The definitions on the criteria of the Good Practices on CD as well as the benchmarking on its application during the TA implementation are shown in HAppendix S.

44. The TA also contributed towards the achievement and in assessment of the

progress of ADB’s commitment to the Paris Declaration, as shown in HAppendix T. The assessment highlighted the following indicators in which the ADB has exceeded the overall performance of the DPs in the Philippines:

a. Indicator # 3 - Aid Flows are Aligned on National Priorities; b. Indicator # 4 - Strengthen Capacity by Coordinated Support; c. Indicator # 5A - Use of Country Public Financial Management Systems; d. Indicator # 6 - Avoiding Parallel Implementation Structures; e. Indicator # 7 - Aid is More Predictable; f. Indicator # 8 - Aid is Increasingly Untied; and g. Indicator # 9 - Use of Common Arrangements or Procedures.

45. On the other hand, the GOP and the ADB continually support an enabling

environment towards greater aid effectiveness through the following indicators:

a. Indicator # 1 - Operational National Development Strategies; b. Indicator # 2A - Reliable Country Public Financial Management; c. Indicator # 2B - Reliable Country Procurement Systems; d. Indicator # 11 - Results-Oriented Frameworks; and e. Indicator # 12 - Mutual Assessment of Progress.

46. Overall, the inputs were used efficiently considering that most of the sub-components were able to deliver more outputs as originally intended while keeping the total expenditures for consultancy inputs and workshops/trainings within the planned budget (actual of 94% vis-à-vis planned of 95%), as shown in Table 1. The adoption of implementation mechanisms (e.g. Department Orders, Circulars, etc) in implementing the outputs delivered by the TWGs and Consultant Teams also increased the likelihood of sustainability and mainstreaming within the processes of the GOP and the DPs.

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Table 6: Mechanisms Employed in Applying Good Practices on CD in TA Implementation

Good Practices in CD Mechanisms Employed in Support to Good Practices

1. Strong local ownership; local values are respected, self-esteem is fostered.

TA was implemented under the leadership of the GOP Harmonization Committee (HC) F

26 which conducted nine (9) meetings over the 26-month period of TA implementation.

All lead GOP TWGs/agencies of all components exerted strong influence determining and preparing the TOR as well as the direct supervision of their Consultants.

Workshops and consultation meetings were conducted by all the TWGs and Consultant Team thus, ensuring that ideas, knowledge and experience and skills of stakeholders and counterpart personnel were taken into account and subsequently integrated into the preparation of outputs.

2. Suitable positive incentives are present.

The TWGs were encouraged and prepared their respective work programs in partnership with the Consultant Team, including schedules and budgets, thus helping in the integration of TA activities into their regular activities and ensure the delivery of outputs and achievement of objectives.

Adequate financial and logistic support were provided for workshops and consultation, even in location outside the office, thus, encouraging the counterpart personnel and stakeholders to participate and actively contribute in the discussions and preparation of outputs.

3. Use is made of existing capacities; external inputs are integrated with national priorities, processes, and systems.

a. TWGs were organized composed of regular technical personnel as counterparts of the Consultant Teams thus, ensuring that the outputs were relevant to the objective of strengthening the needed country systems, e.g. procurement, PFM, performance-based budget, social (GAD & LAR) and environment (EIA) safeguards.

b. Available national/domestic Consultants, with relevant experience and qualifications, were mobilized in providing technical assistance in strengthening the country systems and in the overall management of the TA.

c. It was clear to all the TWGs and Consultant Teams that the objective of the TA was to strengthen the country systems covered under the TA and thus, these systems were not bypassed but were strengthened.

4. Imported models are adapted to local

The learning-by-doing approach was applied in establishing capacities of agencies in refining frameworks that were tried in other countries such as performance-based budget processes using the Organizational Performance indicator Framework (OPIF) and other systems.

In the case of land acquisition and resettlement (LAR), the LAR-TWG attempted to develop methodologies that took into account the “capacity to pay” of beneficiaries on the land valuation of government lands for housing and resettlement and also prepared the LAR/IR Roadmap in comprehensively addressing the interrelated and complex issues affecting LAR/IR.

26 The HC is composed of the DOF (as Chair), the NEDA (as Co-Chair), with DBM and COA as members.

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Good Practices in CD Mechanisms Employed in Support to Good Practices 5. Driver for change and reform leader present.

The TWGs prepared action plans as their specific response to the challenge of further strengthening the country systems and in mainstreaming the results orientation.

The TWGs role in preparing the work program and the direct supervision of Consultants, fully supported by ADB and GOP, demonstrated the resolve of GOP and ADB in supporting the pursuit of meaningful reforms while at the same time persistently working towards the delivery of all the outputs (with more outputs beyond the original expectations, as indicated in the output and outcome matrix).

6. Sequencing is appropriate.

The conduct of the Stocktaking Workshop during the early part of the implementation (April 2006) and the TWG Assessment Workshop (September 2006) provided opportunities to all the TWGs of components to determine the priorities in strengthening the country systems and mainstreaming the results orientation.

Consultation meetings and capacity building workshops were then undertaken by the TWG to improve the agencies capacity in carrying forward the needed reforms (e.g. procurement, environment, GAD, etc) that were compatible with their respective institutional environment.

7. Partnership and engagement are strong.

Strong partnership was established under the leadership guidance of the GOP Harmonization Committee (HC) with the support of the TWGs, Consultant Teams, ADB TA Team and the DPs in strengthening country systems and in mainstreaming results orientation.

Open and transparent information exchanges strengthened the partnership through emails, text messages and face-to-face meetings.

Development partners also carried joint efforts with the GOP on various concerns related to Paris Declaration.

8. The project is accountable to beneficiaries.

The TA was implemented mainly by the GOP agencies with the support of ADB and other DPs in the context of mutual accountability.

Accountability in the delivery of outputs and achievement of outcomes was clearly established through the agreed work programs prepared by each of the GOP TWG and their respective Consultant Teams (that were directly working and supervised by the GOP/TWGs).

Key stakeholders were directly engaged by the TWGs through consultation meetings and workshops. At the policy and oversight level, two (2) representatives of the CSOs are members of the 10-member National Reference/Advisory Group on the Paris Declaration (other members include 5 from the GOP and 3 from the DPs).

BMajor Lessons Learned 47. While the TA initially encountered start-up delays, mainly due to time and

adjustments needed in defining the scope and complementation of components in relation to other technical assistance, most of the outputs were

21

delivered within the original timeframe. The major lessons learned that facilitated the delivery of outputs and achievement of outcomes, are indicated below.

BOwnership of TOR and Work Program by GOP Technical Personnel

48. The ownership of TOR and work program by the GOP technical personnel enhanced the effectiveness of TA inputs (consultants & funds, etc.) in delivering outputs and achieving outcomes even with short duration of interventions (about 6 months). The TWGs in GOP Agencies had full participation in the ff: preparation of draft TORs and in the recruitment of the Consultants, preparation and updating of work programs which is used as reference in the implementation, and supervision of the Consultants’ inputs and the subsequent review of outputs;

49. This approach greatly helped in accomplishing all the outputs of the TA

including the preparation of the Procedural Manual on EIA and Land Valuation Manual which started only on the 2nd year of TA implementation due to the interface of these 2 components with the Assessment Report preparation undertaken by RETA on Strengthening Country Safeguards during the 1st year of TA implementation.

BSupport of Senior Officials

50. The support of senior officials in developing guidebooks and in conducting capability building interventions ensured the sustainability of the utilization of TA outputs even after TA completion, as shown below:

a. Nationwide application of the Streamlined EIA Procedural Manual on all

projects by the EMB/DENR with the support of a DENR Memorandum Circular (August 2007) implementing the EIA Manual developed by the EMB TWG and EIA Consultant Team;

b. Enhancement of the Harmonized GAD Guidelines (2nd Edition) through the

development of sectoral GAD Checklist developed by the GAD TWG and Consultant Team and adopted by the ODA GAD Network and the GOP in accessing the GAD responsiveness of projects of 16 Development Partners (December 2007);

c. Development of Procurement Manual for LGUs which specifically

addressed the distinct institutional set-up at the LGU level (relative to the national agencies). This was validated by LGU Officials and approved by the GPPB (November – December 2007). In relation, the methodology on procurement training effectiveness was also developed; and

d. Development of Land Valuation Methodology to facilitate valuation of

government lands intended for socialized housing and resettlement with

22

possible support through a Joint Memorandum Circular supported by NHA, PCUP, DENR, DILG, DOF and HUDCC (January – February 2008).

BBroad Stakeholders’ Consultation

51. Broad stakeholders’ consultation with patience and willingness of agencies to integrate the operational requirements of partner GOP agencies (e.g. LGUs) ensured that process improvements were appropriate and improved the country systems, such as those listed below. The key stakeholders were involved in the conduct of activities and preparation of outputs of various components through focused group discussion (FGDs), consultation meetings, Trainors’ Training, pilot-testing of methodologies and validation workshops, among others, such as the following:

a. EIA Procedural Manual (with GOP/NGAs, LGUs, Industry Groups & DPs); b. Harmonized GAD Guidelines (DPs, NGAs at National and Regional

Levels); c. Procurement Manual for LGU (DPs, LGUs, Regional Trainors); and d. Land Valuation Methodology for Government Lands for Socialized

Housing and Resettlement (GOP Agencies, Communities, etc).

BLead Role Carried Out by GOP Agencies in Avoiding Duplication

52. Lead role carried out by GOP agencies to avoid duplication of complementary support of Development Partners in improving country systems, such as those listed below. a. GPPB-TSO - in maximizing the synergy of technical assistance from ADB,

JBIC and WB in the adoption of the Generic Procurement Manual (GPM) and the Procurement Manual for LGUs and the upcoming upgrading of the Philippine Government Electronic Procurement System (PhilGEPS) with the upcoming support of ADB (Korean Fund) and WB (IDF);

b. EMB/DENR - in ensuring complementation of technical assistance from

ADB and WB in streamlining the EIA Process and possible support from CIDA on rationalizing the complementation of a project-based EIA with programmatic-approach Strategic Environmental Assessment (SEA); and

c. DBM - in managing the cascading of the Organizational Performance

Indicator Framework (OPIF) with technical assistance support of ADB, AusAID and GTZ in institutionalizing a performance-based budget process.

BKey Ownership and Leadership of the GOP Through the Inter-Agency Harmonization Committee (HC)

53. Key ownership and leadership of the GOP through the inter-agency Harmonization Committee (HC) orchestrated the preparation of the GOP

23

Harmonization Agenda as well as the tracking and reporting of key indicators to the Paris Declaration (baseline and annual assessment) to ensure coherence of interventions towards improving aid/development effectiveness.

BParticipation of ADB Sector Focal Persons, in supporting the PhCO TA Team

54. Participation of ADB Sector Focal Persons, in supporting the PhCO TA Team, through the provision of guidance and comments during the planning and implementation of component activities as well as adequate administrative support from the ADB PhCO TA Team in the conduct of activities by the TWGs and the Consultant Teams which facilitated the delivery of outputs;

BJoint Annual Consultation Meetings of the GOP and Development Partners (DPs)

55. Joint annual consultation meetings of the GOP and Development Partners (DPs) served as the venue in presenting the priorities of the GOP and the complementation of efforts being carried out the DPs.

BRecommendations and Follow-up Actions 56. The TA has laid the foundation in strengthening the country systems and

processes towards reducing transaction costs of development projects, programs and policies. The GOP/TWGs have indicated their respective priority follow-up activities during the 21 February 2008 Joint GOP-DP Consultation Meetings as highlighted in HAppendix N as well as in HAppendix Q (indicated in its last column).

57. To sustain the gains achieved by the GOP, so far, the following summary

recommendations and follow up actions are being proposed:

a. Pursue advocacy work to generate more support from the Development Partners in using the strengthened and streamlined country systems;

b. Pursue further efforts in linking the eNGAS and eBudget that will further

streamline and facilitate tracking and reporting of performance;

c. Provide continuing support and technical assistance in further improving the capabilities of agencies, including the government-wide implementation of performance-based budget process using the OPIF;

d. Continue the annual reporting of key performance indicators (by GOP and

DPs) on the achievement of outcomes of projects, programs and policies as well as on the commitments to the Paris Declaration on Aid Effectiveness; and

24

e. Solicit support from key stakeholders (e.g. Congress, CSO, private sector) on wider adoption of Managing for Development Results (MfDR) and Results-Based Monitoring and Evaluation (RBME) as support mechanisms in improving aid effectiveness and the achievement of MDG targets in the Philippines.

General Plan: Implementation Approach Report A-1

Appendix A - BGeneral Plan: Implementation Approach Report

Implementation Approach Report F

27

Overview The Technical Assistance for Harmonization and Managing for Results (TAR: PHI 35166) to the Government of the Philippines (GOP) was approved by the Board of the Asian Development Bank (ADB) last November 2005. The TA will be implemented by ADB-Philippine Country Office (PhCO) and the GOP, mainly by the DOF, NEDA, DBM & COA as well as DENR and other GOP agencies, until September 2007. The purpose of this report is to present the progress to date as well as the general direction that the TA activities will pursue within the next 16 months. It draws mainly from the discussions during initial consultation meetings as well as the two workshops that were conducted for stocktaking and harmonization. This Report highlights the activities undertaken and the outputs delivered during the past 2 months (March & April 2006) that were pursued by the GOP agencies, the ADB as well as other Development Partner Agencies.

Scope of Work The consultant will primarily assist DOF, NEDA and ADB in the overall management on the implementation of the four (4) parts of the TA (Appendix A.1 – Design and Monitoring Framework), namely: (a) Support to the Overall Harmonization Agenda (DOF, NEDA & ADB); (b) Procurement and Financial Management and Audit (DBM, COA and DOF); (c) Managing for Results: Strengthening the Quality of Performance-based Budget Process (DBM); and (d) Improving Project Quality at Entry (DENR, NEDA & UARPMO). The detailed tasks needed, as indicated in the Terms of Reference (TOR), are as follows:

1. Oversee the overall implementation, coordination and reporting requirements

of the various agencies/ADB; 2. Provide technical and administrative support on the overall management in

the implementation of the technical assistance (TA) through the following: (a) drafts the general work program of the major activities of the whole TA; (b)

27 This Report was prepared by Mr. Ramon Noriel B. Sicad, Project Management Expert, under ADB ‘s

Technical Assistance on Harmonization and Managing Results to the Republic of the Philippines. Inputs to this Report were generated from consultation meetings and workshops involving GOP officials and personnel, ADB Staffs as well as those from other Development Partner Agencies and from the Results-Based Management Expert of this TA.

General Plan: Implementation Approach Report A-2

coordinates with the GOP and development partner agencies’ 28 focal persons in the planning and implementation of harmonization activities; (c) drafts monthly reports on the status of the Harmonization TA; (d) assists the HC in assessing the overall progress of TA implementation; and (e) assists the HC in resolving various concerns among the various components of the TA, in close coordination with the focal persons.

3. Coordinate discussions between and among Government and Development

Partners on the possibility of harmonizing development planning, strategy formulation, programming, monitoring and other important areas through the following: (a) coordinates with focal persons of member-agencies of HC and Development Partners on the preparations and conduct of major meetings and undertakings requiring the participation of all GOP and Development Partner Agencies; (b) coordinates with focal persons on the work program and schedules of Component-specific activities; and (c) assess the progress of implementation for each of the component, in close coordination with component-specific focal persons.

Management of the Technical Assistance

The implementation of the TA will be carried out through a participative manner with the active involvement of the GOP agencies (with DOF as the Executing Agency) and the ADB through the Philippine Country Office (PhCO). The participative approach will ensure greater ownership of the GOP, through the participating agencies, on the implementation of the TA and the delivery of outputs that would be supportive to harmonization and managing results. The management of this TA would be geared towards identifying and resolving (i) generic issues affecting the harmonization agenda (including policy, legal, regulatory and institutional aspects for the framework); and (ii) gaps between the Government’s and major partners’ processes that inhibit alignment. It will seek recommendations that will yield “quick gains” on the country-level components and tasks related to the harmonization initiatives. F

29 The ADB-PhCO, through the designated ADB Project Officer and assisted by a Project Management Expert F

30, provides support in the implementation of TA activities. The conduct of TA activities and the delivery of outputs are being 28 Initial partners taking active role on specific areas for harmonization are as follows: (a) WB on

environmental safeguards (and procurement reforms); (b) AusAID-Philippine Economic Governance Reform/Facility (PEGR) on Results-based Management (RBM); and JBIC on Land Acquisition and Resettlement (LAR).

29 As indicated in the last sentence on the 3rd paragraph of the TA document. 30 The Project Management Expert has an allocated input of 12 person-months and to be intermittently

deployed during the during the project implementation period of 18 months (until August 2007). He will report to the implementing agencies and the ADB-Philippine Country Office (PhCO), particularly to Mr. Joven Balbosa of ADB/PhCO and Undersecretary Roberto Tan of the Department of Finance (DOF).

General Plan: Implementation Approach Report A-3

carried out under the supervision of the Harmonization Committee (HC) of the GOP composed of senior officials from the DOF, NEDA, DBM and COA and coordinated by the HC Secretariat (under the DOF). The supervision of Consultant(s) and other TA resources needed for the delivery of outputs for each of the Parts of the TA would be handled directly by the implementing agencies for each of the Parts. The use of TA resources would be based on a work program of the GOP agency and agreed upon by the HC and the ADB. Regular reports, at least quarterly, would be prepared by the lead agencies for each of the Parts of the TA with inputs from their respective Consultants. The reports would be submitted to the HC-Secretariat and to ADB-PhCO.

Approach and Methodologies The identification of areas for possible “quick gains” would be the general guiding principle in carrying out the TA on Harmonization and Managing Results. This approach will be pursued in order to maintain momentum of TA activities as well as encourage interface of GOP agencies with Development Partner Agencies in ascertaining the utility of outputs of the TA in supporting the GOP and achieving the objectives of Paris Declaration on Aid Effectiveness. The identification of the priorities would consider the following:

The outputs of each component would be assessed, in coordination with the GOP Lead Agency, relative to its degree of harmonization and alignment to processes within the GOP as well as those with the Development Partners; and

Complementation of activities and outputs would be pursued in relation to completed and ongoing initiatives of the GOP and DPs towards improving and streamlining processes in the implementation of projects, programs and policies.

The indicative work program on the overall implementation of the TA (Annex 2), prepared during the first month of the deployment of the Project Management Expert, was presented during the Inception and Stocktaking Workshop on April 20-21, 2006.

Major Activities Undertaken (March – April 2006)

1. Assistance provided in the preparations and conduct of the 20 March 2006 Joint GOP-Development Partners’ (DP) Meeting on Harmonization;

General Plan: Implementation Approach Report A-4

2. Assistance provided in the preparations and conduct of the 20-21 April 2006 Stocktaking Workshop;

3. Assistance provided in the drafting of preliminary TORs of Consultants, in coordination with the focal persons in GOP Agencies and ADB; and

4. Participated in coordination meetings with GOP agencies involved in the TA as well as with key focal persons at ADB.

General Plan: Implementation Approach Report A-5 (Design and Monitoring Framework)

Appendix A.1 - BDesign and Monitoring Framework

DESIGN AND MONITORING FRAMEWORK

Design Summary

Performance Targets/Indicators

Data Sources/Reporting Mechanisms

Assumptions and Risks

Impact • Improved development effectiveness,

reduced transaction costs leading to higher levels of public investments, and poverty reduction through improved processing and implementation of development programs

• More resources and budget

allocated to pro-poor public investments; lower or no attrition of proposed projects; and improved implementation of development projects

• Government growth and ODA

statistics; ADB project monitoring reports

• Assumption: Full

commitment of Government and development partners

Outcomes • Part A. Sustainable implementation of

the Paris Declaration at the country level

• Part B. Improved and harmonized

Government and development partners procedures and guidelines for procurement, financial management, and audit

• Part C. Strengthened performance-

based budgeting and increased capacities of DBM to mainstream performance-based budgeting processes (OPIF) and to facilitate processes to strengthen the performance orientation of selected OPIF agencies

• Part D. Streamlined and improved

project processing procedures enhancing quality at entry of projects, especially in the areas of environment, gender, and LAR

• Harmonization action plan

and tracking mechanism functioning

• Speedier and more

transparent procurement procedures; financial management and audit guidelines

• Readiness assessment tool

for managing for development results at department level tested and results-based management (RBM) tools for improving organizational performance developed and tested in 2 pilot departments

• Capabilities of DBM and

department officials to apply RBM readiness assessment and management tools in line departments strengthened

• Revised and easier guidelines

on LAR and environment completed and implemented; gender guidelines institutionalized in all agencies.

• Department reports on

implementation of action plans, consultant report

• Progress reports on

implementation of harmonized procurement guidelines; completed financial management and audit guidelines and progress reports on implementation

• Write up of process for DBM

internal guidelines • Documentation of involvement

of DBM and department officials in pilot assessments

• Assumption:

Government agencies' continued commitment and action on the agenda

Outputs

General Plan: Implementation Approach Report A-6 (Design and Monitoring Framework)

Design Summary

Performance Targets/Indicators

Data Sources/Reporting Mechanisms

Assumptions and Risks

Part A • Government’s achievements on

harmonization, harmonization action plan, and monitoring framework

Part B • Report on the rollout of generic

procurement manuals and the professionalization program for procurement practitioners

• Assessment of the compliance of

NGAS with international accounting standards

Part C • Training manuals for agencies;

workshops on EERs and OPIF; manual on output-focused MFOs

Part D • Report on identifying the gap in the

EIA between the Government and development partner systems; capacity building to EMB

• Workshops and training on GAD

guidelines; standardized manual in applying GAD guidelines in project preparation and evaluation

• Report on proposed amendments to

RA8974, with explanations; draft IRR; advocacy plan for the amendments to RA 8974

• Accomplishments, action

plan, and monitoring framework prepared

• Actual reports submitted by

consultants; training materials completed; no. of actual training sessions conducted

• Assessment completed • Information disseminated;

training conducted; training manuals completed; workshops conducted

• Report completed • Report completed; workshops

and training conducted • Report completed; IRR

drafted; advocacy plan prepared

• Technical assistance, Paris

Declaration, HC agenda • DBM's and development

partners' progress reports; technical assistance; agency's existing resources

• Technical assistance,

agencies' existing procedures, related circulars and manuals of COA and IAS

• Technical assistance; DBM and

NEDA's existing guidelines on EER and OPIF

• Technical assistance; DENR's

existing guidelines • Technical assistance; GAD

guidelines • Technical assistance

• Assumption:

Government's commitment to reforms, availability of technical assistance, and Government's contribution

Activities with Milestones Part A - Support to the Overall Harmonization Agenda (Nov 2005-Jan 2006)

1. Conduct stocktaking of Government’s achievements in the area of harmonization.

2. Formulate a monitoring framework and harmonization action plan.

3. Provide technical and administrative support to HC in implementing harmonization efforts.

4. Assist the Government in formulating and executing its advocacy and dissemination plan.

5. Provide support on overall management of the TA. (Part of phase 2: Jan 2006–Sep 2007).

Part B.1 - Procurement (Jan 2006–Sep 2007)

Inputs • Domestic consulting

services – 2 consultants (5 and 12 person-months each)

• Reports • PMU operating costs • Contingencies • Local travel • International consulting

services – 1 consultant (6

General Plan: Implementation Approach Report A-7 (Design and Monitoring Framework)

Design Summary

Performance Targets/Indicators

Data Sources/Reporting Mechanisms

Assumptions and Risks

1. Conduct rollout of the generic procurement manuals to regions through the Government Procurement Policy Board (GPPB) regional trainors.

2. Assist DBM through GPPB on the rollout of the Professionalization Program for Procurement Practitioners. The GPPB has developed a Professionalization Program which is a complete career course for procurement practitioners. The next phase of the project includes developing the syllabus and the examination for certification purposes, and extending the Project in the regions by training trainors to enable them to effectively roll it out within their respective regions.

Part B.2 - Financial Management and Audit (Jan 2006–Sep 2007)

1. Assess the extent of compliance of NGAS with IAS, and other relevant accounting standards.

2. Review possible mechanisms to harmonize the NGAS with other agencies’ systems such as DBM’s E-Budget and systems of other agencies, such as the e-LGU project of the Commission on Information and Communication Technology – National Computer Center (CICT-NCC).

Part C - Managing for Results (Strengthening the Quality of Performance-Based Budget Processes) (Jan 2006–Sep 2007)

1. Analyze the existing pilot OPIF experience and review the processes, including coordination with NEDA and COA, assessment of DBM and department’s baseline capacities.

2. Identify capacity development needs and address them on a selective basis.

3. Make available to 26 departments by February 2006 guidelines that reflect lessons learned from pilots; and support preparation of Congressional budget submission for 2007 for 26. agencies.

4. Assess leadership for strengthening managing for development results at department level by applying RBM readiness tool and identify demand for DBM support.

5. Define and support the installation plan of RBM tools in the two pilot departments.

6. Review pilots and make lessons learned available to other departments.

Part D - Project Quality at Entry (Jan 2006–Sep 2007)

Part D.1 - Environment

1. Study and assess the possibility of using DENR's environment impact assessment (EIA) in lieu of the various systems and requirements of the development partners (including ADB) for project assessment.

2. Provide capacity building for DENR's Environmental Management Bureau (EMB) on the use and appraisal of strategic/programmatic environmental assessment for sector programs and ODA-funded projects.

3. Conduct consultations (meetings, interviews) with development partners during TA implementation on the possible use of Government guidelines in project assessment.

person-months) • Domestic consulting

services – 1 consultant (6 person-months)

• Reports • PMU operating costs • Contingencies • International and local

travel • International consulting

services – 1 consultant (6 person-months)

• Domestic consulting services – 1 consultant (6 person-months)

• Reports • PMU operating costs • Contingencies • International and local

travels • International consulting

services – 1 consultant (2 person-months)

• Domestic consulting services- 2 consultants (3 person-months each)

• Training • Reports • PMU operating costs • Contingencies • International travels • Domestic consulting

services – 1 consultant (4 person-months)

• Reports • Training • PMU operating costs • Contingencies • Local travel • Domestic consulting

services – 1 consultant (3 person-months)

• Printing costs

General Plan: Implementation Approach Report A-8 (Design and Monitoring Framework)

Design Summary

Performance Targets/Indicators

Data Sources/Reporting Mechanisms

Assumptions and Risks

Part D.2- Gender and Development (GAD) 1. Assist in disseminating information on the GAD guidelines among development partners and within the Government through training and financial support for reprinting the guidelines.

2. Assess and provide technical assistance improving the institutional capacity at national and local government levels in applying the GAD guidelines in project preparation and evaluation.

Part D.3- Land Acquisition and Resettlement (LAR)

1. Review the achievements and limitations of RETA 5935 -National Resettlement Policy Enhancement and Capacity Building and provide specific recommendations on the needed actions to improve LAR practices in the Philippines.

2. Assist and coordinate in preparing mainstreamed IRRs, by providing technical, legal, and advocacy support in the form of studies, publications, workshops or media presentations that may be needed to successfully introduce the amendments to the law.

3. Assess the level of coordination existing between agencies with a role in LAR, and of their technical capacity and staffing needs for this task; and give recommendations for administrative changes and task organization, and outline the technical training and capacity building needed.

• Reports • Training • PMU operating costs • Contingencies • Local travel • Domestic consulting

services – 1 consultant (6 person-months)

• Reports • Training/advocacy • PMU operating costs • Contingencies • Local travel

ADB – Asian Development Bank; COA – Commission on Audit; CICT — Commission on Information and Communication Technology; DBM – Department of Budget and Management; EER – effectiveness and efficiency review; EIA – environmental impact assessment; EMB – Environmental Management Bureau; GAD – gender and development; GPPB – Government Procurement Policy Board; HC – Harmonization Committee; IAS – international accounting standards; IRR – implementing rules and regulations; LAR – land acquisition and resettlement; MFO – major final output; NCC — National Computer Center; NEDA – National Economic and Development Authority; NGAS – new government accounting system; ODA – official development assistance; OPIF – organizational performance indicator framework; PMU – project monitoring unit; RA – republic act; RBM – results-based management; RETA – regional technical assistance; TA – technical assistance

Appendix A.1 - General Plan: Implementation Approach Report (Indicative Work Program - April 2006) A-9

Appendix A.2 - BIndicative Work Program (April 2006)

Indicative Work Program GOP Harmonization Workshop

20 – 21 April 2006

Appendix A.1 - General Plan: Implementation Approach Report (Indicative Work Program - April 2006) A-10

Indicative Work Program GOP Harmonization Workshop

20 – 21 April 2006

Appendix A.1 - General Plan: Implementation Approach Report (Indicative Work Program - April 2006) A-11

Indicative Work Program GOP Harmonization Workshop

20 – 21 April 2006

Establishing GOP Ownership through Consultation: Highlights of Preparatory Meeting with COA B-1

Appendix B - BEstablishing GOP Ownership through Consultation: Highlights of Preparatory Meeting with COA

Highlights of the Preparatory Meeting with COA

8 March 2006; 10 AM – 12 NN 3/F COA Bldg.,

Commonwealth Avenue, Quezon City

Attendance

COA Assistant Commissioner Emma M. Espina COA Assistant Commissioner Carmela S. Perez Mr. Joven Balbosa – ADB PhCO Ms. Lirio T. Abuyuan – TA Consultant (RBM) Mr. R. Noriel B. Sicad – TA Coordinator (Project Management) F

31 Highlights

Mr. Joven Balbosa presented an overview on the TA and its various

components, including Financial Management and Audit;

Ascom Espina supported the inclusion of Financial Management and Audit as part of the TA on Harmonization, considering its possible contribution in improving efficiency in the auditing of foreign-assisted projects (FAPs) in various Government Agencies.

• At present, an Auditor has to conduct audit on FAPs using

different operating procedures and reporting requirements of each of the project and unique for each of the Development Partners.

• Harmonizing Donor Operating Procedures is a major concern of COA to facilitate the conduct of audits by the COA Auditors

• The NGAS has also a reporting system which will be reviewed and subsequently intended to meet also the reporting requirements of the Development Partners on the projects that they are supporting.

The 3 levels of harmonization was also noted at the start of the

meeting, namely: (a) Among ODA Partners; (b) At the country-level (GOP); and (c) Between ODA Partners and Country (GOP).

31 Drafted the Highlights of the Meeting as well as the initial revisions of the TOR on the Financial

Management and Audit, with both materials subject to review/concurrence of Mr. Joven Balbosa and COA Assistant Commissioners Espina and Perez

Establishing GOP Ownership through Consultation: Highlights of Preparatory Meeting with COA B-2

COA is working toward making NGAS as IAS compliant with the support of the COA Chairman, as indicated by both Assistant Commissioners Espina and Perez;

On the TA Document, the inclusion of the phrase “among others” at

the end of the 2nd Activity on the Financial Management and Audit (as indicated in page 8 of the TA document) was discussed and agreed during the meeting;

The addition of a 3rd Activity on the Financial Management and

Audit (page 8 of TA Document) the “Review of international best practices on Financial Management and Audit” was discussed and agreed during the meeting;

The inclusion of 2 major activities as part of the TA, particularly on

item (ii) of paragraph 11 on page 12 of the TA document was discussed and agreed during the meeting:

• Preparation of Manual/Guidelines on the Audit of Foreign-

Assisted Projects (FAPs) since COA has already started the drafting of a FAPs Audit Manual; and

• Conduct of Trainors’ Training on Auditing FAPs.

COA also proposed (and agreed during the meeting) that the Domestic Consultants will report directly to COA (instead to the International Consultant) and indicated in the revised section on page 13 of the TA Document;

The revisions/additions will be incorporated in the revised TOR

which will be reviewed and endorsed by COA as basis for the procurement of Consulting services;

Participation of COA to the upcoming events was also discussed

• 13 March 2006 Meeting of GOP/HC Agencies and ADB (COA

will be represented by Ms. Myrna Sebial/COA-DOF and Ms. Marrieta Lorenzo/COA-GAFMIS)

• 20 March 2006 (Pre-PDF) Joint GOP-DP Meeting on Harmonization

• 30-31 March 2006 Philippine Development Forum (PDF)

Coordination of COA with DOF and DBM be considered/clarified as part of the Financial Management and Audit considering their roles in overall Financial Management:

• DOF on revenue collection;

Establishing GOP Ownership through Consultation: Highlights of Preparatory Meeting with COA B-3

• DBM on budget and expenditures; and • COA of reporting and recording.

COA also explored the possibility of procuring 2 Domestic

Consultants to handle separately Audit and NGAS as well as on observing international best practices; and

The mobilization of domestic consultant(s) ahead of international

consultant was also discussed.

Concerns and Actions to be taken

The proposed revisions on pages 8, 12 & 13 were already incorporated in the revised sections of the TOR (and will form part of the Highlights of the Meeting);

COA will review and endorse the revised TOR as basis for

subsequent procurement of consulting services by the ADB under this component;

Timing on the deployment of Consultants will be determined by

COA and conveyed to ADB;

A small working group involving COA, DOF/BTr and DBM will be organized to ensure integration of concerns of all agencies in carrying out the harmonization efforts in the Financial Management and Audit in the GOP; and

COA will manage the actual implementation of this Component in

close coordination with DBM and DOF as well as with the support of ADB/PhCO.

Partnership for Results: Protocol in Procurement of Consultants and Ensuring Delivery of Outputs C-1

Appendix C - BPartnership for Results: Protocol in Procurement of Consultants and Ensuring Delivery of Outputs

Protocol in Procurement of Consultants and Ensuring Delivery of Outputs F

32 Process in the Updating of the Terms of Reference (TORs)

1. Discussion of the TOR, as indicated in the TA Document, with the Phase 1

Consultants (Results-Based Management & Project Management) with personnel of concerned agency(ies);

2. Preparation of Matrices on Tasks, Outputs, duration of activity, schedule

and extent of Consultant(s) inputs through workshop or small group discussions or both;

3. Revision of initial TOR based on the matrix prepared with inputs from the

concerned agencies on tasks to be undertaken using the allocated person-months specified in the TA document F

33;

4. Referral of validated TOR to the ADB focal persons, for review and comments;

5. Revision of the TOR integrating the inputs from the ADB focal persons;

6. Referral to the concerned agencies for the reconfirmation of the updated

TOR;

7. Upon reconfirmation of the updated TOR by the agency, proceed with the invitation of short-listed Consultants;

8. If case of further revisions, discuss with or refer to ADB focal persons on

changes suggested by the concerned agencies (as on Step #4). Process in the Hiring of Consultants for the TA

1. Validate TORs with concerned agencies with inputs from the ADB focal

persons;

32 As documented in 6 June 2006 33 A separate list of tasks and outputs being proposed by Agencies, requiring Consultant inputs greater than

those allocated under the TA, would also be prepared for presentation/consideration of the Harmonization Committee (HC), for review and possible referral for funding to other Development Partners.

Partnership for Results: Protocol in Procurement of Consultants and Ensuring Delivery of Outputs C-2

2. Solicit names of possible Consultants, from the concerned agencies as well as from the ADB pool of Consultants;

3. Ranking of Consultants by ADB-PhCO using the ADB processing of

scoring qualification and skills of Consultants;

4. Validation or concurrence on the short-listed consultants by the GOP (DOF & concerned agencies);

5. PhCO send invitation to 1st ranked Consultant indicating dates of possible

deployment

6. If 1st ranked Consultant is available, PhCO will advise ADB-COSO on the availability of Consultant for the latter to negotiate with Consultant on terms and condition of Engagement with the TA

7. If negotiation with priority Consultant would be successful, PhCO would

issue Notice to Proceed (NTP);

8. If Consultancy engagement could not be completed with the 1st bidder, the second ranked consultant (and so forth) shall be invited for their availability and subsequent negotiations with ADB-COSO.

Deployment of Consultants and Tracking of Progress

1. ADB-PhCO with DOF, NEDA and Concerned Agency handling the specific sub-component of the TA, will arrange a meeting together with the Consultant of Components;

2. Discussion on TOR of Consultants of component and other concerns

during the meeting in relation to the implementation of the TA;

3. Concerned agency personnel, with their respective Consultant, to update the TOR Matrix based on the agreements during the meeting, specifying the expected tasks, outputs, timing of inputs as well as other agreements reached;

4. Submission of the updated TOR matrix by the Concerned Agency and

their Consultant to the DOF/HC Secretariat (if possible, immediately after the meeting), as initial reference in tracking of outputs for each of the sub-component

5. Preparation of the work program for each of the subcomponent by the

counterpart personnel of the concerned agency(ies) and the Consultant,

Partnership for Results: Protocol in Procurement of Consultants and Ensuring Delivery of Outputs C-3

highlighting major workshops to be undertaken and estimated costs for workshops and related cost (manuals, etc);

6. Submission of work program by each of the Agency to the DOF/HC

Secretariat, copy furnished ADB-PhCO, about 2-3 weeks after the initial deployment of the Consultant(s);

7. Preparation of the Consultant Inception Report within the 1st 4 weeks of

deployment and submission of such Report by Concerned Agencies to DOF/HC, copy furnished ADB-PhCO;

8. Consultants to prepare and submit monthly report to their respective

agency for onwards to transmittal to the Harmonization Committee (HC), copy furnished ADB-PhCO; and

9. Agencies, with the assistance of their respective Consultants, will prepare

quarterly reports for submission to the Harmonization Committee (HC), copy furnished ADB-PhCO.

Consolidation of the Work Program and Reports by HC Secretariat

1. The submitted work program from each of the component would be consolidated by the HC Secretariat, with assistance from the Project Management Expert, highlighting the following:

a. The gaps to be addressed for each of the Component (or area of concern)

b. The schedule of activities for major events, c. The corresponding outputs for each of the events; d. The required budget for each of the outputs; and e. The lead Agency for each major event.

2. Prepare presentation/discussion materials for the HC on the following:

a. Consolidated work program to decide on the budget allocation for each of the subcomponent;

b. Prepare highlights on the Agreements Reached during the HC

Meeting; and c. Prepare quarterly update of the implementation of the TA based on

quarterly report submitted by each agency.

Promoting Interagency Teamwork: Highlights of HC-TWG Consultation Meeting D-1

Appendix D - BPromoting Interagency Teamwork: Highlights of HC-TWG

Consultation Meeting

HIGHLIGHTS OF 12 SEPTEMBER 2006 HC-TWG MEETING Consultation Meeting Harmonization TWG

12 September 2006 Participants: TWG members from COA, DBM, DENR (EMB/LMB), DOF (BLGF/IFG/NRTC), NEDA (AS/IS/PIS/SDS/PMS), UARPMO, ADB-PhCO, TA Consultants (PM/RBM) – total of 23 participants

1. Ms. Stella Laureano (DOF/HC Secretariat) welcomed the participants and

provided an overview on the purpose of the harmonization efforts of the GOP and the Development Partners.

Stocktaking Report 2. The Stocktaking Report was presented by Ms. Lirio Abuyuan (RBM

Consultant) highlighting the strengths and weaknesses of the harmonization efforts in the Philippines. The some items were raised and discussed during the open forum, as presented below.

a. Clarification on the results of the assessment that 34% of the

donor-financed projects used partner country’s procurement system. GPPB-TSO was not aware of such assessment/survey being undertaken. It was clarified that the result was from a global baseline survey and not solely on the Philippines. It was therefore, suggested that a similar assessment be conducted as part of the Action Plan on the procurement component

b. Suggestion that besides procurement, a similar assessment would

be undertaken in the following: (i) audit; (ii) M&E; (iii) reporting; and (iv) disbursement. The TWG agreed to include such assessment in the Action Plan.

c. There was also a query on the need for donor to donor alignment.

The suggestion would be explored by the development partners while the GOP efforts would focus on donor-country perspective.

d. There was also a suggestion for each of the TA component to

assess the country system relative to the burdens listed in the stocktaking report, such as the following: (i) donor driven priorities; (ii) difficulties with donor procedures; (iii) uncoordinated donor practices; (iv) excessive demands on time; (v) disbursement delays; (vi) lack of information; and (vii) demands beyond national capacity.

It was pointed out that capacity concerns could be one of the major burdens that needs to be addressed in the Harmonization Agenda.

Promoting Interagency Teamwork: Highlights of HC-TWG Consultation Meeting D-2

e. It was also noted that the same problems were encountered in

similar studies, even during the 1970s. There were discussions on the need for harmonization among donor agencies in order not to overburden the country systems.

Updates on the TA

3. An update on the TA was presented by Mr. Noriel Sicad (PM Consultant)

on the status on the major components of the TA on Harmonization and Managing for Results. Some of the items discussed are indicated below.

a. Clarification on the mechanics on the integration/complementation

of efforts of ADB TA, ADB RETA on Country Systems and WB Study on the EIA. It was explained (DENR/EMB) that the DENR Advisory Panel, with its TWG, instructed ADB & WB to coordinate their efforts and present their findings/recommendations to the DENR Advisory Panel & TWG.

b. On the deferment of activities on the cascading of the OPIF - It was

explained that complementary assistance are also being provided through the AusAID/PEGR thus, the need to work out the mechanisms on the interface of the ADB TA and the AusAID/PEGR before proceeding with the cascading the OPIF to the lower levels in 20 department/agencies.

Defining the clearer linkage between the assistance of both ADB TA and the AusAID/PEGR would avoid/minimize problems in the actual implementation stage of the TA.

HC Decisions on Next Steps

4. Ms. Cora Garcia (NEDA/HC Secretariat) presented the instructions given

by the HC during its meeting last 21 July 2006 (formalize institutional arrangements, firm-up monitoring framework and prepare/update the action plan). The discussion mainly focused on the instrument in formalizing the institutional arrangement – either through the MOU (preferred by HC) and the EO (as an option) and the plan of elevating the harmonization efforts to the DOF Secretary and possibly, with PGMA

The HC Secretariat/TWG will continue to refine the MOU for presentation to the HC. Arrangements could then be explored (by concerned agencies) to have the formal signing of the MOU in Malacanang.

Promoting Interagency Teamwork: Highlights of HC-TWG Consultation Meeting D-3

On Harmonization Agenda and Action Plan

5. Ms. Lirio Abuyuan presented some examples on the Harmonization Agenda using the approaches taken by Vietnam, WB & ADB. Ms. Stella Laureano (DOF/HC Secretariat) explained that the GOP has already an existing harmonization agenda on procurement and the current focus is on the area of public financial management (PFM). The discussion raised some points that have to be considered in finalizing the Harmonization Agenda as indicated below.

a. Clarifying what incentives are being pursued considering the (i)

declining ODA thus the need to take into account the need to improve effectiveness of whole public investment/expenditure (and not just of ODA); (ii) the same problems were identified as those in 1970s; (c) review of responsiveness of donor frameworks relative to problems/burdens encountered.

b. The need to continue to work on the five areas of harmonization in

the context of the Paris Declaration using TA and other facilities to support and pursue the Harmonization Agenda as well as improving capacity within the GOP.

c. The need to go beyond the (component) framework considering

that reforms are wide-ranging and involve the participation and support of a lot of agencies. PFM reforms involved COA, DBM and other agencies; Civil Service Reforms with CSC and other agencies, Performance Management with DBM, NEDA and other agencies, among others. Reforms will require adjustments in policies; systems and procedures thus, would have a wide-ranging effect.

d. The MOU could serve as the “umbrella” in orchestrating the

harmonization efforts but should be balanced to ensure that it would not become too restrictive or limited (in terms of its membership) that affect its effectiveness in pursuing policy and related reforms.

Workshop on Monitoring Framework & Action Plan

6. GOP harmonization objective defined as – “Development assistance

made more efficient, effective, responsive and results-oriented” 7. Clarifications were raised of defining GOP Harmonization objective

relative to the TA implementation. It was clarified that component of the TA could proceed (based on the objectives in the TA document) while the GOP Harmonization objective is on a broader perspective that will serve as the basis in identifying gaps and strengths.

Promoting Interagency Teamwork: Highlights of HC-TWG Consultation Meeting D-4

8. It was also suggested that the harmonization efforts would also cover

other areas of project implementation.

9. On the procurement, the policies and procedures are presently acceptable to both the GOP and DPs in the areas of ownership (with procurement law), alignment (with open competition, transparency) as well as in harmonization. Though, there are still areas that need to be harmonized such as on the approved budget of contracts. Considering the advance stage of harmonization in procurement, a clarification was raised up to what extent it should be further harmonized.

10. The Public Financial Management (PFM) is another major area for

harmonization in such areas as the role of private auditors, financial management and financial reporting, with some initiatives started way back in 2003.

The subsequent activities on the PFM involving other agencies (such as COA and DBM) may require the help of the HC and thus the need to connect all the initiatives from other areas in the PFM. The different formats in the audit of projects could be an area that will also require the integration of reports.

11. A clarification on the use of TA resources in the complementation activities

was also raised relative to other related activities. In the case of the ADB TA and ADB RETA, it was explained (PM Consultant) that the joint activities are being pursued by the TA and the RETA on the preparation of the Assessment Report, through a Domestic Consultant with inputs from International Consultants. It was also clarified (TWG LAR) that the Assessment Report (expected end of October 2006) would then serve as the basis in moving forward with the harmonization agenda of the LAR TWG.

It was noted that joint activities could be pursued by the TA in relevant areas supportive to the objectives of the TA and in consultation/advance notice with the DOF, as the executing agency.

12. In handling the concern on the extent of harmonization and alignment (on

procurement as well as PFM as well as in other areas) relative to the international standards, the following approaches were suggested (based on the experiences in procurement reforms) :

a. Start the negotiation in areas with similar or common approaches; b. In case of minor differences, agree on thresholds (such as those in

PBD) where GOP systems will apply; and

Promoting Interagency Teamwork: Highlights of HC-TWG Consultation Meeting D-5

c. Address areas with divergent policies only after the common areas and less problematic areas were already resolved.

The TWG agreed that approach would serve as the guide in the discussion with the DPs in working towards harmonization and alignment of policies and procedures.

Appendix B - Integration of Parallel Initiatives: Highlights of Meeting with DENR/EMB Personnel E-1

Appendix C - on the Complementation of TA and RETA Activities

Appendix E - BIntegration of Parallel Initiatives: Highlights of Meeting with DENR/EMB Personnel on the Complementation of TA and RETA Activities

Highlights of Meeting with DENR/EMB Personnel on the Complementation of TA on Harmonization and RETA on Strengthening Country’s Safeguards

22 May 2006 2 PM at EMB Office, DENR, Visayas Avenue, Quezon City

Participants: Ray Alcances, Pura Pedrosa and Jenny Gappe (DENR/EMB),Cheq Penalosa (DENR/FASPO) Joven

Balbosa & Jane Barcenas (ADB-PhCO) & Noriel Sicad (Consultant - TA on Harmonization)

1. Joven Balbosa (ADB-PhCO) explained the purpose of the meeting was on

the integration of the activities of the TA and RETA considering that both will be focusing on the EIA System and will be interacting with the EMB of DENR. The RETA though, would be covering 3 countries, including the Philippines.

2. Joven explained that the RETA will involve a National Consultant on

Environment and an International Specialist on Environment. The tasks of these Consultants, as indicated in the TORs, would be directly working on the EIA system, which is also the interest of the TA on Harmonization. As such, the TA and RETA would be complementing the resources in identifying the gaps and could cover more areas (identified during the workshop) towards improving and harmonizing the ADB and GOP System on the EIA. (Another National Consultant would be engaged under the RETA to look into Resettlement and Indigenous People).

3. On the query of the DENR/EMB about the hiring of Consultants for the

RETA and on the TA, Joven explained the International Specialist on Environment would be engaged under the RETA while the National Consultant would be engaged under TA. Thus, the selection of the National Consultant would consider the wider pool of National/Domestic Consultants combining the list generated under the TA and RETA.

4. The TOR of the National Consultant of the RETA was then reviewed and

compared with the TORs of the 2 Domestic Consultants for the TA – EIA Generalist and EIA Process Expert. The TORs on the TA were prepared in consultation with DENR and discussed with other GOP agencies during the GOP Harmonization Workshop last 20-21 April 2006.

5. The EMB/DENR personnel observed the TOR of the National Consultant

(RETA) would be able to cover the tasks indicated in the TOR of the EIA Generalist (TA) with just minor adjustments. They suggested however,

Appendix B - Integration of Parallel Initiatives: Highlights of Meeting with DENR/EMB Personnel E-2

Appendix C - on the Complementation of TA and RETA Activities

that another Domestic/National Consultant would be engaged to look deeper and review the operational side of the EIA Process in coordination with the National Consultant on the Environment as well as the International Specialist on Environment.

6. EMB/DENR emphasized the need to engage 2 Consultants with specific

focus on the EIA System at the macro level and the other to focus on the EIA process itself. Both Consultants would be working closely with the DENR/EMB providing support coordination while both would also be reporting to the ADB (as well as to the GOP Harmonization Committee).

7. Based on the previous consultancy engagements of EMB/DENR on

technical assistance working on the EIA System, it would be very difficult to find and ensure the quality of outputs, for a single individual Consultant to both cover the macro and micro aspect of EIA. Thus, they strongly requested for the services of 2 National/Domestic Consultants.

8. Joven indicated that he will provide feedback after further internal

discussions among ADB personnel working on the TA and the RETA.

24 May 2006

Aligning and Matching Scope and Resources: Using the Design and F-1 Monitoring Framework (DMF) in Ascertaining Scope on Procurement

Appendix F - BAligning and Matching Scope and Resources: Using the Design and Monitoring Framework (DMF) in Ascertaining Scope on Procurement

Improving and Harmonizing Procurement Guidelines DESIGN AND MONITORING FRAMEWORK

(DRAFT-integrating comments from GPPB-TSO) As of 22 September 2006

Design Summary Performance Targets/ Indicators

Data Sources/ Reporting

Mechanism Assumptions/ Risks

Impact Improved development effectiveness, reduced transaction costs through improved processing and implementation of development programs

Improved implementation of development projects (for locally, nationally and ODA funded projects)

• Government growth

and ODA statistics; • GOP Project

monitoring reports • ADB Project

Monitoring Reports

• Assumption: Full

commitment of Government and Development Partners

Outcome Improved and harmonized Government and development partners procedures and guidelines for procurement

• More transparent

procurement procedures and guidelines at NGAs, GOCCs & LGUs

• Speedier processing

on the procurement of civil works, goods and services

• Progress reports on implementation of harmonized procurement guidelines using the Agency Performance Indicator (API)

• Feedback Reports on

Effectivity of GPM Trainings

• Assumption:

Government agencies' (including LGUs) continued commitment and action on the agenda

Outputs Rollout of the generic procurement manuals to regions conducted through GPPB regional trainors for Local Government Units (LGUs) (and National Government) procurement personnel

Phase 1 (ADB TA) • Training Design and

Feedback Mechanism developed & field tested

• 250 Professional Training Kits prepared

• Simplified Procurement Guide and Training Modules for LGUs developed

Phase 2 (Other TAs/Sources) • ____batches of GPM

trainings organized for LGUs (and NGAs) procurement personnel (self-financed by respective LGUs)

• 2,000 GPMs

• Training Activity

Completion Reports • GPPB’s Progress

Reports • Technical assistance

Reports

• Assumption:

Government's (NGAs & LGUs) commitment to reforms, availability of technical assistance, and Government's contribution

• Assumption:

Funding for participation of NGA & LGU personnel in GPM trainings will be funded by their respective Agencies, as currently being practiced.

Aligning and Matching Scope and Resources: Using the Design and F-2 Monitoring Framework (DMF) in Ascertaining Scope on Procurement

reproduced • 1,000 Simplified GPM

for LGUs reproduced

• Simplified Procurement Guide and training modules for Barangays developed

• 1,000 Simplified

Procurement Guide for Barangays reproduced

Activities with Milestones Phase 1 (to be funded under the ADB TA on Harmonization) • Development of Training Design and Feedback Mechanism for the Roll-out

and Monitoring of the Effectivity of the Generic Procurement Manuals (GPM) Trainings and pilot testing by November 2006

• Pilot testing of Training Design and Feedback Mechanism on Effectivity of

GPM Trainings and Actual Field visits by December 2006 • Reproduction of Professional Training Kits for Government Procurement

Policy Board (GPPB) Authorized Trainors by November 2006 • Development of Simplified Procurement Manuals and Training Modules for

Local Government Units (LGUs) by Nov-Dec 2006 Phase 2 (proposed for funding from other sources or other Technical Assistance – ADB, JBIC, WB and other DPs) • Development of Simplified Procurement Guide for Barangays by January-

February 2007 • Reproduction of Generic Procurement Manuals (GPM) for distribution to

procurement personnel of government agencies by November 2006 – February 2007

• Reproduction of Simplified Procurement Manuals for LGUs by February-

March 2007

Inputs –ADB TA • 20 working days -

Domestic Consultant on Training (ADB TA HAR)

• Travel Funds for

Domestic Consultant during field testing (ADB TA HAR

• Funds for

reproduction of 250 Professional training kits (ADB TA HAR)

• Funds for 2 batches

of GPM trainings for LGU personnel (self-financed by participants’ office)

• 40working days -

Domestic consultant on Procurement (ADB TA HAR)

Inputs from funds of other TAs • 30 working days – 2

Domestic Consultants- 1 Procurement expert/ 1 graphic illustration artist

• Funds for

reproduction of

Aligning and Matching Scope and Resources: Using the Design and F-3 Monitoring Framework (DMF) in Ascertaining Scope on Procurement

• Reproduction of Simplified Procurement Guide for Barangays by February-March 2007

2,000 GPMs • Funds for

reproduction of 1,000 copies of Simplified GPMs for LGUs

• Funds for

reproduction of 1,000 copies of Simplified Procurement guide for barangays

Complementation of Various Technical Assistance Projects of Development Partners to the GOP G-1

Appendix G - BComplementation of Various Technical Assistance Projects of Development Partners to the GOP

Complementation and Support Matrix (DPs & ADB Units) 34

Areas on Harmonization Partner Entities Philippine

Commitment to the Paris

Declaration

Specific Actions to be Taken under the TA

(based on Action Plan prepared by TWGs)

Development Partner

Agencies

ADB Focal Units/

Counterparts

Respon-sible GOP

Agency

• Development of Feedback Mechanism for Monitoring Effectiveness of GPPB Training on Procurement

• World Bank, through its support in the Professionalization Program

• COS1 (Bob Rothery) GPPB/ DBM

• Preparation of Procurement

Manuals for LGUs

• World Bank and JBIC in their support to the preparation of the Generic Procurement Manual (GPM)

• CIDA with its support to

initial installation of the electronic procurement portal

• COS1 (Bob Rothery) • SEGF (Tariq Niazi)

GPPB/ DBM

1. Improved and

harmonized procedures and guidelines on Procurement

• Printing of 500 copies of updated version of the GPM

• Reproduction of 500 copies of Procurement Manual for LGUs

• World Bank and JBIC in their support to the preparation of the Generic Procurement Manual (GPM)

• COS1 (Bob Rothery) • SEGF (Tariq Niazi)

GPPB/ DBM

34 As defined in 27 April 2007

Complementation of Various Technical Assistance Projects of Development Partners to the GOP G-2

Areas on Harmonization Partner Entities Philippine

Commitment to the Paris

Declaration

Specific Actions to be Taken under the TA

(based on Action Plan prepared by TWGs)

Development Partner

Agencies

ADB Focal Units/

Counterparts

Respon-sible GOP

Agency • Areas for harmonization at

three levels identified and prioritized

• Standardize/simplify forms to address oversight and line department requirements.

• RSCG (Kathleen Moktan)

COA 2. Improved and

harmonized procedures and guidelines Financial Management & Audit

• Guidelines on the audit of foreign-assisted projects drafted/ piloted and finalized for adoption.

• COA personnel trained on audit of foreign-assisted projects.

• World Bank & JBIC through the preparation of a common agenda for harmonization way back in 2003

• AusAID, CIDA, JBIC, WB

& USAID through their participation in the GOP-DPs Consultation Meeting on PFM harmonization (March 2007)

• RSCG (Kathleen Moktan)

COA

• Assessment Report on NGAS & e-NGAS on IAS compliance

• World Bank & JBIC through the preparation of a common agenda for harmonization way back in 2003

• RSCG (Kathleen Moktan)

COA

Complementation of Various Technical Assistance Projects of Development Partners to the GOP G-3

Areas on Harmonization Partner Entities Philippine

Commitment to the Paris

Declaration

Specific Actions to be Taken under the TA

(based on Action Plan prepared by TWGs)

Development Partner

Agencies

ADB Focal Units/

Counterparts

Respon-sible GOP

Agency • AusAID, CIDA, JBIC, WB

& USAID through their participation in the GOP-DPs Consultation Meeting on PFM harmonization (March 2007)

• RSCG (Kathleen

Moktan)

COA

3. Strengthened performance-based budgeting processes using the Organizational Performance Indicator Framework (OPIF)

• Review and refine OPIF logframes and performance indicators in 20 departments/ agencies, cascading to attached agencies

• OPIF logframe construction

and development of performance indicators for rest of national government agencies

• World Bank with its support to MTEF

• AusAID through the

Philippine Economic Governance Reform (PEGR) Program

• RSCG (Claudia Buentjen)

DBM

4. Streamlined

and improved processing procedure and enhanced

• Preparation of the Assessment

Report on the EIA System

• World Bank through its EIA Study

• SEID (Yue-lang Feng) • RSES (RETA Team -

Ms. Xiaoying Ma) • SPU on ADB Policy

Updates

ADB RETA Team

DENR/ EMB

Complementation of Various Technical Assistance Projects of Development Partners to the GOP G-4

Areas on Harmonization Partner Entities Philippine

Commitment to the Paris

Declaration

Specific Actions to be Taken under the TA

(based on Action Plan prepared by TWGs)

Development Partner

Agencies

ADB Focal Units/

Counterparts

Respon-sible GOP

Agency Project Quality at Entry - Environment

• Development of IEC Material for different stakeholder groups

• Development of Interactive

(EA) Query System on the ECC application and processing

• Development of Project

Planning Info Support System for EA

• CIDA through exploratory meeting with DENR/EMB on possible areas for technical assistance

• SEID (Yue-lang Feng) • RSES (RETA Team)

DENR/ EMB

5. Streamlined

and improved processing procedure and enhanced Project Quality at Entry - Gender & Devt (GAD)

• Conduct training workshops on the use of the Harmonized GAD Guidelines for project development, implementation and M&E

• Revision and printing of

updated Harmonized GAD Guidelines

• CIDA through its support in preparing the 1st Edition of Harmonized GAD Guidelines

• ODA GAD Network

through the regular consultation meetings

• SESS (Ms. Anupma Jain)

NEDA with

NCRFW

6. Streamlined

• Preparation of the Assessment Report on the LAR system

• World Bank with its previous study on assessing LAR

• CWID (Lanfranco Blanchetti-Revelli

ADB RETA Team

Complementation of Various Technical Assistance Projects of Development Partners to the GOP G-5

Areas on Harmonization Partner Entities Philippine

Commitment to the Paris

Declaration

Specific Actions to be Taken under the TA

(based on Action Plan prepared by TWGs)

Development Partner

Agencies

ADB Focal Units/

Counterparts

Respon-sible GOP

Agency System in the Philippines

• RSES (RETA Team – Ms. Xiaoying Ma)

• SPU on ADB Policy

Updates

and improved processing procedure and enhanced Project Quality at Entry – Land Acquisition & Resettlement (LAR)

• Harmonize land valuation procedures and select/design appropriate market-based land valuation methods for land acquisition and resettlement (LAR)

• Inform stakeholders on

importance of market-based land valuation techniques on LAR

• AusAID through the

Land Adminstration and Management Project (LAMP)

• RSCG (Kathleen

Moktan) • RSES (RETA Team -

Ms. Xiaoying Ma))

HUDCC/ Urban Asset Group

Looking Ahead to Frontline Service Delivery: LGU-Related Linkages of the TA on Harmonization H-1

Appendix H - BLooking Ahead to Frontline Service Delivery: LGU-Related Linkages of the TA on Harmonization

Effective Donor/ODA Coordination at the Local Government Level Support Activities to LGUs Conducted 35

Part B:

Procurement and PFM Part C:

Managing for Results

Part D: Improving Project Quality at Entry

Four Linkages for Institutional

Building (Esman, 1967; Blaise, 1973)

Part A: Overall Support to

Harmonization (DOF/NEDA) Procurement

(GPPB-TSO) PFM (COA)

OPIF (DBM)

EIA (EMB/DENR)

GAD (SDS/NEDA w/

NCRFW)

LAR (HUDCC & Interagency

TWG) 1. Enabling linkages - development of relationship with other entities that control the allocation of authority and resources that the institution needs

Philippines: Local Government Code of 1991; Public Expenditure Management (PEM) Reforms;

Results Monitoring and Evaluation

International: Paris Declaration on Aid Effectiveness; Managing for Development Results

2. Functional linkages - the institution in relation to organizations which are complementary in the productive sense as well as with organizations which constitute real or potential

Support to overall implementation of the TA including the participation of LGUs in improving aid effectiveness and managing for

More responsive Generic Procurement Manual (GPM) for LGU being developed with inputs from LGU Officials & Personnel (through 8 FGDs nationwide)

Integration of LGU concerns in the refinements of the NGAS & e-NGAS as well as on the Auditing of FAPs, including those implemented by

Cascading of the Organizational Performance Indicator Framework (OPIF) being implemented among national government agencies as a tool in

Partnership of the EMB/DENR & the LGU as a basic premise in the implementation of the streamlined EIA Process

Harmonized GAD Guidelines already approved and adopted by the GOP and the ODA GAD Network as part of the main consideration in development

Social Safeguards as one the main concerns requiring the support of all stakeholders including the LGUs

35 As defined in 02 October 2007

Looking Ahead to Frontline Service Delivery: LGU-Related Linkages of the TA on Harmonization H-2

Part B: Procurement and PFM

Part C: Managing for

Results Part D:

Improving Project Quality at Entry Four Linkages for Institutional

Building (Esman, 1967; Blaise, 1973)

Part A: Overall Support to

Harmonization (DOF/NEDA) Procurement

(GPPB-TSO) PFM (COA)

OPIF (DBM)

EIA (EMB/DENR)

GAD (SDS/NEDA w/

NCRFW)

LAR (HUDCC & Interagency

TWG) competition development

results LGUs performance-

based budgeting projects

3. Normative linkages - sociocultural norms & operating rules & regulations which have important implications as obstacles or facilitators in the process of institution building

Trainors’ Training Effectiveness Methodology developed to improved delivery of training to procurement personnel of LGUs and other government agencies

Manual on the Auditing of FAPs being developed

OPIF Manual being prepared OPIF for LGUs targeted by DBM to start in 2008

Streamlined EIA Procedural Manual was subjected to LGU review as well as with NGAs, NGOs & Industry Groups for comments and suggestions

Trainors’ Training on the use of the Harmonized GAD Guidelines conducted with participants from key regional agencies, SUCs and NGOs; 2nd Edition of the Harmonized GAD Guidelines prepared as reference in the preparation, implementation and M&E of development projects by Government Agencies, including the LGUs

Manual on Land Valuation Methodology for housing and resettlement being pilot tested which also be useful to the LGUs; LAR Roadmap being drafted which will include the roles and responsibility of the “sending LGUs” and “receiving LGUs” in the relocation of affected families

Looking Ahead to Frontline Service Delivery: LGU-Related Linkages of the TA on Harmonization H-3

Part B: Procurement and PFM

Part C: Managing for

Results Part D:

Improving Project Quality at Entry Four Linkages for Institutional

Building (Esman, 1967; Blaise, 1973)

Part A: Overall Support to

Harmonization (DOF/NEDA) Procurement

(GPPB-TSO) PFM (COA)

OPIF (DBM)

EIA (EMB/DENR)

GAD (SDS/NEDA w/

NCRFW)

LAR (HUDCC & Interagency

TWG) 4. Diffused linkages - relationship between the institution and the public opinion and with the public in general

Agency Performance Indicator (API) for LGU on Procurement to be developed to help promote transparency and as reference on LGU performance; Need for more capacity building support to LGUs on the Procurement Process

Need for more capacity building support to the implementation of the New Government Accounting Standards (NGAs) as well as in Auditing

Need for more capacity building support to LGUs on performance-based budgeting as well as on results-based monitoring and evaluation

EMB Memorandum Circular on the Streamlined EIA Process issued; IEC Materials on the EIA for LGUs prepared; Need for more capacity building support to LGUs on the EIA Process

Subsequently, the Regional Trainors on GAD will conduct trainings on GAD & social analysis to personnel in other agencies, including the LGUs Need for more capacity building support to LGUs on social analysis & GAD as part of project preparation, implementation as well as in M&E

Need for more capacity building & financial support to LGUs in relation to the relocation of affected families in the course of implementation of infrastructure projects as well as those living in hazardous areas (e.g. waterways, etc)

Managing Multi-Agency Assignments: Highlights of Meeting on Agency with I-1 DBM on Assignments of Consultants on the Cascading of the OPIF

Appendix I - BManaging Multi-Agency Assignments: Highlights of Meeting on Agency with DBM on Assignments of Consultants on the Cascading of the OPIF

Meeting on Agency Assignments of Consultants on the Cascading of

the OPIF 27 March 2007 (5:30PM); 2nd Floor Conference Room

DBM Espinosa 2 Bldg, Gen. Solano St., San Miguel, Manila

Participants: DBM - Director Nora Oliveros, Director Luz Cantor and Director Gil Montalbo; TA- OPIF Consultants: Dr. Jimmy Galvez-Tan, Dean Romeo Quieta & Dean Alex Brillantes); Mr. Noriel Sicad (Consultant – TA Coordinator)

1. The purpose of the meeting was to determine the agency assignments on the incoming OPIF Consultants, procured under the ADB TA on Harmonization as well to review the implementation arrangements involving DBM, the Consultants and in consideration to the agency coverage of the AusAID-assisted PEGR on the cascading of the OPIF.

Assignment of Agencies in the Preparation of Logframes

2. The DBM Directors indicated that the agencies that could be covered by the ADB Consultants were the DILG, DFA, Office of the President (OP), Office of the Vice President (OVP), the Office of the Press Secretary (OPS) and 16 Other Executive Offices (OEOs) F

36. Most of these agencies are being served by the office of Director Luz Cantor.

3. The DBM Directors and the OPIF Consultants discussed and agreed on

the reasonable distribution agencies based the prior involvement of the Consultants with these agencies and also on the 2006 budget allocation of the OEOs. The distribution is shown in the matrix below.

Other Executive Offices (OEOs) – based on 2006 Budget Name of

Consultants Major

Agencies < P50 M P50M – P100M >P100M J. Galvez-Tan DFA; OP MTRCB; OMB GAB PRC; SEC R. Quieta OPS; OVP CFO; FDC Philracom OMA; PMS A. Brillantes DILG AMLAC; PLL0 NSC; PCGG NICA; PDEA

36 The OEOs and their respective 2006 Budget are as follows: (1) Anti-Money Laundering Council (AMLAC)

with P10M;(2) Commission on Filipinos Overseas (CFO) with P33M; (3) Film Development Council (FDC) with P6M; (4) Games and Amusements Board (GAB) with P53M; (5) Movie and Television Review and Classification Board (MTRCB) with P31M; (6) National Intelligence Coordinating Agency (NICA) with P259M; (7) National Security Council (NSC) with P54M; (8) Office on Muslim Affairs (OMA) with P238M; (9) Optical Media Board (OMB) with P27M; (10) Philippine Racing Commission (Philracom) with P58M; (11) Presidential Commission on Good Government (PCGG) with P68M; (12) Presidential Legislative Liaison Office (PLLO) with P19M; (13) Presidential Management Staff (OP-PMS) with P178M; (14) Professional Regulation Commission (PRC) with 351M; (15) Securities and Exchange Commission (SEC) with P214M; and (16) Philippine Drug Enforcement Agency (PDEA).

Managing Multi-Agency Assignments: Highlights of Meeting on Agency with I-2 DBM on Assignments of Consultants on the Cascading of the OPIF

4. The Consultants will coordinate directly with the concerned DBM Directors in terms of scheduling and in providing technical assistance to DBM and the concerned agencies on activities related to the cascading of the OPIF.

5. It was agreed that the DBM and Consultants will work together in

providing assistance in the preparation and refinements of the agency & department logframes together with the performance indicators.

6. The target date for the signing off of the logframes between DBM and the

concerned agencies by 1st week of May 2007. The timelines and the deliverables on the cascading of the OPIF involving the ADB OPIF Consultants are shown in the matrix below.

Milestones/Outputs Timelines

1. Work Program including initial Activity Designs for Consultation meetings and Workshops needed for the delivery of outputs, as enumerated below.

March 2007

2. Draft enhanced/updated Logframes, Major Final Outputs (MFOs) and Performance indicators (PIs) of assigned agencies prepared in consultation with the DBM OPIF Team and Agency Personnel

April 2007

3. Consultation and validation workshops conducted with officials and personnel of Assigned Agencies on respective Agency logframes, MFOs and Performance Indicators (PIs) with milestone on the signing off of logframes by DBM and Agency/Department Officials; draft process documentation prepared

April 2007

4. Inputs provided to the framework and mechanisms in performance monitoring and review in support to the conduct of Agency Performance Review (APR)

May 2007

5. Final process documentation prepared on the validation of logframes, MFOs and PIs of assigned agencies

June 2007

Arrangements on Consultants’ Inputs, Workshops and Other Activities

7. The arrangements, as outlined in the Notes-to-File of the 16 March 2007 meeting (Attachment A), were adopted as reference in the implementation.

8. Director Nora Oliveros informed the group that Assistant Director Darlene

Casiano and the UPMO will provide support in the cascading of the OPIF.

Next Steps

9. DBM will organize a “leveling-off” meeting on 4 April 2007 (9:00 AM – 12:00 NN at DBM) with the participation of PEGR & ADB Consultants, DBM Directors & Personnel and other concerned parties. Agency

Managing Multi-Agency Assignments: Highlights of Meeting on Agency with I-3 DBM on Assignments of Consultants on the Cascading of the OPIF

assignments of Consultants will be discussed and confirmed during this meeting. All the ADB OPIF Consultants confirmed to attend this meeting

10. A separate meeting will also be arranged by Mr. Noriel Sicad (3 PM at

ADB on 4 April 2007) for the ADB OPIF Consultants to meet with Mr. Joven Balbosa (ADB Project Officer) and Ms. Claudia Buentjen (ADB Focal Person on RBM). All the ADB OPIF Consultants confirmed to attend this meeting.

11. Further clarifications and other expectations will also be discussed during

these meetings. R. Noriel B. Sicad TA Coordinator 28 March 2007

Sustainability of GOP & DP Support: Minutes of the GRP-ADB-WB-AusAid Meeting on J-1 LAR/IR Harmonization

Appendix J - BSustainability of GOP & DP Support: Minutes of the GRP-ADB-WB-AusAid Meeting on LAR/IR Harmonization

Minutes of the GRP-ADB-WB-AusAid Meeting on Land Acquisition / IR

Harmonization February 12, 2008

Luzon Room, World Bank Office Manila The purposes of the meeting were to share information on the initiatives of the GRP TWG, ADB, and WB and to explore lines of cooperation among the GRP, World Bank and ADB. The following were the results of the meeting.

1. Implementing Mechanism. There was initial agreement that the GRP Technical Working Group (TWG) is the most effective mechanism/venue for implementing Land Acquisition or IR harmonization. The World Bank Country Systems Team agreed to work with the TWG.

2. Convergence of the LAR Roadmap and the IR Core. The TWG with

the assistance of ADB has developed a Road Map for IR. The participants agreed that the Road Map actually is the outline for a Resettlement Action Plan. There is consensus to use the Road Map as it presently stands. The IR core guideline, whose formulation the World Bank IR study has recommended, actually complements the LAR Road Map. The core guidelines flesh out the key result areas defined in the LAR Road Map.

3. Scope of the IR Work. The scope of the IR work was also discussed. The

ADB TA resulted in agreement in the valuation of national government lands to be used for resettlement and housing. The TWG's next step is the advocacy for the adoption of the valuation methodology by all national agencies. The next arena would be LGU or sub-national lands.

Not yet done are valuation methodologies for private lands to be acquired for government projects and as resettlement sites to house project affected persons. There was also discussion on involuntary resettlement of informal settlers in private lands and involuntary resettlement triggered by private financing and public-private partnership arrangements.

Emerging from the meeting is the scope of the IR Work tabulated below (according to trigger and ownership type). The consensus appears to be to concentrate initially on government project induced IR while keeping an eye on other developments such as the broader environmental/social/urban and rural development concerns (easement concerns in the light of the Pasig River project). Public private partnership projects are a concern since ADB is also lending and infusing

Sustainability of GOP & DP Support: Minutes of the GRP-ADB-WB-AusAid Meeting on J-2 LAR/IR Harmonization

equity to private entities. The World Bank Group does the same through its private sector arm, the International Finance Corporation.

Scope of Work Matrix

Type of Lands/Trigger

Induced by Government Projects Alone: Financed by International Financing Institutions Locally Financed: • National

Government • Locally Financed

Induced by Private Financing as Stand Alone or as Public Private Partnership (PPPs) Arrangements

Induced by Enforcement of Laws e.g. Easement Regulations along Waterways, in Public Thoroughfares, Coastal Areas

Publicly Owned Lands • National

Government Owned

• Local Government Owned

PPPs:

Private Lands

PPPs:

Green: Immediate Priorities Next Steps: 1. Following the meeting, the TWG will flesh out the details of the Roadmap and

present concerns where WB and ADB can support them. 2. The next meeting is tentatively set on February 29, 2007 at the WBOM. 3. There is also need to clarify policy concerns related to IR work, go through

the various laws and implementing rules and regulations and spot gaps, inconsistencies, convergences between international best practice and country systems. There is also a need to assess inconsistencies in the country system itself, Executive Orders issued by the President conflicting with those legislated by Congress, etc, national and sub-national disconnect

Sustainability of GOP & DP Support: Minutes of the GRP-ADB-WB-AusAid Meeting on J-3 LAR/IR Harmonization

(different ways by which land acquisition is to be done for national government and local government projects.)

Aligning Policy & Operational Concerns: Highlights of the ADB & LAR TWG K-1 Meeting on LAR Harmonization

Appendix K - BAligning Policy & Operational Concerns: Highlights of the ADB & LAR TWG Meeting on LAR Harmonization

ADB & LAR TWG Meeting on LAR Harmonization

PhCO Conference Room, ADB Ortigas Center 11:30 AM– 12:30 PM, 29 February 2008

Participants:

GOP/LAR-TWG – Asec Consuelo Suello (PCUP), Ms. M.A. Valenciano (NHA), Mr. R. Ibanez (NHA), Ms. M.A.Mcstay (HUDCC), Mr. Ramon Falcon (SDS) ADB - Mr. Joven Balbosa, Mr. Florian Steinberg Consultants – Ms. Cynthia Arce (ADB-LAR/Advocacy and Communication)), Mr. Noriel Sicad (TA Coordinator), Ms. Juliet Villegas (ADB)

Purpose of the Meeting 1. Mr. Joven Balbosa informed the participants that the purpose of the

meeting was to determine the applicability of the LAR-TWG outputs of the TA on Harmonization and Managing for Results to the LAR concerns of the MMUSP (pipeline project being processed by ADB & HUDCC/GOP).

Overview of Technical Assistance (TA/RETA) Undertaken 2. As a background, Asec Consuelo Suello (HUDCC) provided an overview

on the activities undertaken and outputs produced by the LAR component of the TA on Harmonization in trying the address the complex issues on LAR. These outputs were mainly on the - (a) land valuation methodology of government lands for socialized housing/resettlement and (b) the LAR Roadmap addressing the current issues in resettlement, with an Advocacy Plan for harmonized land valuation.

3. Ms. Villegas mentioned about the previous work undertaken through a

RETA on Capacity Building on IR/LAR (RETA 5935) which prepared a draft Executive Order intended to amend the ROWA Law. She noted that the direction pursued by the RETA apparently did not get broad support from concerned government agencies.

4. Mr. Balbosa also noted that the GOP agencies involved in the TA on

Harmonization, that eventually became members of the LAR-TWG, were not ready to pursue the strategy of amending the ROWA Law. Considering the strong GOP ownership of the harmonization efforts, the LAR-TWG opted to pursue an administrative approach in trying to resolve the land valuation issue instead of amending the law.

Aligning Policy & Operational Concerns: Highlights of the ADB & LAR TWG K-2 Meeting on LAR Harmonization

Discussions 5. Asec Suello explained that the land valuation methodology on government

lands for housing and resettlement will be useful to the new project such as the MMUSP since it help in coming up with structured manner in determining valuation of housing and resettlement site.

6. Mr. Steinberg noted that RETA 5935 has an unfinished Agenda of

resolving the land valuation issue. He indicated that the ADB Guidelines on resettlement considered all affected families under one beneficiary category while the National (Philippines) Guidelines is more detailed and elaborate with separate categories of beneficiaries. He cited the case of Taguig where there are four (4) categories while the ADB guidelines considered all affected families will be entitled to equal compensation (regardless of whether they are owners of the land or informal settlers). As such, the National (GOP) Guidelines provided a more logical approach in classifying the beneficiaries relative to the extent of their investment in a particular area being affected by a government project.

7. He explained that the MMUSP needs to prepare a Resettlement

Framework for 10 years while also preparing separate Resettlement Plan for each of the LGU that will participate in the project. He indicated that in processing the MMUSP, the ADB will consider the following milestones:

a. HUDCC’s endorsement of the Resettlement Framework; and b. LGUs’ endorsement of the Resettlement Plan.

8. Currently, the Angat Project will affect 250 families that will need the

preparation of a resettlement plan while the Pasig River Resettlement has still some issues and was endorsed with reservation.

9. As a possible solution, the idea of having a moratorium on the

resettlement plan was suggested with the intent of eventually harmonizing the GOP and ADB Guidelines at later stage. The harmonized guidelines that will eventually be developed will be based on the developments resulting from the LAR/IR Roadmap and the ongoing ADB Policy update on social safeguards.

10. On the query of Asec Suello on how the resettlement framework was

prepared, Ms. Villegas explained this was based on the UDHA and its IRR as well as on the current practices of NHA on resettlement. The institutional mechanism will have HUDCC as the lead agency with the participation of shelter agencies and other concerned agencies. It also tried to balance the ADB and GOP guidelines, particularly in the compensation of affected families.

Aligning Policy & Operational Concerns: Highlights of the ADB & LAR TWG K-3 Meeting on LAR Harmonization

11. Asec Suelo noted the need to clarify to position of which guidelines will be acceptable in preparing the resettlement framework for the MMUSP.

12. Ms. Villegas suggested that the GOP Guidelines could be adopted as a

compromise but it may not meet the current ADB Guidelines.

13. Mr. Sicad indicated the ADB Guidelines is currently under review and with the regional consultation meetings, under the RETA on Strengthening Country Safeguards, were just recently completed. Considering that the MMUSP is expected to be implemented in about 1 year (2009), it might be helpful to use the MMUSP as the pilot project in moving forward with the LAR/IR Roadmap. As such, the apparent difficulties in harmonizing the GOP and ADB Guidelines could be resolved in the process.

14. He also mentioned that based on the meeting of the LAR-TWG and the

WB IR Team, it was also agreed that some aspects in the LAR/IR Roadmap would be presented by HUDCC to the Cabinet level Social Development Committee (SDC) in May 2008 while it would also be discussed during the March 2008 Philippine Development Forum (PDF).

Agreement

15. it was agreed that the ADB Team on MMUSP and HUDCC will work together in resolving the various concerns affecting the preparation of the MMUSP as part of the implementation of the harmonization with reference to the LAR/IR Roadmap.

Supporting the Delivery of Outputs: Summary of Financial Status (as of 30 April 2008) L-1

Appendix L - BSupporting the Delivery of Outputs: Summary of Financial Status (as of 30 April 2008)

Grant Financial Status (as of 30 April 2008), in US$

TA Estimate

(November 2005) Allocation (August

2006) Actual Disbursement

(April 2008) Component (1) Amount % Amount

(2) % Actual (3)

% (4)

Remarks (5)

Whole TA Consultants/Travels/Reports 623,000 89 401,735 57 1 International and 18 Local

Consultants

Workshops/Trainings/Conference 44,000 6 260,443 37 Learning-by-doing approach pursued by TWGs, with stakeholders consultations

Misc/Manuals/IEC Materials 10,000 1 36,898 5 Contingencies 23,000 3

GRAND TOTAL 700,000 100 700,000 100% 699,076 100

Manuals were prepared by TWGs and printed on Procurement (LGU), Environment, Gender and Development (GAD) & Land Acquisition and Resettlement (LAR)

Part A -Overall Support Consultants (2) 126,966.31 83 Part A – Training/Workshop 18,394.79 12 Earlier Contracts 7,116.02 5

Sub-total Part A 137,700 20% 152,477.12 % Component Allocation 111%

Support to Harmonization Committee (HC), overall coordination on the implementation of all components of the TA (26 months), conduct of nine (9) HC Meetings, three (3) Annual GOP-DP Joint Meetings, preparation of Stocktaking Report, Harmonization Agenda, conduct of 2006 Baseline Survey, and 2008 2nd Round Survey

Part B – Procurement Procurement Consultants (3) 19,374 16 Procurement Workshops 87,950 74 Procurement Manuals 11,994 10

Sub-total Proc 125,000 18% 119,317 100 % Component Allocation 95%

Focused Group Discussions and LGU Validation Workshop on the Procurement Manual for LGUs as well as on the development Training Effectiveness Methodology and LGU Agency Performance Indicators (API)

Supporting the Delivery of Outputs: Summary of Financial Status (as of 30 April 2008) L-2

TA Estimate (November 2005)

Allocation (August 2006)

Actual Disbursement (April 2008) Component

(1) Amount % Amount (2) % Actual

(3) % (4)

Remarks (5)

Part B - Fin Mgt & Audit Consultants (2) 91,741 99 Finance - Workshops/Briefings 9,545 9

Sub-total Fin/Aud 118,100 17% 101,287 100 % Component Allocation 86%

Assessment Report on NGAS, Audit of FAPs and Harmonizing of PFM Reports within GOP and DPs

Part C - OPIF (Budget) Consultants (4) 77,246 71 Budget – Workshops 32,179 29

Sub-total OPIF 104,200 15% 109,426 100 % Component Allocation 105%

Cascading of OPIF in 21 Agencies, updating of OPIF Manual, Development of OPIF M&E Framework and Capability Building Workshops on OPIF for DBM Personnel

Part D – Environment Consultants (4) 34,911 49 Environment – Workshops 29,292 41 Manuals/Printing 7,143 10

Sub-total Environment 70,000 10% 71,346 100 % Component Allocation 102%

Joint Assessment Report of TA & RETA. LGU and Stakeholders Consultation in the preparation of Streamlined EIA Manual & the development of on-line database support for EIA.

Part D – GAD Consultant (1) 21,007 28 GAD – Workshops 43,110 58 GAD – Manuals 10,076 14

Sub-total GAD 75,000 11% 74,193 100 % Component Allocation 99%

Trainors' Training on Harmonized GAD Guidelines & Updating of Harmonized GAD Manual (2nd Edition).

Part D- LAR Consultants (3) 30,490 43 LAR – Workshops 32,856 46 LAR – Manuals 7,685 11

Sub-total LAR 70,000 10% 71,030 100 % Component Allocation 101%

Joint Assessment Report of TA & RETA. Field Testing and Stakeholders Consultation on Land Valuation Manual on Gov’t lands for housing and resettlement areas as well as on the formulation of the LAR Roadmap.

Supporting the Delivery of Outputs: Summary of Financial Status (as of 30 April 2008) L-3

Importance of High-Level Support & Guidance: Highlights of 6 February 2008 M-1 Harmonization Committee Meeting

Appendix M - BImportance of High-Level Support & Guidance: Highlights of 6 February 2008 Harmonization Committee Meeting

Harmonization Committee Meeting

6 February 2008, 10:00 AM IFG Conference Room

5/F DOF Bldg, Roxas Blvd, Manila

Draft Highlights of the Meeting Attendance

1. Undersecretary Roberto B. Tan DOF 2. Deputy Director-General Rolando G. Tungpalan NEDA 3. Assistant Commissioner Carmela S. Perez COA 4. Undersecretary Laura B. Pascua DOF

- Represented by Director Nora Oliveros 5. Assistant Commissioner Emma M. Espina COA

‐ Represented by Director Bato S. Ali, Jr. 6. Ms. Myrna Serial COA 7. Director Stella C. Laureano DOF 8. Ms. Alissa Santiago DOF 9. Ms. Sharon Alamanza DOF

10. Director Roderick M. Planta NEDA 11. Ms. Violeta S. Corpus NEDA 12. Ms. Marlene R. Vinluan NEDA 13. Ms. Rosalina G. Almendral NEDA 14. Ms. Carmie Ricerra ADB 15. Ms. Lirio T. Abuyuan Consultant (RBM) 16. Mr. Noriel B. Sicad Consultant

(Coordinator) Proceedings and Discussions

1. The meeting started at about 10:10 AM with NEDA Deputy Director General Rolando G. Tungpalan presiding the meeting. The proposed Agenda was approved, consisting of the following items: (a) Review of Highlights of the 12 December 2007 Meeting; (b) Review of Matters Arising; (c) Proposed Objectives and Agenda for the Meeting on Presentation of Outputs on TA on Harmonization; (d) Updates on the Bangkok & Johannesburg Conferences and Preparation for the September 2008 High Level Forum in Ghana; (e) Updates on the Remaining TA Outputs and Budget Requirements; and (f) other matters.

Importance of High-Level Support & Guidance: Highlights of 6 February 2008 M-2 Harmonization Committee Meeting

2. The HC members dispensed with the review on the Highlights of the 12 December 2007 Meeting and agreed that comments could still be submitted to the HC Secretariat, through Director Stella Laureano, until next week.

3. On Matters Arising, Mr. Noriel Sicad (TA Coordinator) reported that there

were 2 matters arising from the 12 December 2007 meeting. One of the items – on the request of DOF on the extension of TA closing date to 30 April 2008, was already approved by ADB. The other item - the proposed outputs and budget during the extension period was included as part of the Agenda (item #5) of the 6 February 2008 meeting.

On the Proposed Objectives and Agenda for the Presentation of the Outputs of the TA on Harmonization

4. Mr. Noriel Sicad (TA Coordinator) presented the proposed objectives and

agenda for the Joint GOP-Development Partners (DP) meeting on Harmonization, consisting of the following: (a) objectives; (b) key messages on lessons learned; (c) outputs and knowledge products of the 7 components of the TA; (d) desired response from the participants; (d) scope of presentation and allocation of time; and (e) proposed Agenda & program.

5. The proposed items presented were approved with the exception of one of

the key messages on challenges of integrating international commitments on Paris Declaration and Climate Change. As such, the focus of the Joint GOP-DP meeting would be mainly on the Paris Declaration and avoid confusion during the discussion of referring to other international commitments.

6. Ascom Perez suggested that the knowledge products such as Manuals,

prepared by the TWGs working on the TA on Harmonization and Managing for Results, could be loaded into a website to help promote faster dissemination and actual use. Ms. Abuyuan also observed that the accomplishments of the TA were not also being cited or are being understated during the interviews conducted as part Country Level Evaluation.

7. DDG Tungpalan noted the need for a focal person to manage the

information on the outputs of the harmonization efforts similar to the knowledge management focal person in ADB’s Community of Practice (COP) on Managing for Development Results (MfDR). He suggested that more resources would be provided for advocacy and knowledge management for everybody to gain access to these data. As such, the agencies and consultants would be able to gain access to information and

Importance of High-Level Support & Guidance: Highlights of 6 February 2008 M-3 Harmonization Committee Meeting

the GOP and DPs need not spend again on the conduct the same studies and preparation of the same manuals 37.

8. It was agreed that DOF will take the lead in activating the harmonization

website and uploading the knowledge products on harmonization into the DOF Harmonization website. As such, it will help in disseminating the information related to harmonization at reduced costs (as compared to printed copies). The work on knowledge management would be supported by GOP resources generated from the KFW Interest Differential Fund (IDF).

9. As part of the advocacy effort, Director Stella Laureano (DOF) reported

that she had discussed with Mr. Joven Balbosa (ADB) on the use of the Philippine Development Forum (PDF) as the venue to further advocate for harmonization. She suggested that the GOP would make a separate presentation on the Harmonization at the PDF.

10. DDG Tungpalan supported the proposal of making a separate

presentation at the PDF focusing on the harmonization efforts - not just on the ADB TA and GOP accomplishments but also including those of other DPs. Director Erick Planta also indicated that the results of the baseline survey would be included in the presentation during the PDF.

11. On the presentation during the Joint GOP-DP meeting (proposed on 18

February 2008), the HC members agreed on the following: (a) use of a unified presentation template; (b) highlighting of streamlined county systems and integration of results-orientation in the budget and in monitoring; (c) quick glance on the 12 indicators of Paris Declaration; and (d) next steps on activities related to the harmonization efforts.

12. Furthermore, the OPIF will be highlighted to convey the message that the

implementation of a performance-based budget system, through the OPIF, is a GOP priority as a mechanism of focusing on results and in promoting accountability.

On the Updates on Remaining TA Outputs and Budget Requirements

13. DDG Tungpalan suggested Agenda item # 5 (Remaining TA Outputs and Budget) would be tackled ahead than the Agenda item on the Preparations for the September 2008 High Level Forum (HLF). It was expected that Undersecretary Tan would be able to join at the latter part of the HC meeting and participate during the discussions on the HLF preparations.

37 Digital copies of the manuals prepared by the component TWGs and Consultants were already forwarded

to DOF for uploading into the DOF/harmonization website.

Importance of High-Level Support & Guidance: Highlights of 6 February 2008 M-4 Harmonization Committee Meeting

14. Mr. Noriel Sicad presented the matrix of the outputs and the budget requirement of 5 agencies during the extension period, as indicated below.

a. HC/GOP and ADB requiring an additional budget of about

US$9,000 for the following outputs: (i) TA outputs and outcomes presented to GOP & DP stakeholders; and (ii) IEC materials prepared on TA outputs.

b. COA requiring an additional budget of about US$16,511 with an output of 50 COA personnel trained on Auditing of FAPs.

c. DBM requiring an additional budget of about US$16,213 for the following outputs: (i) OPIF Manual prepared and finalized; and (ii) 55 DBM personnel trained on OPIF.

d. NEDA/DOF requiring an additional budget of about US$7,901 for the following outputs: (i) 2nd Round Survey on PD conducted; and (ii) Report prepared for HLF in Ghana in September 2008.

e. DOF/ADB requiring an additional budget of about US$5,550 for the 2 following outputs: (I) coordination and support provided during extension period; and (ii) Project Completion Report prepared.

15. It was further explained that the budget requirements need to be reviewed

and reduced (by the HC) considering that the total budget requirement was about US$56,165 (including an allocation of US1, 000.00 for the baseline budget) while the available funds was only US$40,825 or a deficit of US$15,350.

16. Ms. Carmie Ricerra (ADB) mentioned that all honoraria for Resource

Persons and Facilitators could not be funded by TA resources since these items are considered as GOP counterpart. She indicated that she would explore with ADB on the possibilities of including such items in response to the request of COA and DBM.

17. DDG Tungpalan instructed that each agency would review their respective

budget estimates and to convey their respective offer of possible cuts to the HC Secretariat, in order to offset the estimated deficit of $15,350 during the extension. He also instructed that the proposed TOR and work program of the Advocacy Expert (with budget requirement of US$2,000) be circulated, by email, to all the HC and TWG members for review F

38. On Updates on Bangkok and Johannesburg Conferences and Preparation for the September 2008 High Level Forum (HLF) in Ghana

18. Director Erick Planta reported on the 2 conferences (Bangkok and Johannesburg) that he attended together with NEDA Assistant Director-

38 TOR and work program of Advocacy Expert was forwarded by TA Coordinator to all the HC and TWG

members, through email. HC TWG (DOF & NEDA) decided to defer the procurement and deployment of the Advocacy Expert and to secure funding from other Technical Assistance.

Importance of High-Level Support & Guidance: Highlights of 6 February 2008 M-5 Harmonization Committee Meeting

General Marcelina Bacani, namely: (a) 2008 Survey on Aid Effectiveness: Asia-Pacific Orientation Workshop (Bangkok, Thailand on 21-22 January 2008); and (b) Evaluation of the Paris Declaration: Emerging Findings Workshop (Parys, South Africa on 31 January – 1 February 2008).

19. Conference in Bangkok – Director Planta reported that the main Agenda

on the Bangkok Workshop was the roll-out of the Survey for 2008 while the South Africa Workshop was on the Country Level Evaluation.

20. Mr. Joven Balbosa also reported that the Bangkok Workshop organizers

acknowledged and appreciated the efforts of the GOP in carrying the baseline survey for 2005/2006. He further reported that the ADB was appointed as the Coordinator among Development Partners in the Philippines with him as the focal person to facilitate the conduct of 2008 Survey.

21. On the query of DDG Tungpalan on the timetable, Director Planta

responded that the survey should be completed by 31 March 2008 with the initial report submitted to OECD/DAC by 18 February 2008.

22. Undersecretary Tan instructed that the needed resources on the conduct

of the 2008 Survey should be supported by the TA on Harmonization and Managing for Results, as proposed by NEDA.

23. Conference in South Africa - After the discussion and the agreement on

the funding of 2008 Survey, Director Planta reported on the highlights of the Workshop in South Africa. He indicated that the focus of this workshop was on the Country Level Evaluation.

24. He reported the Philippines will carry out the Country Level Evaluation

with the support of GOP funds generated from Interest Differential Fund (IDF) of the loan proceeds from KfW. He also reported that the Country level Evaluation will be carried out by a Consultant Team composed of the following: (a) Dr. Dante Canlas – Team Leader; (b) Dr. Jaime Galveztan – Health Sector; and (c) Ms. Lirio Abuyuan – Rural Development Sector.

25. He also reported that the workshop was more interested on the problems

that will be presented in Ghana (in September 2008) that the Development Partners will have to address. The initial report on the country level evaluation has to be submitted by 1 March 2008.

Summary

26. DDG Tungpalan summarized that the 2008 Survey and the Country Level Evaluation will be able to provide more inputs for the preparation for the

Importance of High-Level Support & Guidance: Highlights of 6 February 2008 M-6 Harmonization Committee Meeting

High Level Forum in Ghana. He indicated that the GOP has the capability in undertaking the necessary preparations.

27. On the query of Undersecretary Tan on the milestones which the GOP

has to comply, Director Planta indicated that the challenge would be the preparation of the needed documentation that will be submitted to the

28. OECD/DAC Reference Group. The meeting was adjourned at 12:30 PM.

Working Continually on Mutual Accountability: Highlights of the N-1 21 February 2008 Joint GOP-DP Meeting on Harmonization

Appendix N - BWorking Continually on Mutual Accountability: Highlights of the 21 February 2008 Joint GOP-DP Meeting on Harmonization

Highlights of the Meeting (Draft)

Joint Government-Development Partners’ Meeting: Progress on the Harmonization Agenda and

Updates on Country Level Preparations for the Third High Level Forum (HLF-3) 21 February 2008, 9:00 AM – 1:00 PM

ADB Auditorium, Ortigas Center

The meeting was attended by senior officials of the Government of the Philippines (GOP) and the Harmonization Committee (HC) headed by DOF Undersecretary Roberto B. Tan and NEDA Deputy Director-General Rolando G. Tungpalan as well as representatives from various development partners in the Philippines. About 70 personnel participated in the workshop with 46 participants from the GOP and 24 from the Development Partner Agencies. Introduction Deputy Director General Rolando G. Tungpalan (NEDA), Co-Chair of the Harmonization Committee (HC), read the Opening Statement of Undersecretary Roberto Tan (DOF), who was attending another important meeting with the GOP Economic Managers. He welcomed the participants to this year’s Joint GOP-Development Partners meeting on the harmonization efforts in the Philippines. He also indicated that the Joint GOP-DP Meeting was part of the preparation for the March 2008 Philippine Development Forum (PDF) as well as for the Third High Level Forum (HLF-3) in Ghana in September 2008. (Undersecretary Tan was able to join at the later part of the Joint GOP-DP Meeting on Harmonization). Mr. Tom Crouch (ADB) also welcomed the participants to the meeting. He mentioned that the Philippines had emerged as a leader in customizing for country-specific circumstances the global aspirations of the Paris Declaration (PD). He noted that the Philippines very successfully transformed the rhetoric of its commitments in the PD which encouraged more effective development partnerships in pursuing concrete actions. As such, the Philippines is moving from the ideal to the real in very positive ways, with the support of the Philippine Harmonization Committee. He indicated that ADB is proud to be a partner in this endeavor while serving in a facilitative role – providing some technical assistance (and hosting meetings), and more importantly, participating actively in the process. Director Stella Laureano (DOF) presented the objectives of the meeting and sequence of presentation on the updates on harmonization, which were

Working Continually on Mutual Accountability: Highlights of the N-2 21 February 2008 Joint GOP-DP Meeting on Harmonization

accomplished by the TWGs working under the Harmonization Committee and supported by various technical assistance provided by the Development Partners (DPs). She highlighted the objectives of the meeting which were the following: (1) to update participants (GOP and Development Partners) on the development results achieved in the implementation of the GOP Harmonization Agenda; and (2) to encourage and secure support, from Development Partners and in coordination with GOP agencies, in further strengthening country systems and mainstreaming results orientation towards improved development effectiveness. She indicated that GOP Harmonization Agenda mainly focuses on the achievement of the following outcomes:

1. Country systems streamlined and extensively supported by development partners, on the following; procurement, public financial management, environmental safeguards, gender and development (GAD), land acquisition and resettlement (LAR); and

2. Results-based orientation mainstreamed through the following; Organization

Performance Indicator Framework (OPIF), Efficiency and Effectiveness Review (EER), Results Monitoring and Evaluation (RME), among others.

Presentation - Updates on Harmonization Procurement - Director Emieluisa Penano (GPPB-TSO) reported on the recent accomplishments of the Government related to procurement with the support of the Development Partners (DPs), as indicated below.

1. Feedback Mechanism for Monitoring Effectiveness of GPPB Trainings Developed

2. Customized Procurement Manuals (CPMs) developed for 9 agencies 3. Refinement of procurement procedures under GPRA prepared (e.g. small

value procurement, NGO participation in public procurement, etc.) 4. Procurement Manuals for LGUs finalized, printed & disseminated 5. Continued operations of PhilGEPS (Phase 1) which already incorporates

MDB short-term requirements as accepted by WB and ADB (Pilot-testing is ongoing in line agencies such as DepED, DOH, DPWH, DA, DENR and LWUA)

6. On-line Procurement Monitoring and Evaluation System (OMES) developed with 227 agencies registered as of February 2008

7. Procurement Transparency Group formed to institutionalize partnership with CSOs

8. Completed 2006 Assessment of the Philippine Procurement System (using OECD-DAC version 4)

9. Ongoing negotiations on the Design and develop Detailed Modular Syllabus for the Professionalization Program of procurement personnel

Working Continually on Mutual Accountability: Highlights of the N-3 21 February 2008 Joint GOP-DP Meeting on Harmonization

10. Initial Communication Plan on Procurement presented to PDF Subgroup on Procurement last November 2007.

Initial gains were also noted on the use of procurement system and capacity building program, which were as follows: (1) improved capacity of LGU personnel in procurement processes resulting from capability building; (2) broader support of LGU Officials resulting from consultations undertaken in the preparation of Procurement Manual for LGUs; (3) Training Effectiveness Methodology developed with the participation of the interagency Regional Procurement Training Specialist; (4) continued partnership of GOP and DPs in upgrading the Philippine Government Electronic Procurement System (PhilGEPS); and (5) increased level on the use of PhilGEPS by government agencies, among others.

Director Penano also presented the priority activities that will be pursued in further strengthening the country’s procurement system, as indicated below. 1. Preparation of Harmonized Rules on Foreign Funded Projects (IRR-B) 2. Revisiting IRR-A (in line with preparation of IRR-B) 3. Finalization and Implementation of Communication Plan 4. Development of Simplified Barangay Procurement Manuals and Other

Training Tools 5. Accreditation Process for Trainors on Procurement 6. Rewards and Incentive System 7. Development of Monitoring Systems and Enhancement of On-line

Procurement and Evaluation System OMES (Database of Procurement Reports)

8. Updating of Agency Procurement Performance Indicators (from BIS/BLI to CPI)

9. Roll-out of Philippine Electronic Procurement System (PhilGEPS) Deputy Director General Tungpalan noted the strong ownership by LGUs in supporting the procurement system, as demonstrated by their willingness and ability to pay for the expenses of LGU personnel involved in procurement trainings. He also encouraged the use of the country system on procurement while also noted the need for the issuance of IRR-B that will promote competitiveness and transparency (and with no exemptions). He mentioned that this concern is being discussed in the Economic Managers Meeting that Usec Tan attended. Public Financial Management – Director Bato Ali, Jr. (COA) presented the recent updates on the PFM related initiatives carried out by COA, as indicated below.

1. Report on Specific Accounting and Reporting Systems and Procedures for Harmonization prepared

2. Assessment Report prepared on the New Government Accounting System (NGAS)

Working Continually on Mutual Accountability: Highlights of the N-4 21 February 2008 Joint GOP-DP Meeting on Harmonization

3. Assessment of NGAS and e-NGAS in relation to Budget System prepared 4. Evaluation Report on Philippine Audit System prepared 5. Assessment of government auditing system, using International Standard of

Auditing (ISA) prepared 6. Draft Revised Guidelines on Audit of Foreign-Assisted Projects (FAPs)

prepared 7. Guidelines on audit of FAPs, using ISA, prepared 8. Ongoing Standardization/ Harmonization of reporting requirements of

oversight agencies 9. Ongoing Harmonization of NGAS/e-NGAS & Budget System initiatives for

enhancing budget preparation, execution and accountability

The standardization/harmonization of reports will result into the reduction on the number of reports prepared by implementing agencies, thus, reducing transaction costs. Initial gains were also realized in the harmonization efforts such as on the following: (1) organized Inter-agency TWG working on the harmonization of PFM processes & reporting; (2) recommendations on the Assessment Reports on Accounting & Auditing will be helpful in COA’s improvement initiatives; and (3) prepared Action Plan on streamlining and harmonizing PFM processes within GOP and with DPs. Director Ali also mentioned the priority activities that will be pursued by COA/GOP in further strengthening the financial system of the Philippine Government, which were as follows:

1. Interface of COA’s Annual Financial Report (AFR) & DBM’s Budget of Expenditures and Sources of Financing (BESF) which are both submitted to Congress;

2. Update accounting standards and training on International Public Sector Accounting Standards (IPSAS) and International Financial Reporting Standards (IFRS);

3. Integrate Organizational Performance Indicator Framework (OPIF) in NGAS/e-NGAS/Budget System

4. Capability Building on Audit of FAPs 5. Integration of OPIF in Performance Audit 6. Update procurement audit procedures and prepare audit manual, inclusive

of training component 7. Update forensic audit procedures and prepare audit manual, inclusive of

training component

The participants noted the need to support the challenge to bring down (or trickle down) to the LGUs the efforts in the National Government in further streamlining the PFM system as a part of strengthening governance.

Working Continually on Mutual Accountability: Highlights of the N-5 21 February 2008 Joint GOP-DP Meeting on Harmonization

Environment - Engr. Elsie Cezar (DENR/EMB) presented the updates on the streamlining of the processes related to the Environmental Impact Assessment (EIA) System towards improving project quality-at-entry, as indicated below.

1. Joint ADB-WB EIA Assessment Report completed 2. Information, Education and Communication (IEC) materials prepared on

current innovations on Philippine EA Requirement consisting of the following: (a) printed Revised Procedural Manual for DAO 2003-30 on streamlining the Philippine Environmental Impact Statement System; (b) IEC Materials for General Public, LGU, Government Agencies and Proponents were printed and distributed; and (c) improved EIA Webpage installed and operationalized (including database system management scheme.

3. Web-based Interactive (EA) Query System developed in support to the Streamlined Environmental Assessment (EA) launched consisting of the following: (a) Online EA Coverage Query System (could be accessed at http://www.eia.emb.gov.ph); (b) CNC (Certificate of Non- Coverage) online application; (c) Project Categorization; (d) Guidance on Procedures for Processing of ECC Applications.

4. Basic Framework on Project Planning Information Support System for EA developed and integrated into the web-based database system (further technical assistance needed), with the following components: (a) environmentally Critical Areas (ECA) Information System; and (b) Environmental Stressor Identification Support System

The following improvements were noted resulting from the streamlined EIA process: (1) facilitated review and issuance of Environmental Compliance Certificate (ECC) resulting from clarification roles and responsibilities of EMB relative to other agencies; (2) promoted transparency in ECC requirements and application with web-base database support on EIA system; (3) advocacy effort integrated as part of the strategy in gaining broader support from the general public, national government agencies, LGUs and industry groups; (4) DENR Memorandum Circular (MC 2007-08 dated 13 July 2007) issued clarifying the use of the EIA recommendations as a project/program planning tool and input to the permitting requirements of other government agencies; (5) revised EIA Procedural Manual (per EMB MC 2007-02 dated 21 Aug. 2007) w/ more user-friendly features: (a) clearer & rationalized guidelines on project screening, ECC application & monitoring requirements, streamlined procedures; and (b) more decision criteria/guidance for standardization; and (6) streamlined EIA System served as common framework on the technical assistance on harmonization work with ADB and WB as well as other bilateral agencies such as CIDA.

Engr. Cezar outlined the next steps that will be pursued by the DENR/EMB in further strengthening the EIA process, that will include the following: (1) LGU Information Drive on the Streamlined EIA Process consisting of the development

Working Continually on Mutual Accountability: Highlights of the N-6 21 February 2008 Joint GOP-DP Meeting on Harmonization

of orientation modules, conduct of fora, and continuous LGU information drive and coordination; and (2) updating and continuous improvement on the EIA support system, including the Environmentally Critical Areas (ECA) Information System, Environmental Stressor Identification Support System, and Environmentally Critical Project Information System.

Gender and Development (GAD) – Ms. Marites B. Lagarto (NEDA/SDS) presented the recent updates in improving project quality-at-entry in the area of gender and development, as listed below.

1. 2nd edition of the Harmonized GAD Guidelines revised and printed 2. Five (5) batches of Training of Trainors (TOT) conducted with 142 staffs of

government at national and regional levels trained 3. Training Manual on the use of the Harmonized GAD Guidelines developed

and printed 4. Continuing dialogues conducted thru the ODA-GAD Network meetings 5. Orientation on the Harmonized GAD Guidelines conducted for the ODA

partners/community 6. Continuing monitoring of gender-responsiveness of ODA programs and

projects using the Harmonized GAD Guidelines

She indicated that follow-up activities will be pursue to further improved the mainstreaming of social analysis and GAD concerns in project design, implementation and M&E, such as the following: (1) continuous capacity building program for pool of Trainors’ to meet increasing demand for training on the use of the Harmonized GAD Guidelines; and (2) follow-up evaluation and monitoring on effectiveness of trainings on enhancing project quality at design, implementation, monitoring and evaluation.

Land Acquisition and Resettlement - Undersecretary Percival Chavez (PCUP) presented the highlights of recent accomplishment on of the inter-agency LAR Technical Working Group (TWG), as indicated below.

1. Assessment Report on LAR prepared as part of Regional Technical Assistance on Strengthening Country Safeguard System

2. Standard Land Valuation Methodology and Formula for Government Lands for Housing and Resettlement sites developed and finalized

3. IEC materials and knowledge products on promoting the adoption and utilization of the Standard Valuation Methodology developed

4. GOP Strategic Action Plan (LAR/IR Roadmap) designed and finalized He elaborated on the goal of the LAR/IR Roadmap towards having a strengthened, rationalized, harmonized institutional mechanism and coordination for the implementation of LAR. It will be carried out through the following: (1) full participation of all agencies involved in LAR from Project pre-feasibility stage, to actual movement, to post-relocation for Projects with resettlement requirements,

Working Continually on Mutual Accountability: Highlights of the N-7 21 February 2008 Joint GOP-DP Meeting on Harmonization

with HUDCC-NHA taking lead and full responsibility; (2) complete resettlement funding requirements (relocation costs, incentives, social packages, etc.) of Projects with resettlement component to be released to housing agency (NHA); (3) design and institutionalization of a comprehensive resettlement action plan (RAP) covering minimum and acceptable requirements for the conduct of IR/LAR activities; and (4) end-to-end monitoring of all resettlement projects to be undertaken by a Resettlement Oversight Interagency Committee chaired by HUDCC. It was envisioned that the following outputs would be necessary to support the LAR/IR Roadmap: (a) appropriate policies, resolutions and Executive Issuances to support/strengthen the institutionalization of the LAR/IR initiatives; and (b) specific medium-term RAP for all projects.

The process of pursuing the inter-agency approach in resolving the issues involved in LAR/IR resulted in the following initial gains, as stated below.

1. Promoted interagency work with strong GOP ownership and agency

participation in the development of the land valuation manual and in the formulation of the LAR Roadmap

2. LAR Roadmap served as the reference in further coordination work among DPs (ADB, WB and AusAID) towards harmonization of policies and procedures on LAR/IR of GOP and DPs

3. Advocacy effort integrated as part of the strategy in gaining broader support on the Land Valuation Methodology

Usec Chavez also presented the next steps in further consolidating the efforts in

moving forward in harmonizing the various policies and operation concerns affecting LAR/IR, as listed below.

1. Implementation / Application of the Standard Land Valuation Methodology

involving capacity building through trainings and workshops at the regions and cities, and advocacy and participatory strategies and activities to promote social acceptance of the valuation method by all stakeholders.

2. Design/development of a Comprehensive Resettlement Action Plan and Set

of Guidelines through the conduct of consultation, participatory strategies and consensus-building activities and workshops as well as capacity building on the application of the Comprehensive Resettlement Action Plan (RAP), and advocacy activities to promote social acceptance of the Comprehensive RAP by stakeholders.

The participants noted the need to consider the concerns of the indigenous

people (IPs) on matters such as the EIA and LAR/IR in projects involving ancestral domain areas.

Working Continually on Mutual Accountability: Highlights of the N-8 21 February 2008 Joint GOP-DP Meeting on Harmonization

Managing for Results: Performance-Based Budget Processes - Director Nora Oliveros (DBM) reported on the recent updates on the cascading of the Organizational Performance Indicator Framework (OPIF), as indicated below.

1. Installed a performance-based budget system (OPIF) in whole of government covering 20 “departments” originally covered in the FY 2007 OPIF Book, 3 Other Offices/Agencies (OVP, OPS, ARMM), 114 line bureaus and attached agencies of the 20departments, and 34 Other Executive Offices (OEOs)

2. Published the OPIF Book (FY 2007 and 2008 budget) with Major Final

Outputs (MFOs) developed; Performance Indicators (PIs) identified, and Performance Targets set

3. Capacity building consisting of Learning by doing by Agencies with the

support of DBM and Consultants (ADB & AusAID), and mentoring of DBM and Agency Personnel with the support of the DBM OPIF Team

4. Preparation of the OPIF Manual (Concept, Principles and Processes)

5. OPIF Roll-Out to More Agencies to include State Universities and

Colleges (SUCs), and agencies with fiscal autonomy (FAAs)

6. Development of Methodologies for major final outputs (MFO) Costing (with cost allocation by MFO)

Director Oliveros also indicated that the priority activities that will be pursued in support to the OPIF will involve the design and installation of a results-based monitoring and evaluation (RBME) system, which will include the following concerns: (1) Readiness Assessment; (2) Agency Performance Rating System; (3) Program Assessment Rating Tool; and (4) Performance Incentive Scheme.

Presentation – Baseline Study on Paris Declaration Director Roderick Planta (NEDA/PMS) presented the results of the baseline study on the 12 indicators of the Paris Declaration on Aid Effectiveness. He indicated that 27 out of the 33 Development Partners (DPs) and accounting for 95% of the ODA for 2005/2006, responded to the baseline survey. He explained that Study aimed to monitor and encourage progress in implementing the Paris declaration at country level as well as built on existing local processes with a view to the following:

• Supporting broad-based dialogue at country level on how to make aid more effective;

• Building a common understanding on how effective aid contributes to

achieving development results; and

Working Continually on Mutual Accountability: Highlights of the N-9 21 February 2008 Joint GOP-DP Meeting on Harmonization

• Providing an accurate description of how aid is managed.

The baseline study results on the 12 indicators of the Paris Declaration were presented, as shown below. Indicator 1: Partners have Operational Development Strategies

• Medium Term Philippine Development Plan (MTPDP) • Medium Term Public Investment Plan (MTPIP) • President’s Ten-Point Agenda • Comprehensive and Integrated Infrastructure Program (CIIP) • Socio-Economic Report (SER) • Public Expenditure Management Improvement Program (PEMIP) • Medium Term Expenditure Framework (MTEF) • Organizational Performance Indicator Framework (OPIF) • Strategic Planning Matrices (SPM) • Effectiveness and Efficiency Review (EER) • Public Expenditure Reform (PER) • Philippines’ Harmonization Agenda

Indicator 2: Building Reliable Country Systems

• Enactment of Procurement Reform Law (2003) • Oversight Body: Government Procurement Policy Board (GPPB) • Government Electronic Procurement System (G-EPS) • National Government Accounting System (NGAS) • Electronic New Government Accounting System (e-NGAS) • Sector-Wide Approach (SWAp) and budget support

Indicator 3: Aid flows are Aligned on National Priorities How much ODA (excluding debt reorganization) did you disburse at country-level?

For Gov’t

Sector (a)

(US $ M)

Recorded in GAA (b)

(US $ M) Ratio

(b/a)

2005 $1,913 $500 26%

2006 $1,820 $582 32% Target for 2010: Halve the gap – halve the proportion of aid flows to Government sector not reported on Government’s budget (with at least 85% reported)

Working Continually on Mutual Accountability: Highlights of the N-10 21 February 2008 Joint GOP-DP Meeting on Harmonization

Indicator 4: Strengthen Capacity by Coordinated Support

• How much technical cooperation did you provide? • How much technical cooperation did you provide through coordinated

programs in support of capacity development?

Total Technical Cooperation

(a) (US $ M)

Coordinated Technical

Cooperation (b)

(US $ M)

Ratio (b/a)

2005 $224 $173 77% 2006 $193 $132 68%

Target for 2010: 50% of technical cooperation flows are implemented through coordinated programs consistent with national development strategies Indicator 5a: Use of Public Financial Management Systems (percent of aid) How much ODA disbursed for the government sector used …?

Year

Aid Disbursed by DPs for

Govt Sector (a)

(US $ M)

National Budget

Execution Procedures

(b) (US $ M)

National Financial Reporting

Procedures(c)

(US $ M)

National Auditing

Procedures (d)

(US $ M)

Ratio Average [(b,c,d)/ a]

2005 $1,913 $1,660 $1,355 $1,224 74%

2006 $1,820 $1,617 $731 $677 55%

Target for 2010: Reduce the gap by one-third (i.e. 83% by 2010) Indicator 5b: Use of Country Procurement Systems (percent of aid) How much ODA disbursed for the government sector used national procurement systems?

For Gov’t

Sector (a)

(US $ M)

National Procurement

Systems (b)

(US $ M)

Ratio (b/a)

2005 $1,913 $711 37%

2006 $1,820 $528 29% Target for 2010: Reduce the gap by one-third (i.e. 58% by 2010)

Working Continually on Mutual Accountability: Highlights of the N-11 21 February 2008 Joint GOP-DP Meeting on Harmonization

Indicator 6: Strengthen Capacity by Avoiding Parallel Implementation Structures

• How many parallel project implementation units did you make use of?

Number Of Parallel PIUs

2005 77

2006 82

Target by 2010: Reduce by two-thirds the stock of parallel PIUs (i.e. only 26 or less PIUs by 2010) Indicator 7: Aid is More Predictable How much total ODA for the government sector did you schedule for disbursement?

Scheduled for Gov’t Sector

(a) (US $ M)

Direct Budget Support

(b) (US $ M)

Ratio (b/a)

2005 $1,849 $350 19%

2006 $1,321 $737 56% Target for 2010: Halve the gap – halve the proportion of aid not disbursed within the FY for which it was scheduled (i.e. 60% by 2010) Indicator 8: Untying Aid

• 8 of 25 Development Partners working with the Philippines provide untied aid (46% or US$415 million of US$911 million 2005 commitments )

• In 2006, this improved to 62% (US$456 million of US$735 million 2006 commitments )

• Most untied aid came from multilateral partners Indicator 9: Use of Common Arrangements or Procedures

• How much ODA did you disburse in support of initiatives adopting program-

based approaches (PBAs)?

Working Continually on Mutual Accountability: Highlights of the N-12 21 February 2008 Joint GOP-DP Meeting on Harmonization

Target for 2010: 66% of aid flows are provided in the context of PBAs Indicator 10a: Joint Missions to the Field

• How many donor missions to the field were undertaken?

Number

Of Missions

(a)

Coordinated Missions

(b)

Ratio (b/a)

2005 315 70 22%

2006 274 55 20% Target for 2010: 40% of donor missions to the field are joint Indicator 10b: Joint Country Analytic Work

• How many analytic works did you undertake?

Number of Works

(a)

Coordinated Works

(b)

Ratio

(b/a)

2005 59 16 27% 2006 50 12 24%

Target for 2010: 66% of country analytic work is joint. Indicator 11: Quality of Country Performance Assessment Framework

• National Poverty Monitoring System – quality and availability of poverty-related data is improving

• Community-based Poverty Indicators Monitoring System – involves communities and local governments in provision of data and monitoring

• Micro Impacts of Macroeconomic Adjustment Policies - Community-based Monitoring System (MIMAP-CBMS) – pilot tested in 17 provinces

• Socio-Economic Report – details status of the MTPDP

Direct Budget Support

(a) (US $ M)

Other PBAs

(b) (US $ M)

Total Aid

Flows (c)

(US $ M)

Ratio [(a+b)/c]

2005 $175 $22 $2,103 9% 2006 $750 $51 $1,981 40%

Working Continually on Mutual Accountability: Highlights of the N-13 21 February 2008 Joint GOP-DP Meeting on Harmonization

Indicator 12: Availability of Mechanisms for Mutual Assessment of Progress

• Philippine Development Forum – Government mechanism for facilitating substantive policy dialogue among country’s development stakeholders

• Mechanisms to strengthen partnership with Development Partners – ODA Act of 1996 – ODA Programming meetings – Portfolio Reviews on project implementation – TWG meetings using Shared Results Framework

In summary, the Philippines’ Scorecard (on the 12 indicators)

Indicators 2005 Baseline

2006 Progress

2010 Target

1 Ownership – Operational PRS - - Yes

2a Quality of PFM systems - - -

2b Quality procurement systems

- - -

3 Aid reported on budget 26% 32% 85%

4 Coordinated capacity development

77% 68% 50%

5a Use of country PFM systems (percent of aid)

74% 55% 83%

5b Use of country procurement systems (percent of aid)

37% 29% 58%

6 Parallel PIUs 77 82 26 7 In-year

predictability 19% 56% 60%

8 Untied aid - - - 9 Use of program-

based approaches

9% 40% 66%

10a

Coordinated missions 22% 20% 40%

10 Coordinated 27% 24% 66%

Working Continually on Mutual Accountability: Highlights of the N-14 21 February 2008 Joint GOP-DP Meeting on Harmonization

b country analytical work

11 Sound performance assessment framework

- - Yes

12 Reviews of mutual accountability

- - Yes

Director Planta also reported that a Country Level Evaluation is being carried out by a Team of Practitioners in the field of aid effectiveness. The first reported is expected to be submitted by 01 March 2008 and subsequently to be presented in Ghana in September 2008. Open Forum During the Open Forum, Mr. Tom Crouch (ADB) noted that progress has been made in Philippines in implementing the Paris Declaration (PD) and expressed support to the Philippine Government in its commitments to the PD. Ms. Olga Caday-Asana (KfW) noted that score on Joint Country Analytic Work have gone down from 27% (2005) to 24% (2006) and inquired on the intended strategies to meet the targets. She also sought clarification on Indicator 9 (Use of program-based approaches) whether it is the government policy to use program-based approach (PBA) in the managing of ODA. Usec Tan (DOF) clarified that as a policy, PBAs are being encouraged but also indicated there are project type approach interventions. He observed that the results of the baseline study provided the picture on the extent of the DPs adoption and support of country systems. He indicated that recommendations in improving the scores on the 12 indicators will taken seriously, as part of the discussions during the Philippine Development Forum (PDF) Synthesis/Summary In summary, the participants noted the achievements and challenges in Enhancing Aid Effectiveness in the Philippines. The achievements, so far include the continuing Philippine Development Forum, the harmonization of country systems streamlined and extensively supported by the development partners as well as the promotion of the results-based orientation. The continuing partnership of GOP and Development Partners will also be continually pursued in sustaining the efforts we have been started in such areas as procurement, PFM particularly with the use of auditing system in accordance with the International Standards of Auditing (ISA),

Working Continually on Mutual Accountability: Highlights of the N-15 21 February 2008 Joint GOP-DP Meeting on Harmonization

streamlining support system for EIA, promote transparency in ECC, use of LAR Roadmap, and firm support in the implementation of the OPIF. The challenges and next steps that were highlighted in the presentation and discussions were as follows:

1. Finalization of the IRR-B (Harmonized Rules on Foreign Funded Projects) of RA 9184;

2. Integrate OPIF in e-NGAS/Budget System, including Performance Audit; 3. Installation of a results-based monitoring and evaluation (RBME) system; 4. LGU Involvement in the improvement in the Environmentally Critical Areas

Information System; application of the Standard Land Valuation Methodology; Use of Harmonized GAD Guidelines; and

5. Improve result of the succeeding surveys in compliance with the PD commitments

Closing Statement Usec Tan indicated the need to speed up the processes in the areas where the Philippines are making good progress. The DPs could also continue to provide better support and assistance in pushing these initiatives that the GOP is leading towards greater improvements in aid effectiveness. Efforts in mainstreaming, harmonizing and streamlining the country systems will continue including results-based management (RBM) through the Organizational Performance Indicator Framework (OPIF). He also stressed the importance of capacity building in support to the adoption and application of the country systems.

Mobilizing Existing Capacities in Delivering Results: Actual Consultants’ Inputs O-1

Appendix O - B Mobilizing Existing Capacities in Delivering Results: Actual Consultants’ Inputs

Details of Consultants’ Inputs F

39 (as of 30 April 2008)

# of Person-Months Components/

Consultants’ Name Consultants’ Expertise TA Estimate Actual

NTP Start Date

(dd/mm/yy)

End Date of Contract

dd/mm/yy) Part A – Overall Support to Harmonization 1. L.T. Abuyuan Results-Based Management (RBM) 5 8.50 01/03/06 30/04/08 2. R.N.B. Sicad Project Management 12 17.00 01/03/06 30/04/08 Part B-1: Procurement Procurement (Intl) 6 3. C. Ravanes Procurement for LGU 40 6 1.00 26/03/07 30/11/07 4. R. Bicol Procurement for LGU 3.00 01/10/07 31/12/07 5. R Polestico Procurement (Training) 1.23 28/05/07 30/11/07 Part B-2: Financial Mgt & Audit 6. E. Dalman PFM Audit (Intl) 6 6.00 25/10/06 30/11/07 7. E. Diaz PFM Accounting 6 6.00 09/11/06 30/11/07 Part C: Performance-based Budget Processes OPIF F

41 (Intl) 2 0.00 8. A. Brillantes OPIF Specialist 3 3.17 26/03/07 15/08/07 9. J. Galveztan OPIF Specialist 3 2.97 21/03/07 31/12/07 10. R. Quieta Deceased-6/07 OPIF Specialist 3.00 21/03/07 15/08/07

11.L.T. Abuyuan RBM Phase 2 (OPIF Manual Preparation) 3.50 01/09/07 30/04/08

Part D-1: Project Quality–Environment

12. A. Porras Social Safeguards (Environment) Specialist 2.50 28/06/06 31/01/07

13. R. Garcia EIA Specialist 4 3.00 02/05/07 30/09/07 14. M. Botengan IEC Specialist 2.00 07/05/07 30/11/07 15. E. Miraflores EIA IT Specialist 4.00 02/05/07 31/10/07 Part D-2: Project Quality –GAD 16. J. Illo GAD Specialist 3 4.00 17/07/06 30/11/07 Part D-3 Project Quality – LAR 17. M. Rollolazo Social Safeguards (LAR/IR) 6 2.50 31/07/06 15/03/07 18. F. Cuervo Land Valuation 2.00 15/05/07 17/10/07 19. C. Arce Advocacy & Com 5.17 15/05/07 31/01/08 Subtotal - International 14 6.00 Subtotal - Domestic 48 74.54 TOTAL 62 80.54

39 Positions of international Consultants are indicated as such (Intl) while all others are domestic

Consultants. 40 Local Government Unit (LGU) 41 Organizational Performance Indicator Framework (OPIF)

Details of Consultants’ Inputs O-2

Appendix O.1 - BDetails of Consultants’ Inputs

Details of Consultants’ Inputs F

42

Contract Duration CY 2006 CY 2007 CY 2008 COMPONENTS/CONSULTANT’S

EXPERTISE

# of Person-Months / Contract

Start Date End Date J F M A M J J A S O N D J F M A M J J A S O N D J F M A M

Ave. Working Days /

Month F

43 Part A – Overall Support to Harmonization 1. Results-Based Management 8.5 01/03/06 30/04/08 7.19 2. Project Management 17.0 01/03/06 30/04/08 14.38

Part B-1: Procurement 3. Procurement (Int’l) 0.0 4. Procurement 1.0 26/03/07 30/11/07 2.68 5. Procurement 3.0 01/10/07 31/12/07 22.00 6. Procurement (Training) 1.23 28/05/07 30/11/07 4.44 Part B-2: Financial Management & Audit 7. PFM – Audit (Int’l) 6.0 25/10/06 30/11/07 10.08 8. PFM – Accounting 6.0 09/11/06 30/11/07 10.35 Part C: Performance-Based Budget Processes 9. OPIF (Int’l) 0.0 10. OPIF 3.17 26/03/07 15/08/07 14.68 11. OPIF 2.97 21/03/07 31/12/07 7.03 12. OPIF (Deceased – June 2007) 3.0 21/03/07 15/08/07 NA 13. OPIF (Manual Preparation) 3.5 01/09/07 30/04/08 9.62

42 Positions of international Consultants are indicated with (Int’l), otherwise all others are domestic Consultants. 43 22 working days per month

Details of Consultants’ Inputs O-3

Contract Duration CY 2006 CY 2007 CY 2008 COMPONENTS/CONSULTANT’S

EXPERTISE

# of Person-Months / Contract

Start Date End Date J F M A M J J A S O N D J F M A M J J A S O N D J F M A M

Ave. Working Days /

Month F

43 Part D-1: Project Quality at Entry – Environment 14. Social Safeguards (Environment) 2.5 28/06/06 31/01/07 7.86 15. EIA Specialist 3.0 02/05/07 30/09/07 13.2 16. EIA EIC Specialist 2.0 07/05/07 30/11/07 6.52 17. EIA IT Specialist 4.0 02/05/07 31/10/07 14.67 Part D-2: GAD Specialist 18. GAD Specialist 4.0 17/07/06 30/11/07 5.03 Part D-3: Project Quality at Entry – LAR 19. Social Safeguards (LAR/IR) 2.5 31/07/06 15/03/07 8.46 20. Land Valuation 2.0 15/05/07 17/10/07 8.8 21. Advocacy & Communication 5.17 15/05/07 31/01/08 13.38

Subtotal – International 6.0 Subtotal – Domestic 74.54 TOTAL 80.54

Active Participation of Counterpart GOP Officials and Personnel: P-1 List of Members of the HC, TWGs and ADB-TA Team

Appendix P - BActive Participation of Counterpart GOP Officials and Personnel: List of Members of the HC, TWGs and ADB-TA Team

Members of the Harmonization Committee (HC), Technical Working Groups (TWGs) and ADB-TA Team

Harmonization Committee (HC)

1. Undersecretary Roberto B. Tan (DOF) Chairman 2. Deputy Director-General Rolando G. Tungpalan (NEDA) Co-Chair 3. Undersecretary Laura B. Pascua (DBM) Member 4. Assistant Commissioner Emma M. Espina (COA) Member 5. Assistant Commissioner Carmela S. Perez (COA) Member

HC Technical Working Group (HC/TWG)

1. Director Stella C. Laureano (DOF) 2. Director Roderick M. Planta (NEDA) 3. Director Nora C. Oliveros (DBM) 4. Ms. Alissa P. Santiago (DOF) 5. Ms. Sharon P. Almanza (DOF) 6. Ms. Corazon C. Garcia (NEDA) 7. Ms. Violeta S. Corpus (NEDA) 8. Ms. Rosalina G. Almendral (NEDA) 9. Ms. Marlene R. Vinluan (NEDA) 10. Ms. Mercedes P. Navarro (DBM) 11. Ms. Teresita C. Madamba (NEDA – involved during start-up phase)

Technical Working Group: Procurement/GPPB-TSO

1. Executive Director Ruby U. Alvarez 2. Deputy Executive Director Emiluisa C. Penano 3. Atty. Kit Magsico 4. Ms. D. Lejos 5. Ms. Joy Beslig 6. Mr. Andy Matula 7. Atty. Sygrid Promentilla (involved during start-up phase)

Technical Working Group: Public Financial Management (PFM)/COA

1. Director Marieta M. Lorenzo 2. Director Bato S. Ali, Jr 3. Director Rosicar E. Escober 4. Director Nestor Montalbo

Active Participation of Counterpart GOP Officials and Personnel: P-2 List of Members of the HC, TWGs and ADB-TA Team

5. Assistant Director Cecilia B. Camon 6. Ms. Myrna K. Sebial 7. Ms. Clarita S. Nadonga

Technical Working Group: Performance-Based Budget/Organizational Performance Indicator Framework (OPIF)/DBM

1. Director Nora C. Oliveros 2. Director Ricalinda N. Adriatico 3. Director Luz Cantor 4. Director Gil Montalbo 5. Director Art Bumatay 6. Director Darlene P. Casiano 7. Ms. Mercedes Navarro 8. Ms. Ces Mirando 9. Ms. Vilma Gorospe

Technical Working Group: Project Quality at Entry – Environment (EMB/DENR)

1. Director Julian Amador 2. Director Ely Ouano 3. Engr. Esperanza A. Sajul 4. Engr. Pura Vita G. Pedrosa 5. Engr. Elsie P. Cesar 6. Engr. Jennifer A. Gappe 7. Assistant Director Gloria Arce – involved during start-up phase) 8. Mr, Reynaldo Alcances (deceased – involved during start-up phase)

Technical Working Group: Project Quality at Entry – Gender & Devt (GAD) (SDS/NEDA)

1. Director Erlinda Capones 2. Ms. Marites Lagarto 3. Ms. Aleli Cortez 4. Mr. Allan Millar 5. Ms. Rhodora Tiongson

Technical Working Group: Project Quality at Entry- Land Acquisition and Resettlement (LAR)

1. Deputy Secretary General Consuelo Suello (HUDCC) 2. Undersecretary Percival Chavez (PCUP) 3. Mr. Mars Sarmiento (UARPMO/HUDCC) 4. Ms. Marie Antonette Manalo-McStay (HUDCC) 5. Director Roderick Ibanez (NHA)

Active Participation of Counterpart GOP Officials and Personnel: P-3 List of Members of the HC, TWGs and ADB-TA Team

6. Director Corazon Davis (DENR) 7. Ms. Alma Valenciano (NHA) 8. Ms. Benita Regala (NHA) 9. Ms. Visitación Alobba (NHA) 10. Ms. Belen Alanzalon (PCUP) 11. Mr. Randy Remonte (DND) 12. Representative(s) from Ateneo/ICSI 13. Director Joy Chaneco (HUDCC – involved at start-up phase) 14. Ms. Mylene Rivera (UARPMO - involved at start-up phase) 15. Director Lina Isorena (DOF/NTRC - involved at start-up phase 16. Director Norberto G. Malvar (DOF/BLGF - involved at start-up phase) 17. Mr. Rainier D. Balbuena (LMB/DENR - involved at start-up phase)

ADB-PhCO TA Team

1. Mr. Joven Balbosa (Project Officer) 2. Ms. Carmie Ricerra (Associate Project Analyst) 3. Ms. Leah Patian (Administrative Assistant) F

44 4. Ms. Ena Manansala (Administrative Assistant) F

45 5. Ms. Donna Lacuna (Sr. Administrative Staff) F

46 6. Ms. Jane Barcenas (Staff Consultant) F

47 7. Mr. Sherwin Arriola (Tempo Staff) F

48 8. Mr. Vincent Aristoreles (Tempo Staff) F

49 9. Ms. Sheila Molvizar (Tempo Staff) F

50

44 Provided support in latter part of TA implementation 45 Provided support in mid-implementation phase of the TA 46 Provided support during planning and start-up phase of the TA 47 Provided assistance during planning and start-up phase of the TA 48 Provided assistance during latter part of TA implementation 49 Provided assistance during mid-implementation phase of the TA 50 Provided assistance during start-up phase of the TA

Delivering on Results: Achievement of Outputs & Outcomes Q-1

Appendix Q - BDelivering on Results: Achievement of Outputs & Outcomes

Preliminary Assessment on the Achievement of Outputs and Outcomes (Draft – 30 April 2008)

Results Performance Targets/Indicators

Planned Actual Remarks

Impact • Improved development

effectiveness, reduced transaction costs leading to higher levels of public investments, and poverty reduction through improved processing and implementation of development programs

• More resources and

budget allocated to pro-poor public investments; lower or no attrition of proposed projects; and improved implementation of development projects

Outcomes – Part A

• Part A. Sustainable implementation of the Paris Declaration at the country level

• Harmonization action plan and tracking mechanism functioning

• Organized and provided updates during the Annual Joint GOP-Development Partners Meeting on Harmonization (2006, 2007 & 2008)

• Baseline Study (2005 & 2006) completed, as basis for tracking mechanism on the implementation of the harmonization action plan and 2nd Survey Round (2007) on the indicators of the Paris Declaration completed

• Supported the Conduct of Country Level Evaluation (CLE) in preparation for the Third High Level Forum (HLF-3) in Accra

Outputs – Part A

Part A • Government’s achievements

• Accomplishments,

Major outputs completed were as follows:

Preparation and Implementation of a more

Delivering on Results: Achievement of Outputs & Outcomes Q-2

Results Performance Targets/Indicators

Planned Actual Remarks

on harmonization, harmonization action plan, and monitoring framework

action plan, and monitoring framework prepared

• Harmonization Stocktaking Report Prepared • GOP Harmonization Agenda Defined and presented to

Joint GOP and DPs Consultation Meeting on the Paris Declaration

• GOP Action Plans Prepared 2007-2010 (by all TWGs) • Baseline Study (2005/2006) on indicators of GOP’s

commitment to Paris Declaration was completed. • 2008 Survey on the Indicators of the Paris Declaration

conducted and completed • Overall management and support provided in the

implementation of 4 components involving 7 TWGS in 6 GOP agencies and 19 individual Consultants as well as coordination with Development Partners (DPs).

Major activities undertaken: • Stocktaking and Inception Workshop with all

implementing agencies undertaken • Integrated coordination mechanism established through

the Harmonization Committee (HC) on all matters related to the Paris Declaration and Managing for Development Results

• Indicators on GOP’s commitment to Paris Declaration were identified, baseline data established and follow-up survey completed.

• Nine (9) Harmonization Committee (HC) meetings organized and undertaken

• Three (3) Annual Joint GOP-DP Meeting on Harmonization organized and conducted (2006, 2007 & 2008)

• Overall management and support provided in the implementation of 4 components (with 7 subcomponents), involving 7 TWGS in 6 GOP agencies

detailed Advocacy Plan, including development of harmonization website (DOF/harmonization) would be pursued under a separate TA with funding from the GOP funds generated from Interest Differential Fund (IDF) of KfW loan proceeds

Delivering on Results: Achievement of Outputs & Outcomes Q-3

Results Performance Targets/Indicators

Planned Actual Remarks

and 19 individual Consultants as well as coordination ADB & with other Development Partners (DPs).

• Prepared Project Completion Report on the

implementation of the whole Technical Assistance

Outcomes – Part B-1: Procurement

• Part B.1 - Improved and harmonized Government and development partners procedures and guidelines for procurement

• Speedier and more transparent procurement procedures

Early indications on sustainability of a more effective procurement system • Improved capacity of LGU personnel in procurement

processes resulting from capability building • Broader support of LGU Officials resulting from

consultations undertaken in the preparation of Procurement Manual for LGUs

• Continued partnership of GOP and DPs in upgrading the Philippine Government Electronic Procurement System (PhilGEPS)

• Increased level on the use of PhilGEPS by government agencies

Further support needed for the institutionalization of a speedier and transparent procurement process • Preparation of

Harmonized Rules on Foreign Funded Projects (IRR-B)

• Revisiting IRR-A (in line with preparation of IRR-B)

• Finalization and Implementation of Communication Plan consisting of the following: (1) Simplified Barangay Procurement Manuals and Other Training Tools; (2) Accreditation Process for Trainors; (3) Rewards and Incentive System; (4) Conduct of Surveys

• Development of Monitoring Systems consisting of the following:

Delivering on Results: Achievement of Outputs & Outcomes Q-4

Results Performance Targets/Indicators

Planned Actual Remarks

(1) Enhancement of OMES (Database of Procurement Reports); and (2) Updating of Agency Procurement Performance Indicators (from BIS/BLI to CPI)

• Roll-out of PhilGEPS in support to the strengthening of the procurement process.

Outputs – Part B-1: Procurement OUTPUTS COMPLETED

Part B-1 • Report on the rollout of

generic procurement manuals and the professionalization program for procurement practitioners

• Actual reports submitted by consultants; training materials completed; no. of actual training sessions conducted

1. Training Effectiveness Methodology developed with the participation of the interagency Regional Procurement Training Specialists

2. Trainors’ training/orientation conducted on the use of

feedback mechanism in assessing training effectiveness on procurement (10 -13 September 2007) with the participation of 60 Trainors from all the regions

3. Procurement Manual for LGUs (4 volumes) prepared,

printed and distributed, as approved by GPPB after the validation process in consultation with LGU stakeholders( through eight (8) focused group discussions (FGD) and LGU validation workshop

4. Report on Agency Performance Indicators (API) for

LGUs prepared with the participation of selected LGUs 5. Additional (200) copies of Generic Procurement Manual

(GPM) printed and distributed

Additional outputs prepared under the procurement were the following: o Inputs provided to the

preparation of the case study on procurement in the Philippines prepared with Consultants (Agulhas), with support from DFID, ADB, Foreign Ministry of Japan and World Bank; and

o TA concept paper and proposal prepared on the Upgrading of the Philippine Government Electronic Procurement System (PhilGEPs) with GPPB-TSO and WB.

Delivering on Results: Achievement of Outputs & Outcomes Q-5

Results Performance Targets/Indicators

Planned Actual Remarks

Outcomes – Part B-2: Financial Management and Audit

• Part B.2 - Improved and harmonized Government and development partners procedures and guidelines for financial management, and audit

• Speedier and more transparent financial management and audit guidelines

Early indications in place on the achievement of outcome for a speedier and more transparent system on financial management and audit • Identified List of PFM Common Reports (COA, DBM,

NEDA, DOF, BSP, CPBD) that will eliminate redundant reports

• Organized Inter-agency TWG working on the harmonization of PFM processes & reporting

• Recommendations on the Assessment Reports on Accounting & Auditing will be helpful in COA’s improvement initiatives

Outputs – Part B-2: Financial Management and Audit

Part B-2 • Assessment of the

compliance of NGAS with international accounting standards

• Assessment completed

The outputs of the PFM/COA TWG and the Consultant Team were as follows 1. Report on the Assessment of New Government

Accounting System, Part I & II (3 volumes) covering National Government Agencies, Local Government Units (LGUs) and Consolidation for the whole GOP;

2. Report on the Evaluation of the Philippine Audit System;3. Revised Guidelines on the Audit of FAPs using ISA; and4. Action Plan prepared on streamlining and harmonizing

PFM processes within GOP and with DPs The Major Activities were as follows: • PFM Harmonization Workshop conducted last 29-31

Jan 2007 (with representatives from 14 agencies); areas

Priority follow-up activities to be pursued would included the following: On Accounting - o Interface of COA’s Annual

Financial Report (AFR) & DBM’s Budget of Expenditures and Sources of Financing (BESF) which are both submitted to Congress

o Update accounting standards and training on International Public Sector

Delivering on Results: Achievement of Outputs & Outcomes Q-6

Results Performance Targets/Indicators

Planned Actual Remarks

for harmonization identified (simplification of reporting forms, clarifying conflicting terminologies, etc). Small Working Group (COA, DBM, BTR, NEDA) organized to pursue harmonization work

• PFM Harmonization Mtg. of GOP & Devt. Partners last

March 20, 2007 – reported on harmonization efforts GOP and will also consider the PFM Harmonization Agenda proposed by ADB, JBIC & WB (in 2004)

• Draft of Revised Guidelines on the Audit of FAPs ,

together with the other outputs on PFM harmonization presented to and discussed with COA officials and selected auditors last 17 Aug 2007.

• Presentation of Report on Assessment of the New

Government Accounting System to COA officials and selected auditors last August 23, 2007 at COA.

• Findings and Recommendations on Audit of FAPs as

well as on NGAS & e-NGAS presented to representatives of GOP oversight agencies (DBM, DOF-BTR/BLGF, CPBO, NEDA, etc) and DPs (ADB, JBIC & WB) last 11 September 2007 in COA

Accounting Standards (IPSAS) and International Financial Reporting Standards (IFRS)

o Integrate Organizational Performance Indicator Framework (OPIF) in NGAS/e-NGAS/Budget System

On Auditing - o Capability Building on

Audit of FAPs.(Training of about 40 COA personnel on the Audit of FAPS will be pursued after the TA closing date and will be possibly funded by DOF/HC using the Interest Differential Fund (IDF) of KfW loan proceeds)

o Integration of OPIF in Performance Audit

o Update procurement audit procedures and prepare audit manual, inclusive of training component

o Update forensic audit procedures and prepare audit manual, inclusive of training component

Delivering on Results: Achievement of Outputs & Outcomes Q-7

Results Performance Targets/Indicators

Planned Actual Remarks

Outcomes – Part C: Performance-Based Budgeting

• Part C. Strengthened performance-based budgeting and increased capacities of DBM to mainstream performance-based budgeting processes (OPIF) and to facilitate processes to strengthen the performance orientation of selected OPIF agencies

• Readiness assessment tool for managing for development results at department level tested and results-based management (RBM) tools for improving organizational performance developed and tested in 2 pilot departments

• Capabilities of DBM

and department officials to apply RBM readiness assessment and management tools in line departments strengthened

• Cascading of the OPIF to more agencies as well as the preparation of the OPIF Book and OPIF Manual (as indicated in DBM’s Work Program) were considered by DBM as more appropriate instruments for sustained efforts in improving performance-based processes through the OPIF.

• Cascading of OPIF into additional agencies was pursued by DBM in lieu of the preparation of Readiness Assessment of tool in for DBM officials and personnel on application of OPIF and RBM tools (originally to be piloted in 2 agencies – DBM & DSWD)

Outputs – Part C: Performance-Based Budgeting OUTPUTS COMPLETED

Part C • Training manuals for

agencies; workshops on EERs and OPIF; manual on output-focused MFOs

• Information disseminated; training conducted; training manuals completed; workshops conducted

The outputs were as follows: o Installed a performance-based budget system (OPIF) in

21 agencies/offices through a series of workshops in the preparation of logical framework and performance indicators as part of 2008 budget preparations

o Draft OPIF Manual revised; o Draft OPIF M&E Framework prepared; o Fifty (50) personnel trained on Organizational

Performance Indicator Framework (OPIF); and

Follow-up Activities Needed to strengthen RBM and OPIF as tools in improving performance-based planning and budgeting • OPIF Roll-out to State

Universities/Colleges (SUCs) and to Agencies

Delivering on Results: Achievement of Outputs & Outcomes Q-8

Results Performance Targets/Indicators

Planned Actual Remarks

o OPIF Roadmap updated The activities were as follows: • Workshops conducted with DBM and 21

agencies/offices in the preparation of logical framework and performance indicators as part of 2008 budget preparations

• OPIF Peer Review and Assessment (June 5-6, 2007) undertaken by DBM which defined follow-up activities to strengthen capacity of DBM personnel as well as to institutionalize OPIF within the GOP budget process.

• Design parameters on the OPIF Monitoring Framework

was presented and discussed with DBM OPIF Team last 28 August 2007

• Second Draft on OPIF Manual Prepared incorporating

feedback from DBM Directorate generated during the 28 August 2007 OPIF Workshop

• Capability Building Workshop on OPIF conducted with

the participation of about 50 DBM Personnel last March 5-7, 2008

• Workshop on the OPIF Roadmap conducted during 28-

29 April 2008 with the support of senior officials of DBM

with fiscal autonomy (FAAs)

• Development of MFO Costing Methodology

• Design and install a

Results-Based Monitoring and Evaluation (RBME) consisting of Readiness Assessment, Agency Performance Rating System, Program Assessment Rating Tool (PART) and Performance Incentive Scheme

• Advocacy/Communication

Strategy on the following: (1) Shift to an OPIF-based budget structure; and (2) possible legislation

• Continue capacity building

initiatives on performance based

Outcomes – Part D-1: Improving Project Quality at Entry – Environment

• Part D.1 - Streamlined and

• Revised and easier

• Strengthening the application of EIAs and deepening common procedures for projects

Follow-up Activities Needed to further

Delivering on Results: Achievement of Outputs & Outcomes Q-9

Results Performance Targets/Indicators

Planned Actual Remarks

improved project processing procedures enhancing quality at entry of projects, especially in environmental impact assessment (EIA) system

guidelines environment completed and implemented

• Systematizing environmental information generated

through the EIA country system as a prelude to the following: (a) the application of common approaches for “strategic environmental assessment” at the sector and national levels; and (b) the development of a specialized technical and policy capacity necessary for environmental analysis and for more effective enforcement of legislation

Early indications already in place on achievement of outcome on the implementation of streamlined EIA Guidelines • Facilitated ECC review and issuance resulting from

clarification roles and responsibilities of EMB relative to other agencies

• Promoted transparency in ECC requirements and

application with web-base database support on EIA system

• Advocacy effort integrated as part of the strategy in

gaining broader support from the general public, national government agencies, LGUs and industry groups

• DENR Memorandum Circular (MC 2007-08 dated 13

July 2007) issued clarifying the use of the EIA recommendations as a project/program planning tool and input to the permitting requirements of other government agencies.

strengthened Sustainability • Implementation of a

Systematic IEC Campaign with the guidance of the IEC Plan and Strategy Developed under the TA with the LGUs and other GAs as priority sectors

In the past, a major factor in the unsustainability of initiatives was the lack of systematic IEC campaign. With the implementation of a well-thought of IEC plan and strategy, potential for sustained improvements is maximized

• Capacity building for LGU

personnel needed on the implementation of the streamlined EIA in partnership with EMB/DENR

• Support from

Development Partners (DPs) to EMB/DENR in implementing the

Delivering on Results: Achievement of Outputs & Outcomes Q-10

Results Performance Targets/Indicators

Planned Actual Remarks

• Revised EIA Procedural Manual (per EMB MC 2007-02 dated 21 Aug. 2007) w/ more user-friendly features: (a) clearer & rationalized guidelines on project screening, ECC application & monitoring requirements, streamlined procedures; and (b) more decision criteria/guidance for standardization

• Streamlined EIA System served as common framework

on the technical assistance on harmonization work with ADB and WB as well as other bilateral agencies such as CIDA

• The rationale and salient features of the streamlined EIA

Procedural Manual was presented (18 Sept 2007) to the Philippine Chamber of Commerce and Industry (PCCI) upon their invitation and the participants were generally pleased with the procedural updates. (PCCI requested for a copy of the Manual).

• EMB/DENR utilized its budget in the initial printing and

reproduction of the draft EIA Procedural Manual and other related expenses

streamlined EIA Process

Outputs – Part D-1: Improving Project Quality at Entry – Environment OUTPUTS COMPLETED

Part D-1 • Report on identifying the gap

in the EIA between the Government and development partner systems; capacity building to EMB

• Report completed

1. Preliminary Assessment Report prepared under ADB RETA on Strengthening Country Safeguard Systems (CSS) with the support from ADB TA and RETA Teams

2. EIA Process Manual updated and printed, including

flowchart & Annexes (with enabling Memorandum Circular Issued last 21 August 2007)

3. Four (4) IEC Print Materials developed with leaflet for

Follow-up activities would be as follows: o LGU information drive on

the streamlined EIA with development of orientation module, conduct of fora and continuous coordination with LGUs

Delivering on Results: Achievement of Outputs & Outcomes Q-11

Results Performance Targets/Indicators

Planned Actual Remarks

the general public (printed and disseminated) while primers for LGUs, GAs and industries were prepared, printed and disseminated

4 Streamlining Support Systems recently developed for

environmental assessment includes the following: (a) online screening for project coverage under the Philippine EIS System; (b) online application for Certificate of Non-Coverage (CNC) under the Philippine EIS System; and (c) Online guidance on the procedures and requirements under the Philippine EIS System including downloadable report forms and checklists for system standardization; and (d) Database infrastructure for easing the collection and collation of environmental data that can later be used to simplify requirements for project proponents.

5. Developed on-line web-based support/guidance system

on the EIS System Procedures including online project screening process (launched last 8 Nov 2007)

6.Joint ADB & WB Report prepared on the Philippine EIA

System (printed and distributed by WB) Major activities, carried out by the EIA TWG (created through a Department Order), were as follows:

3 Consultation meetings and workshops (in regional centers) conducted on the EIS System Streamlining Directions, updating of the EIA Manual and subsequent development IEC materials as well as on the EA Query System on the ECC application and on the support system of the EA. (22-24 May 2007 in Q.C; 04-06 June

o Updating and continuous

improvement of environmentally critical areas (ECA) information system, environmental stressor identification support system and environmentally critical project information system.

Delivering on Results: Achievement of Outputs & Outcomes Q-12

Results Performance Targets/Indicators

Planned Actual Remarks

in Baguio; 13-15 June in Davao; & 11 Oct 2007 in Quezon City)

Piloting of the Scoping Guidelines in the draft Procedural Manual in the proposed Bethlehem Nickel Mining Project of Tesoro Mining and Dev’t Inc. in Narra, Palawan (27 July2007)

Consultation meeting and workshop conducted with EMB Personnel (Central and Regional Offices) on the draft EIA Process Manual, the development of EA Query System on the ECC application and on the support system of the EA (August 8, 2007 Q.C).

Focused Group Discussion (FGD) with the EMB Regional Personnel on EIS System Streamlining IEC Plan and Strategy including the Training Module for LGUs to take into consideration regional concerns (August 9, Q.C)

Pilot LGU Training w/ LGU representatives from Visayas and Mindanao (23-24 August 2007, Cebu)

Orientation Workshop on the Philippine EIA System Updates for Govt Agencies (1st Batch, DENR, QC) last 29 August 2007

Pre-testing Workshop conducted with various stakeholders on the different (4 versions) EIA Primer (DENR, QC) and on the Online Query System last 6 Sept 2007, Q.C

Delivering on Results: Achievement of Outputs & Outcomes Q-13

Results Performance Targets/Indicators

Planned Actual Remarks

Outcomes – Part D-2: Improving Project Quality at Entry – Gender and Development (GAD)

• Part D.2- Streamlined and improved project processing procedures enhancing quality at entry of projects, especially in gender and development (GAD)

Revised and easier guidelines on gender guidelines institutionalized in all agencies

Early indication already in place on achievement of outcome of completion and implementation of revised GAD Guidelines.

2nd Edition of Harmonized GAD Guidelines already prepared and presented to the ODA GAD Network (composed of GOP and DPs)

• Some participants to the Trainors’ Training from

Agencies and the Regions were able to conduct echo training utilizing the 5% allocation for GAD related activities.

• Monitoring of gender-responsiveness of ODA

programs and projects using the Harmonized GAD Guidelines provided inputs to the 2007 NEDA Report on GAD responsiveness of projects and programs of Development Partners (DPs), which was disseminated to the DPs.

Follow-up and support still needed for institutionalization of GAD concerns in project development, implementation and M&E. • Further training to

personnel of national government agencies, SUCs and LGUs on social analysis, including GAD in project development

• Tracking on integration of

GAD concerns and improvements on quality of project preparation as well as its contribution towards achievement of objectives of improving living situation of project target beneficiaries.

Outputs – Part D-2: Improving Project Quality at Entry – Gender and Development (GAD) OUTPUTS COMPLETED

• Workshops and training on

GAD guidelines; standardized manual in applying GAD guidelines in project preparation and evaluation

• Report completed;

workshops and training conducted

• 5 trainors' sessions conducted on use of Harmonized GAD Guidelines with participation of 142 staffs from national and regional agencies as well as State Colleges & Universities (SUCs) & NGOs

• Ongoing monitoring visits and evaluation of extent of

use of Harmonized GAD Guidelines in Project

Follow-up activities towards enhancing capacity of agencies and other organizations on the use of the use of Harmonized GAD Guidelines are as follows:

Delivering on Results: Achievement of Outputs & Outcomes Q-14

Results Performance Targets/Indicators

Planned Actual Remarks

Development, Implementation, M&E • Harmonized GAD Guidelines updated based on

comments and feedback generated during the Trainors’ Training and other consultations

• Revision of Harmonized Gender and Development

Guidelines for Project Development, Implementation, Monitoring and Evaluation for subsequent printing of 2nd Edition.

• Revised draft GAD Harmonized Guidelines presented to

the ODA GAD Network for review and approval • Draft training manual on GAD Harmonized Guidelines

being finalized • Final report/ documentation on the conduct and

effectiveness of Trainors’ training on the use of the harmonized GAD Guidelines

• Printing of 2nd Edition of Harmonized GAD Guidelines

Completed

Follow-up and support still needed for institutionalization of GAD concerns in project development, implementation and M&E. • Continuously provide

capacity building for pool of trainors to meet increasing demand for training on the use of the HGDG

• Continuing capacity

development on the use of the HGDG (NEDA, national and regional line agencies)

• Follow-up evaluation and

monitoring on effectiveness of trainings on enhancing project quality at design, implementation, monitoring and evaluation.

Outcomes – Part D-2: Improving Project Quality at Entry – Land Acquisition and Resettlement (LAR)

• Part D. Streamlined and improved project processing procedures enhancing quality at entry of projects,

Revised and easier guidelines on LAR completed

Early indications towards the achievement of outcome on the harmonized processes on LAR/IR • Promoted interagency work with strong GOP ownership

Delivering on Results: Achievement of Outputs & Outcomes Q-15

Results Performance Targets/Indicators

Planned Actual Remarks

especially in land acquisition and resettlement (LAR)

and agency participation in the development of the land valuation manual and in the formulation of the LAR Roadmap

• LAR Roadmap served as the reference in further

coordination work by the GOP and DPs (ADB, WB and AusAID) towards harmonization of policies and procedures on LAR/IR of GOP and DPs

• Draft Joint Circular and an Executive Order on the

adoption and implementation of the land valuation methodology of government-owned lands for housing and resettlement purposes are being pursued by HUDCC, the Inter-agency TWG (NHA, PCUP, DENR, NEDA, etc)

Outputs – Part D-2: Improving Project Quality at Entry – Land Acquisition and Resettlement (LAR) OUTPUTS COMPLETED

• Report on proposed

amendments to RA8974, with explanations; draft IRR; advocacy plan for the amendments to RA 8974

• Report completed; IRR

drafted; advocacy plan prepared

Major Outputs Completed • Preliminary LAR Assessment Report prepared under

ADB RETA on Strengthening Country Safeguard Systems (CSS) with the support from ADB TA and RETA Team.

• Prepared Information Education and Communication (IEC) materials composed of the following: (a) PIAC Guide on Post Proclamation Process and Standard Valuation Methodology; (b) Quick-reference brochure on the Standard Valuation Methodology; (c) Quick reference brochure on PIAC roles, responsibilities and linkages; (d) CD-ROM on LAR-related studies; and (e) TA-LAR Newsletter for sustained awareness of stakeholders and development partners on Project progress.

The LAR-TWG opted to pursue the administrative approach (instead of pursuing the amendment of RA 8974) on tackling the issue of land valuation considering the following: (a) pursuing the legislative approach would require enormous efforts and resources without assurance of success as experienced in previous undertaking supported by the Regional Technical Assistance (RETA)

Delivering on Results: Achievement of Outputs & Outcomes Q-16

Results Performance Targets/Indicators

Planned Actual Remarks

• Roadmap on LAR prepared integrating concerns and recommendations of inter-agency LAR TWG and integrated into work program of HUDCC, NEDA and other GOP Agencies & Development Partners (e.g ADB, WB, etc)

Major Activities undertaken • Consultation meetings conducted by HUDCC and the

Consultants on the development of land valuation methodology, with representatives from DPWH, NHA, PCUP, AFP, NEDA, DENR/LMB, SHFC and the Institute on Church and Social Issues.

• Consultation meetings and validation workshops

conducted with concerned government agencies as well as pilot-testing of methodologies on the proposed land valuation methodology on government lands for housing and/or resettlement sites including community dialogues and capacity-building sessions for local counterparts and target communities on the Post-Proclamation and relocation processes (pilot-testing already completed in the cities of Iloilo, Davao, Baguio, Lipa & Quezon City)

• Consultation meetings & workshops conducted on the

LAR Roadmap/Strategy taking into account the completed ADB Technical Assistance such as RETA 5935 - National Resettlement Policy Enhancement and Capacity Building (2000); and RETA 6285 - Strengthening Country Safeguard Systems (2006), the AusAID-assisted Land Administration and Management Project (LAMP) being implemented by DENR & DOF-BLGF and WB Assessment on the Social Safeguards including Involuntary Resettlement (IR/LAR).

of ADB; (b) the land valuation for all purposes is being tackled by an ongoing AusAID-assisted Land Administration and Management Project (LAMP being spearheaded by BLGF/DOF; (c) lessons learned from previous studies and technical assistance supported by ADB, and WB were also considered by the LAR TWG; and (d) the successful development and pilot testing of a land valuation methodology could possibly generate a “demonstration effect” that could provide some headway in tackling the land valuation concerns through the administrative tool such as an Administrative Order or an Executive Order. (A similar approach that was pursued in the deregulation of the telecom industry).

Delivering on Results: Achievement of Outputs & Outcomes Q-17

Results Performance Targets/Indicators

Planned Actual Remarks

• Draft Joint Circular prepared on the Adoption and

Implementation of the Standard Land Valuation Methodology

Appendix R - BImportance of Institutional Support: Special Order of the DENR on the Creation of an Advisory Panel & TWG to Harmonize Efforts on the Strengthening of the Philippine EIA System

Importance of Institutional Support: Special Order of the DENR on the Creation of an R-1 Advisory Panel & TWG to Harmonize Efforts on the Strengthening of the Philippine EIA System

SPECIAL ORDER NO. 2006-_______

SUBJECT : CREATION OF AN ADVISORY PANEL AND A TECHNICAL WORKING GROUP TO HARMONIZE EFFORTS ON THE STRENGTHENING OF THE PHILIPPINE ENVIRONMENTAL IMPACT ASSESSMENT (EIA) SYSTEM

In line with the need to continuously improve the implementation of the Philippine Environmental Impact Assessment (EIA) System as one of the tools for sustainable development, and to harmonize the on-going Technical Assistance (TA) Projects of the World Bank (WB) and the Asian Development Bank (ADB) to strengthen the Philippine EIA System, an Advisory Panel and a Technical Working Group are hereby created in the DENR. COMPOSITION AND FUNCTIONS: Advisory Panel for the Harmonization of Efforts on the Philippine Environmental Impact Assessment System: Undersecretary for Field Operations - Chair Undersecretary for Environment and Forestry - Co-Chair Undersecretary for Planning and Policy - Member Alternate: Director, Planning and Policy Service Assistant Secretary for Foreign-Assisted

and Special Projects - Member Alternate: Director, Project Operations and Monitoring Service-FASPO Director, Environmental Management Bureau - Member Director, Mines and Geosciences Bureau (MGB) - Member Alternate: Assistant Director, MGB The Advisory Panel shall perform the following functions:

1. Provide guidance in the implementation of the TA project of the World Bank, entitled “Philippine EIS System: A Review of Current Practice, Effectiveness and Efficiency” Project, and the ADB TA project entitled, “Technical Assistance to the Republic of the Philippines for Harmonization and Managing for Results - Environment component.”

2. Provide advice in the adoption of viable recommendations within the DENR to strengthen the Philippine EIA System.

Republic of the Philippines Department of Environment and Natural Resources

Visayas Avenue, Diliman, Quezon City, 1100 Tel. Nos. (632) 929-66-26 to29 · (632) 929-62-52

929-66-20 · 929-66-33 to 35929-70-41 to 43

Importance of Institutional Support: Special Order of the DENR on the Creation of an R-2 Advisory Panel & TWG to Harmonize Efforts on the Strengthening of the Philippine EIA System

3. Review/concur with the assessment report of the TA projects, upon the recommendation of the Technical Working Group, and submit necessary reports to the Secretary.

4. Ensure the harmonized implementation of the WB and ADB TA projects on the strengthening of the Philippine EIA System.

Technical Working Group Director, Environmental Management Bureau - Chair Chief, Environmental Impact Assessment

Division-EMB - Vice-Chair Chief, Policy Studies Division - Member Representative, Protected Areas and

Wildlife Bureau (PAWB) - Member Representative, MGB - Member Chief, Project Monitoring and

Evaluation Division, FASPO - Member The Technical Working Group shall perform the following functions: 1. Review the outputs of the TA projects and provide recommendations to the Advisory

Panel.

2. Participate in the conduct of activities, including, but not limited to meetings, focused group discussions and institutional linkaging with other government agencies.

3. Provide data or information to the Project Teams, as is practicable, in the conduct of data gathering, surveys, and report preparation.

4. Conduct periodic meetings related to the implementation of the TA projects and prepare reports for submission to the Advisory Panel.

The EMB shall provide the technical and administrative support as needed. Expenses incidental to the performance of functions of the Advisory Panel and Technical Working Group shall be charged against FASPO Funds, subject to usual accounting and auditing procedures. This Order shall take effect immediately. ANGELO T. REYES Secretary

Benchmarking the Implementation Process: Good Practices on S-1 Capacity Development (CD)

Appendix S - BBenchmarking the Implementation Process: Good Practices on Capacity Development (CD)

Matrix on Good Practices in Capacity Development (CD) and TA

Implementation Experiences (Features and description, columns 1 & 2, were based on Individual and Multiple Interventions of ADB with Developing Member Countries while column 3 indicates the Related TA Processes) F

51

Good Practice Feature

(1) Description

(2)

As Applied in the Planning and Implementation of the TA on

Harmonization and Managing for Results

(3) Strong local

ownership; local values are respected, self-esteem is fostered.

Key local stakeholders recognize that the project properly reflects their priorities and needs. Consequently, they are fully committed, ensuring the project’s success. The project responds to the way things are done locally. It encourages the local contribution of ideas, knowledge, experience, and skills to project planning and implementation.

a. The TA was implemented under the leadership of the GOP Harmonization Committee (HC) 52 which conducted nine (9) meetings over the 26-month period of TA implementation.

b. All lead GOP TWGs/agencies of all

components exerted strong influence determining the number of Consultants needed, preparation of TOR and the direct supervision of their Consultants (with COA indicating an early preference for such arrangements and followed by EMB/DENR and all the other TWG).

c. Workshops and consultation meetings were

conducted by all the TWGs and Consultant Team in ensuring that ideas, knowledge and experience and skills of stakeholders and counterpart personnel were taken into account and subsequently integrated into the preparation of outputs.

Suitable positive

incentives are present.

Positive incentives and motivating factors generally for participation in the project are established. They are aligned with capacity development (CD) objectives, including those of good governance.

a. All the TWGs were encouraged and prepared their respective work programs in partnership with the Consultant Team, including schedules and budgets, thus helping in the integration of TA activities into their regular activities and ensure the delivery of outputs and achievement of objectives.

b. Adequate financial and logistic support were

provided for workshops and consultation, even in location outside the office, as an

51 Evans, Martin. 2007. Capacity Development in South Asia (Occasional Paper No.1). ADB, Manila, p 20. 52 The HC is composed of the DOF (as Chair), the NEDA (as Co-Chair), with DBM and COA as members.

Benchmarking the Implementation Process: Good Practices on S-2 Capacity Development (CD)

Good Practice Feature

(1) Description

(2)

As Applied in the Planning and Implementation of the TA on

Harmonization and Managing for Results

(3) incentive for counterpart personnel and stakeholders to participate and actively contribute in the discussions and preparation of outputs.

Use is made of existing capacities; external inputs are integrated with national priorities, processes, and systems.

Primary use is made of national expertise, national institutions and organizations are strengthened and social and cultural capital is strengthened. External inputs are provided in response to demand, reflecting national needs and agendas. If national systems are not strong enough, they are reformed and strengthened rather than bypassed.

a. TWGs were organized composed of regular technical personnel as counterparts of the Consultant Teams thus, ensuring that the outputs were relevant to the objective of strengthening the needed country systems, e.g. procurement, PFM, performance-based budget, social (GAD & LAR) and environment (EIA) safeguards.

b. Available national/domestic Consultants, with

relevant experience and qualifications, were mobilized in providing technical assistance in strengthening the country systems and in the overall management of the TA. This approach was of great help in ensuring that the interventions were appropriate to the local context and capacities of agencies (e.g. procurement for LGUs, environment, budget, auditing and accounting) while providing built-in flexibility in the scheduling without incurring cost overruns on the Consultants’ inputs.

c. It was clear to all the TWGs and Consultant

Teams that the objective of the TA was to strengthen the country systems covered in under the TA and thus, these systems were not bypassed but were strengthened.

d. The country system on procurement was

already considered one of the “good international practice”. The case study on the procurement reforms in the Philippines was prepared by DFID with the support of TA on Harmonization and Managing for Results and was presented during the October 2006 Asia Pacific Forum on Aid Effectiveness.

Imported models

are adapted to local requirements and conditions.

“Blueprints” are avoided. Models that work elsewhere are adapted. The emphasis is on voluntary learning based

a. The learning-by-doing approach was applied in establishing capacities of agencies in refining frameworks that were tried in other countries such as performance-based budget processes using the Organizational

Benchmarking the Implementation Process: Good Practices on S-3 Capacity Development (CD)

Good Practice Feature

(1) Description

(2)

As Applied in the Planning and Implementation of the TA on

Harmonization and Managing for Results

(3) on genuine commitment and interest, and recognition that knowledge is acquired not transferred.

Performance indicator Framework (OPIF) and other systems. The OPIF framework evolved from DBM initiative way back in 2006 with the support of a Regional Technical Assistance (RETA) from ADB and then further developed under the TA on Harmonization and Managing for Results as well as the AusAID-assisted PEGR.

b. In the case of land acquisition and

resettlement (LAR), the LAR-TWG attempted to develop methodologies that took into account the “capacity to pay” of beneficiaries on the land valuation of government lands for housing and resettlement. The TWG also prepared the LAR/IR Roadmap in comprehensively addressing the interrelated and complex issues affecting LAR/IR. This Roadmap is continually being pursued by the GOP, even after the completion of the TA with the support of the WB.

Driver for change

and reform leader present.

The project challenges mindsets, power differentials, and vested interests. It seeks the Right balance between driving change and leading reforms that ADB considers to be in stakeholders’ best interests and nurturing local ownership of the changes and reforms.

a. The TWGs prepared action plans as their specific response to the challenge of further strengthening the country systems and in mainstreaming the results orientation.

b. The TWGs role in preparing the work program

and the direct supervision of Consultants, fully supported by ADB and GOP, demonstrated the resolve of ADB in supporting the pursuit of meaningful reforms while at the same time persistently working towards the delivery of all the outputs (with more outputs beyond the original expectations, as indicated in the output and outcome matrix).

Sequencing is

appropriate. CD interventions are

phased to ensure progressively better results and outcomes that are (a) sustainable in terms of the scope and speed of change of the organization’s strengths, and (2) compatible with the development of its institutional environment.

a. The conduct of the Stocktaking Workshop during the early part of the implementation (April 2006) and the TWG Assessment Workshop (September 2006) provided opportunities to all the TWGs of components to determine the priorities in strengthening the country systems and mainstreaming the results orientation.

b. Consultation meetings and capacity building

workshops were then undertaken by the

Benchmarking the Implementation Process: Good Practices on S-4 Capacity Development (CD)

Good Practice Feature

(1) Description

(2)

As Applied in the Planning and Implementation of the TA on

Harmonization and Managing for Results

(3) TWG to improve the agencies capacity in carrying forward the needed reforms (e.g. procurement, environment, GAD, etc) that were compatible with their respective institutional environment.

Processes are

sound. The primary objective is to

achieve behavioral change in organizations and/or restructuring of sector organization. Results-based management is used for the change process, with strong focus on targets and measurement of progress, clear accountability, and a merit-based culture that encourages achievement of the organization’s goals.

a. The preparation of the work program, focusing on the delivery of outputs towards achievement of outcomes, and its subsequent implementation provided confidence to the TWGs in pursuing continuous improvement of the country systems covered under the TA.

b. In case of difficulties of scheduling the

workshops and consultation, the TWGs were given the flexibility of rescheduling the workshops/meetings that allowed the full participation of senior officials in the preparation of the outputs.

Partnership and engagement are strong.

The project is grounded in sharing commitment to it among government, the private sector nongovernment organizations, funding agencies, etc., and in harmonizing objectives and support processes. Engagement is sustained even in difficult circumstances.

a. Strong partnership was established under the leadership guidance of the GOP Harmonization Committee (HC) with the support of the TWGs, Consultant Teams, ADB TA Team and the DPs in strengthening country systems and in mainstreaming results orientation towards improving aid effectiveness.

b. Open and transparent information exchanges

strengthened the partnership through emails, text messages and face-to- face meetings. Nine (9) formal meetings were carried out by the members of the HC while three (3) annual Joint GOP-DP Meetings on Harmonization were carried out during the 26-month implementation. The TWGs and the Consultant Teams, on the other hand, carried out various consultation meetings and workshops with key stakeholders in the preparation of the various outputs involving the LGUs (procurement, PFM, environment, GAD and LAR), with the NGOs (environment, GAD, LAR and overall support to the harmonization efforts), and industry groups (environment).

Benchmarking the Implementation Process: Good Practices on S-5 Capacity Development (CD)

Good Practice Feature

(1) Description

(2)

As Applied in the Planning and Implementation of the TA on

Harmonization and Managing for Results

(3) c. Development partners also carried joint efforts

with the GOP on the following: (i) procurement (DBM/GPPB with ADB, WB and JBIC); (ii) PFM (COA & DBM with ADB & WB); (iii) OPIF (DBM with ADB, AusAID and GTZ); (iv) environment safeguards (DENR/EMB with ADB, WB & CIDA); (v) GAD (NEDA with ADB and the ODA GAD Network); (vi) LAR/IR (HUDCC/GOP with ADB, WB and AusAID); and (vii) overall support to harmonization (GOP & all DPs).

The project is accountable to beneficiaries.

The project firmly promotes transparency, stakeholder participation, and inclusive accountability particularly to the ultimate beneficiaries.

a. The TA was implemented mainly by the GOP agencies with the support of ADB and other DPs in the context of mutual accountability.

b. Accountability in the delivery of outputs and

achievement of outcomes was clearly established through the agreed work programs prepared by each of the GOP TWG and their respective Consultant Teams (that were directly working and supervised by the GOP/TWGs).

c. Key stakeholders were directly engaged by

the TWGs through consultation meetings and workshops. At the policy and oversight level, two (2) representatives of the CSOs are members of the 10-member National Reference/Advisory Group on the Paris Declaration (other members include 5 from the GOP and 3 from the DPs).

Qualitative Assessment on Monitoring ADB’s Progress on T-1 Commitments Under the Paris Declaration - Philippines

Appendix T - BQualitative Assessment on Monitoring ADB’s Progress on Commitments Under the Paris Declaration - Philippines 53

Indicator 1: Operational National Development Strategies

Both, the Philippines Government (GOP) and ADB are committed to implementing the principles of the Paris Declaration on Aid Effectiveness (PD) and have taken steps to implement key principles in their operations. ADB has provided Technical Assistance (TA) to GOP to implement the PD through a Technical Assistance on Harmonization and Managing for Results. President Arroyo’s Ten Point Agenda and the Government’s Medium Term Philippine Development Plan (MTPDP) 2004-2010 provide the strategic directions to guide donor operations in the Philippines. ADB’s Country Strategy and Program (CSP) 2005-2007 is closely aligned with these strategic documents. The CSP 2005-2007 for the Philippines covered 3 years because of the economic uncertainties foreseen in 2005 when it was prepared. These uncertainties waned and the CSP was extended by one year. At the request of the Government, ADB has agreed to extend the current CSP by two more years through a COBP 2009-2010 and to prepare a new Country Partnership Strategy (CPS) 2011-2016 for the Philippines in alignment with the Government's process of developing the Medium Term Philippine Development Program 2011-2016. This will allow for even closer alignment of ADB’s country program with GOP priorities. The GOP’s Medium-Term Public Investment Program (MTPIP) guides public investments in the Philippines. The document is updated continuously as priority projects are identified by sector agencies. Recently, GOP developed the Comprehensive and Integrated Infrastructure Program (CIIP) which contains a list of infrastructure projects to meet the goals and objectives set forth in the MTPDP.

To help implement the MTPDP priorities, the Government has adopted several sector strategies, most with time bound implementation plans and clearly defined ministerial responsibilities. Implementing improved systems for public expenditure management (PEM) including the medium-term expenditure framework (MTEF) which aligns the budget planning process with strategic objectives and priorities is integral to achieving development results. The Department of Budget and Management (DBM) has incorporated the MTEF into the 2008 budget including forward estimates for a three-year rolling period produced for all 23 national agencies. The Organizational Performance Indicator Framework links budget allocations to management performance indicators and has been rolled out to 22 national government line departments. The Philippines Development Forum (PDF) technical working groups and sector strategy-related discussion forums are the primary mechanisms of the Government for facilitating substantive policy dialogue among stakeholders on the country’s development agenda. It also serves as a process for developing consensus and generating commitments among different stakeholders toward critical actionable

53 The qualitative assessment was prepared by Ms. Claudia Buentjen, Senior Governance and Capacity Building

Specialist (ADB), with inputs from Mr. R. Noriel B. Sicad, Project Management Consultant and TA 4696 Coordinator, Ms. Mila Navoa and Ms. Carmie Ricerra, both of ADB-PhCO. The references used were as follows: (a) SERD Updates on the ADB Action Plan - Institutional and Country Level (November 2007); (b) Baseline Study Report on Paris Declaration for 2005/2006 (GOP/ADB, 2007); (c) ADB-PhCO responses to 2nd Survey Round on Paris Declaration (ADB/GOP, March 2008); (d) Report on Country Level Evaluation (GOP, June 2008); and (e) Preliminary Final Report on TA on Harmonization and Managing for Results (June 2008).

Qualitative Assessment on Monitoring ADB’s Progress on T-2 Commitments Under the Paris Declaration - Philippines

items of the Government reform agenda. Working groups have been established on (i) MDGs and Social Progress, (ii) Growth and Investment Climate, (iii) Economic and Fiscal Reforms, (iv) Governance and Anti-Corruption, (v) Decentralization and Local Government, (vi) Sustainable Rural Development, and (vii) Mindanao. Progress in implementing the national development agenda is reviewed at the annual PDF meeting. Harmonization has improved through the establishment of PDF working groups in 2006.

Indicator 2A: Reliable Country Public Financial Management

The GOP had initiated and continually pursued reforms to improve the quality of public financial management systems with the support of ADB and other development partners. Continuous consultations are being undertaken by both the Government and development partners towards enhancing the harmonization and alignment of processes in the financial management and audit of ODA funded projects. However, GOP and development partners have identified several gaps in budget planning, executing and controls. Budget preparation weaknesses include that external assistance alignment with the annual budgetary framework depends in large part on the Government producing the yearly budget on a timely basis. Reaching legislative approval of the annual budget has been a challenge in the Philippines. For example, as of March 2006, the 2006 budget had not yet been approved resulting in a reenactment of the previous years’ budget. There is a need to strengthen the link between the forward estimates to budget ceilings to assure fiscal discipline in the medium term. There is often in-year reallocation of the approved budget between line agencies, thus undermining the credibility of the composition of the budget. There is need for better public access to key fiscal information in the budget documents. Initial steps have been taken to develop an integrated financial management information system. Finally, revenue forecasts for budget preparation are often ambitiously set in most years. Budget execution weaknesses include problems in recording and management of cash balances as there is more than one treasury account that makes it difficult to reconcile balances. There is scope for improving daily and monthly cash forecasting capabilities at the Bureau of Treasury to improve predictability in the availability of funds for commitment of expenditures during the budget cycle. There is also a need to enhance payroll controls, internal controls for non-salary expenditures and internal audits within line ministries and oversight agencies by the Commission of Audit (COA). DBM is in the process of establishing internal audit units within line ministries. It will be important to rollout the program and to establish the independence of internal audit units. Some recent initiatives by GOP strengthen the planning and budgeting link at the Local Government Unit (LGU) level are noteworthy. In March 2007, the DBM, the Department of Finance (DoF), the Department of Interior and Local Government (DILG) and the National Economic and Development Authority (NEDA) jointly issued joint memorandum circular (JMC) No. 1 – Guidelines on the Harmonization of Local Planning, Investment Programming, Revenue Administration, Budgeting and Expenditure Management. The guidelines are seen as an indication of improved coordination between national government agencies and are currently being rolled out at the LGU level. Also, DBM has completed and issued the updated Budget Operations Manual, which contains basic principles and guidelines that will form the platform for performance-based budgeting, Although it is unlikely that the OPIF will be

Qualitative Assessment on Monitoring ADB’s Progress on T-3 Commitments Under the Paris Declaration - Philippines

introduced to LGUs within the next 3 years, given that the priority is to internalize this effectively within the national agencies first, the directions leading towards the OPIF can be initiated through the manual. Among the most recent reforms that the Commission on Audit (COA) has developed is the adoption and implementation of the Electronic New Government Accounting System or e-NGAS, which is a computerized version of the NGAS. It simplifies government accounting, yet provides adequate internal controls and reliable and timely financial management information without sacrificing data integrity and fiscal transparency. It is now being rolled out in national government agencies, LGUs and in government-owned and control corporations. Both parties will continually pursue the adoption of the Risk-Based Audit Approach in the audit of ODA projects and government agencies, consistent with applicable international standards of auditing.

Indicator 2B: Reliable Country Procurement Systems

GOP is strongly committed to alignment and harmonization of procurement systems. The framework of the procurement system is now closely aligned with international best practices, resulting from the harmonization of the basic tools for procurement: (a) The Government Procurement Reform Act (GPRA) of 2003, Republic Act (RA) 9184. The GPRA consolidated all rules of public procurement; mandated standard bidding and the use of the electronic procurement system PhilGEPS, and required the participation of private and nongovernment organization observes in the procurement process. The act is a significant step in streamlining procurement rules and regulations to enhance transparency and accountability. Implementation regulations have been passed later in 2003 for national procurement (IRR-A of RA 9184) and accompanying capacity development and training measures were initiated. The Governance and Anticorruption PDF is currently looking into ways to harmonized procurement for foreign-funded projects (IRR-B of RA 9184); (b) procurement bidding documents were harmonized with ADB, JBIC and the World Bank; (c) General Procurement Manuals harmonized between ADB, JBIC and the World Bank; (d) acceptability of the electronic procurement system for use in MDB-funded procurement; and (e) Joint delivery of training programs. Despite the progress on procurement reforms anecdotal evidence suggest there are still huge leaks in government spending due to corruption in procurement, in part due to inadequate public disclosure of procurement transactions, and weak enforcement of procurement rules and procedures. Therefore it will be important to continue with reforms implementing the Procurement Act to enhance the capacity of government oversight bodies, private sector, and civil society groups to monitor procurement process and transactions, including expanding the use of PhilGEPS, and the compliance of agencies with the Act’s requirements. It is projected that the utilization of the procurement system by the development partners will continuously progress over the years.

Indicator 3: Aid Flows are Aligned on National Priorities (Aid recorded in country’s national

The General Appropriations Act (GAA) provides for the ODA loan allocations that go to the various line and oversight agencies of the Government but excludes those ODA loans that go to the Government-Owned and Controlled Corporations and the Government Financial Institutions (GFIs). Furthermore, under Section 13 of the Special Provisions of the GAA, grants are automatically appropriated and, therefore, not reported in the GAA.

Qualitative Assessment on Monitoring ADB’s Progress on T-4 Commitments Under the Paris Declaration - Philippines

budget as a percentage of DP’s disbursements)

For FY 2007 (January – December 2007), the total ODA disbursed by ADB amounted to US$419.388 million. Since all of it was for the government sector, it was reflected in the national budget. The TA support provided to the Philippines amounted to US$2.65 million and was not recorded in the budget. NEDA draws all projections of disbursements on ODA from loan agreements and disbursement information is drawn from line departments. In general, development partner agencies provide little or no information on projected disbursements or actual disbursements but share some information on the potential possible pipeline for funded projects. This holds true for ADB as well. No schedules of likely fund flows are provided to Government by ADB.

Indicator 4: Strengthen Capacity by Coordinated Support

For FY 2007 (January – December 2007), ADB provided TA to the Philippines amounting to US$2.65 million. Of this amount 70% was spent on capacity development. This information is based on ADB’s classification system for capacity development which was introduced in 2005 and captures projects that are aimed at capacity development defined as institutional development, organizational/group development and/or client, network and partnership development. This is above the 50% target for 2010. All technical assistance projects funded by ADB, including the capacity development interventions are in line with GOP’s broader development objectives, sector strategies and PDF working group priorities. A coherent GOP capacity development strategy is not yet in place and capacity development is often equated with training. Ownership and leadership exercised by Philippine government agencies is usually very high. A sector-wide approach has been established in the health sector.

Indicator 5A: Use of Country Public Financial Management Systems

For FY 2007 (January – December 2007), US$ 325.0 million out of the total of ADB’s portfolio of US$ 419.169 million (78%) used the national budget execution procedures, financial reporting and audit procedures. Due to the high percentage of program loans in 2007, ADB’s performance on indicator 5A was above the development partner average in 2007 which stood at 62%.

Indicator 5B: Use of Country Procurement Systems

For FY 2007 (January – December 2007), US$ 94.168 million out of ADB’s total portfolio of US$ 419.169 million (22%) used the national procurement procedures. The percentage is low in comparison to the 64% country-wide performance, because of the high share of program loans in ADB’s 2007 total lending portfolio. Program loans constitute budget support and do not require procurement.

Indicator 6: Avoiding Parallel Implementation Structures

For FY 2007 (January – December 2007), ADB has fully complied with Indicator 6 since it has no existing parallel implementation structures but used the GOP units in implementing ADB funded projects. In 2007, the number of parallel structures established by development partners in the Philippines decreased from 99 to 52. There are cases where multiple PIUs in one sector are being consolidated into a single PIU. For example, the Foreign-Assisted Projects Office in the Department of Agrarian Reform oversees all donor-funded projects in the sector.

Indicator 7: Aid is More Predictable

For FY 2007 (January – December 2007), US$415.330 million out of the total of ADB’s portfolio of about US$ 419.388 million (99%) was disbursed for the government sector, as planned. This reflects a high predictability of ADB disbursements in 2007. ADB’s performance on this indicator is higher than the

Qualitative Assessment on Monitoring ADB’s Progress on T-5 Commitments Under the Paris Declaration - Philippines

development partner average of 78%. ADB has worked with other MDBs in harmonizing the disbursement policies and procedures. Key areas of harmonization included forms and terminology, advance/imprest fund procedures, milestone events, thresholds and limits and eligibility of expenditures, retroactive financing and financing percentages.

Indicator 8: Aid is Increasingly Untied

As it is the case for most multilaterals, ADB support to the Philippines is largely untied. There a few exceptions to this general rule, such as the requirement that consultants have to be nationals of ADB member countries. In 2007, there was a drastic decrease in the total commitment level of untied aid to the Philippines to 39% F

54 or US$417.07 million of the total commitment of US$1,073.49 million posted for the year. This is due largely to the US$650 million commitment from the People’s Republic of China that entered the portfolio in 2007.

Indicator 9: Use of Common Arrangements or Procedures

For FY 2007 (January – December 2007), US$325.0 million out of the total of ADB’s disbursement of US$ 419.388 million (77%) was provided through direct budget support for two projects namely: (a) the Development Policy Support Program with $250.0 million (2315-PHI); and (b) the Microfinance Development Program (2199-PHI) with $75.0 million. The 77% is higher than the 32% development partner average. Although the oversight agencies, such as, NEDA, DBM and DoF encourage the use of program based approaches, the implementing agencies have strong reservations against this modality. Resistance was mainly due to the following reasons:

No additional resources going to the implementing agency, therefore, no additional incentive;

Additional burden due to the strict compliance with progress or milestone indicators that are made an integral part of the loan covenant;

Implementing agencies still have to work within the budgetary ceiling set by the Budget department; and

Supervision missions are still conducted frequently, which take so much precious time and resources from the implementing agency.

Indicator 10A: Joint Missions

For FY 2007 (January – December 2007), ADB carried out 54 missions on all active/ongoing loans of which none were joint missions (0%). This is below the average of development partners in the Philippines which stands at 28%.

There are signs of a trend toward joint missions. Joint evaluation missions have been conducted in Mindanao by the UN system with AusAID to assess the impact of the third phase of the post-conflict joint program. In the health sector, external partners are conducting joint appraisal and joint review missions, and the Government has a mechanism to track these joint missions. ADB committed to undertake coordinated joint technical missions to develop common policy agenda in certain sectors, e.g. power.

Indicator 10B: Joint Country Analytic Work

For FY 2007 (January – December 2007), ADB carried out an analysis of critical development constraints and analytical work under various TAs, mainly in the area of local government performance management and financing. None of which were

54 Based on the 2007 Summary of ODA Commitments, Public Investment Staff- NEDA

Qualitative Assessment on Monitoring ADB’s Progress on T-6 Commitments Under the Paris Declaration - Philippines

joint undertakings with other Development Partners (0%). This is below the development partner average of 44%. The Philippines Development Forum (PDF) working groups are expected to hasten the conduct of Joint Country Analytic Work among the Development Partners as well as with the Government.

Indicator 11: Results-Oriented Frameworks

Information on the implementation of Government policies is easily accessible and disseminated regularly. The Central Support Office of the NEDA Secretariat is responsible for communicating and disseminating development information related to the MTPDP. The MTPDP was distributed to all national government agencies, selected local governments, Congress and selected private sector organizations. All documents, including a wealth of analytical documents related to the MTPDP and the MTPIP as well as the Socio-Economic Reports on MTPDP implementation progress, are available online in English on NEDA’s website. The Socio-Economic Report is prepared annually by the NEDA Secretariat, detailing the status of MTPDP implementation, an analysis of shortcomings and recommendation for improved performance in implementation. The centralization of monitoring functions as well as MTPDP formulation functions within NEDA facilitates informed Cabinet-level decision-making, in particular given Cabinet-level representation on the NEDA Board Committees. The quality and availability of poverty-related data is improving. The national poverty monitoring system is based on data collected from various censuses, surveys and administrative records of government agencies. But disaggregation of data by gender or by region is often missing in the development information collected by the National Statistics Office (NSO) and other government sources. Poverty information other than income-based data is also missing. However, the poverty analyses of the Second Progress Report on the MDGs (2005) based on data disaggregated by gender and by region indicates progress in this area. Data collection with community-level involvement has been on the rise since the mid-1990s, helping to address these data gaps.

The ADB has provided assistance to DBM to develop the Organizational Performance Indicator Framework (OPIF) through a RETA on Strengthening Results-Based Management and a TA on Harmonization and Managing for Results. OPIF links budget allocations to management performance indicators and has been rolled out to 22 national government line departments. Further, ADB has also pursued the following initiatives in promoting the results orientation frameworks: • ADB and other MDBs are working towards harmonization of evaluation practices,

where Good Practice Standards have been developed and benchmark studies are being undertaken;

ADB is committed to support the EBRD’s Business Environment and Enterprise Performance Survey, which aims to consolidate and harmonize the large number of investment climate surveys carried out in individual countries by conducting one global survey in partnership with the WB and the regional MDBs;

ADB likewise has committed to develop a Social Protection Index which will allow development partners to monitor the equitable access to basic social services.

Indicator 12: Mutual

Successful implementation of the national development strategy depends not only on government leadership and coordination across the executive and local

Qualitative Assessment on Monitoring ADB’s Progress on T-7 Commitments Under the Paris Declaration - Philippines

Assessment of Progress

government, but also on consistent stakeholder involvement. In the Philippines, private sector, non-government organizations, peoples’ organizations, members of Congress and other civil societies were also represented during the Plan formulation, through sectoral/thematic committees, and sometimes during implementation by resorting to decentralized and participatory decision making structures with the direct involvement of marginalized communities. The mutual assessment of progress has been conducted by the GOP even before the Paris Declaration through the Annual Joint ODA Portfolio (now on its 16th year) and was further strengthened through the country-level joint GOP-development partner meeting on Harmonization and Aid Effectiveness as well as the PDF. • Joint portfolio reviews. The preparations for the Report on the 16th Joint ODA

Portfolio Review were completed will culminate in the submission of the Report to the Congress of the Philippines on 30 June of each year, as embodied in the ODA Act of 1996. The Review will assess the 2007 performance of ODA funded projects, report on results and outcomes derived from implementing ODA programs and projects, identify key implementation issues and problems that may arise in project implementation, and generate updates on recommendations made in previous portfolio reviews. The Report will include major accomplishments, outputs and results of projects, key implementation issues, measures done in 2007 to improve ODA performance, lessons learned, best practices, and proposed measures to be undertaken by the Philippine Government to improve ODA implementation in the future.

• Country-level harmonization and aid effectiveness meeting. The GOP and ADB

organized a Consultation Meeting on Harmonization and Aid Effectiveness in March 2006, with both the GOP and development partners reporting on various initiatives that were pursued in support to the five areas of the Paris Declaration. A follow-up Joint Consultation Meeting between the GOP and DPs was undertaken in March 2007, with ADB’s support, to discuss updates on the harmonization efforts. The GOP Harmonization Agenda was presented with the core outcome of “a more efficient, effective and results-based GOP systems and management of development resources put in place, with support of the Development Partners, in pursuit of the development goal” which was further supported by two (2) sub-outcomes as follows:

1. Country systems streamlined and extensively supported by development

partners; and 2. Results-based management orientation within the GOP bureaucracy

mainstreamed, e.g., Organizational Performance Indicator Framework (OPIF), Efficiency and Effectiveness Review, Results Monitoring and Evaluation, among others.

Subsequent updates on the harmonization efforts and aid effectiveness were presented during the 2008 (21 February) Annual Joint GOP-DP Meeting.

• Philippines Development Forum (PDF). The PDF, as an institution, has evolved from the Consultative Group Meetings of Development Partners. The PDF is organized into sub-working groups representing key thematic policy issues central to the reform efforts of the Government. The thematic working groups are: 1) MDGs and Social Progress; 2) Growth and Investment Climate; 3) Economic and Fiscal Reforms; 4) Governance and Anti-Corruption; 5) Decentralization and Local Government; 6) Sustainable Rural Development; and 7) Development of Mindanao. The principles of the Paris Declaration

Qualitative Assessment on Monitoring ADB’s Progress on T-8 Commitments Under the Paris Declaration - Philippines

provide the framework for the organization, action planning, and engagement of the PDF working groups.

The GOP through the years has initiated and implemented mechanisms to strengthen its partnership with the donor community, as reflected in the a) The Official Development Assistance Act (Republic Act 8182); b) ODA Programming Meetings; c) Portfolio Reviews on Project Implementation; and, d) Technical Working Group Meetings using Shared Results Framework.