Technical Assistance to the Republic of the Philippines for Harmonization and Managing of Results (PHI 35166/4686) Final Report

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2 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

3 Technical Assistance Completion Report 1 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 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. i

4 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 ii

5 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 HTable 4: Summary of Outputs and Outcome Indicators, by Component HTable 5: Initial Progress and Overall Performance on Paris Declaration Indicators and targets HTable 6: Mechanisms Employed in Applying Good Practices on CD in TA Implementation iii

6 BAbbreviations ADB AFR AMLAC API APR ARMM AusAID BESF BIS BLGF BLI BSP BTr CD CFO CICT CIDA CLE CNC COA COP COSO COS CPM CSO CSC CSP CSS CWID DAC DBM DENR DFA DFID DILG DMF DOF DP DSWD Asian Development Bank Annual Financial Report Anti-Money Laundering Council Agency Performance Indicator Agency Performance Review Autonomous Region of Muslim Mindanao Australian Agency for International Development Budget of Expenditures and Sources of Financing Baseline Information System (on Procurement) Bureau of Local Government Finance Baseline Indicators Bangko Sentral ng Pilipinas (Central Bank of the Philippines) Bureau of Treasury Capacity Development Commission of Filipinos Overseas Commission on Information and Communication Technology Canadian International Development Agency Country Level Evaluation Certificate of Non-Coverage Commission on Audit Community of Practice Central Operations Services Office Country Operational Strategy Customized Procurement Manuals Civil Society Organization Civil Service Commission Country Strategy and Program Country Safeguard Systems Central and West Asia Infrastructure Division Development Assistance Committee of the OECD Department of Budget and Management Department of Environment and Natural Resources Department of Foreign Affairs Department for International Development Department of Interior and Local Government Design and Monitoring Framework Department of Finance Development Partners Department of Social Welfare Development iv

7 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 v

8 MMUSP MOU GMTCRB MTEF MTPDP NCC NCRFW NEDA NGAS NGO NHA NICA NSC NTRC ODA OECD OED OMA OMB OMES OP OPIF OPS OVP PAWB PBAs PBD PCGG PCHP PCUP PDEA PDF PEISS PEGR PER PFM PhCO PhilGEPS Philracom PIs PIAC PIUs PLLO PMS PMU Metro Manila Urban Services for the Poor Memorandum of Understanding Movie and Television Review and Classification Board Medium-Term Expenditure Framework Medium-Term Philippine Development Program National Computer Center National Council for the Welfare of Filipino Women National Economic and Development Authority New Government Accounting System Non-Government Organization National Housing Authority National Intelligence Coordinating Agency National Security Council National Tax Research Center Official Development Assistance Organization for Economic Co-operation and Development Operations Evaluation Division Office on Muslim Affairs Optical Media Board On-line Procurement Monitoring and Evaluation System Office of the President Organizational Performance Indicator Framework Office of the Press Secretary Office of the Vice President Protected Areas and Wildlife Bureau Program-Based Approaches Philippine Bidding Document Presidential Commission on Good Government Philippines Country Harmonization Program Presidential Council on the Urban Poor Philippine Drug Enforcement Agency Philippine Development Forum Philippine Environmental Impact Statement System Philippine Economic Governance Reform/Facility Public Expenditure Reform Public Financial Management Philippine Country Office Philippine Government Electronic Procurement Systems Philippine Racing Commission Performance Indicator/s Project Inter-agency Committee Project Implementation Units Presidential Legislative Liaison Office Presidential Management Staff Project Management Unit vi

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

10 TECHNICAL ASSISTANCE CLASSIFICATION Targeting Classification Sector Subsectors Theme Subtheme General intervention Law, economic management and public policy National government administration; capacity development Governance, capacity development Public governance, institutional development NOTE In this report, "$" refers to US dollars. viii

11 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 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) 2 nd 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) 2 nd Survey Round on Paris Declaration. 2 2 The results of Baseline Study (2005 & 2006) and the 2 nd 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 ix

12 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 Declaration 3. 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 outcomes 4. 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 2 nd 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. x

13 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 Declaration 5 ) 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 ( ); (b) preparation of the Baseline Study for 2005/2006; (c) preparation of the 2 nd Survey Round; and (d) support to the Country Level Evaluation in preparation to the HLF-3. xi

14 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. xii

15 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 As a basic reference in the management of the TA, the GOP and ADB adhere to the principles of Managing for Development Results 6, 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 MfDR Principles in Action: Sourcebook on Emerging Good Practices, p3. 7 Evans, Martin Capacity Development in South Asia (Occasional Paper 1). ADB, Manila, Philippines, p20. 1

16 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, 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 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). 2

17 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 planningbudgeting 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); F11 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. 3

18 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 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. 4

19 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 5

20 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 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 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 6

21 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. 7

22 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 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$) Expenditure Items TA Estimates (Nov 2005) Actual (30 April 2008) Amount % Amount % 1. Consultants/Travels 623, , Workshops/Trainings/Conferences 44, , Misc/Manuals/IEC 10, , Contingencies 23, TOTAL 700, , Remarks 1 International & 18 Domestic Consultants Learning-by-doing approach w/ stakeholders consultation Manuals and IEC materials were produced 25. In the initial work programs, many of the TWGs included the printing of Manuals as one of the outputs but was eventually scaled down due to reduction on the available US$ 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 to all the members of the HC and TWG and was eventually accepted by the HC and all the TWGs. 8

23 budget. Only Part A (Overall Support) exceeded the initial allocation by about US$14,000 due to additional expenditures as approved by the HC, related to the 5-month extension period and the conduct of additional activities related to the 2 nd Survey Round on the Paris Declaration indicators. Table 2: Component Fund Allocation & Actual Expenditure (in US$) Components/ Expenditure Items Allocation (Aug 2006) Actual Expenditures Amount Amount % Part A Overall Support Consultants (2) 126, Training/Workshops 18, Misc Contracts 7,116 5 Sub-Total 137, , Part B.1 Procurement Consultants (3) 19, Training/Workshops 87, Manuals 11, Sub-Total 125, , Part B.2 Financial Mgt & Audit Consultants(2 w/1 International) 91, Training/Workshops 9,545 9 Sub-Total 118, , Part C Budget (OPIF) Consultants (4) 77, Training/Workshops 32, Sub-Total 104, , Part D - Project Quality at Entry D.1 Environment Consultants (4) 34, Training/Workshops 29, Manuals 7, Sub-Total 70,000 71, D.2 Gender & Development (GAD) Consultant (1) 21, Training/Workshops 43, Manuals 10, Sub-Total 75,000 74, Remarks Increase in actual expenditures was mainly due to additional personmonths for Consultants due to 5- month extension of TA and conduct of 2 nd Survey Round, both approved by the Harmonization Committee. 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 Consultants inputs were mainly utilized in assessment of Auditing and NGAS in partnership with the COA TWG 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. 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 webbased EIA support system. 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. 9

24 Components/ Expenditure Items Allocation (Aug 2006) Actual Expenditures Amount Amount % D.3- Land Acquisition & Resettlement (LAR) Consultants (2) 30, Training/Workshops 32, Manuals 7, Sub-Total 70,000 71, Remarks 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 s, 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 s 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 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 s even late in the evening but it eventually slowed down after receiving some feedback that s sent late in the evening was already causing sleep disturbance, from other members TA support Team who had their s routed to the cellular phones. 19 The 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 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 The first Annual Joint GOP-DP Meeting was held in 2005 while this Technical Assistance was being conceptualized. 10

25 Philippines, jointly convened this meeting. The HC determined the 22 meeting agenda while the TWGs prepared the presentation materialsf consisting of updates and follow-up activities for the subsequent year. ( HAppendix N). 27. The available means for constant communication and reporting through s, 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 23 under the TA on Harmonization and Managing for Results. F 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 personmonths) 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), resultsbased 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 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). 11

26 Total 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) 2 nd Edition Harmonized GAD Guidelines (finalized and printed) F24 ; (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) 2 nd Survey Round on Paris 25 Declaration. F 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 2 nd 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

27 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 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. 13

28 Table 4: Summary of Outputs and Outcome Indicators, by Component. Components Output Indicators Outcome Indicators Part A Overall Support to HC Part B.1 - Procurement Part B.2 Financial Mgt and Audit Harmonization Stocktaking Report prepared GOP Harmonization Agenda defined and presented to Joint GOP and DPs Consultation Meeting on Paris Declaration GOP Action Plans for prepared (by all TWGs) Baseline Study (2005/2006) on indicators of GOP s commitment to Paris Declaration completed 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). 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 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 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 2 nd 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 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 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 14

29 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 Performancebased Budget Process (OPIF) Part D.1 - Environment 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 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) 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 performancebased processes through the OPIF. 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 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 15

30 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) Part D.3 Land Acquisition and Resettlement (LAR) 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 2 nd Edition of Harmonized GAD Guidelines 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 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 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 genderresponsiveness 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. 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 16

31 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 nd 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 Move up 1 2b Quality procurement systems Desk Review 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 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 17

32 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 subcomponents 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. 18

33 Table 6: Mechanisms Employed in Applying Good Practices on CD in TA Implementation Good Practices in CD 1. Strong local ownership; local values are respected, self-esteem is fostered. 2. Suitable positive incentives are present. 3. Use is made of existing capacities; external inputs are integrated with national priorities, processes, and systems. 4. Imported models are adapted to local Mechanisms Employed in Support to Good Practices TA was implemented under the leadership of the GOP Harmonization Committee (HC) 26 F 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. 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. 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, performancebased 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. 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. 19

34 Good Practices in CD 5. Driver for change and reform leader present. 6. Sequencing is appropriate. 7. Partnership and engagement are strong. 8. The project is accountable to beneficiaries. Mechanisms Employed in Support to Good Practices 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). 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. 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 s, text messages and face-to-face meetings. Development partners also carried joint efforts with the GOP on various concerns related to Paris Declaration. 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 20

35 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 2 nd 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 1 st 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 (2 nd 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 21

36 possible support through a Joint Memorandum Circular supported by NHA, PCUP, DENR, DILG, DOF and HUDCC (January February 2008). Broad 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 22

37 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 23

38 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. 24

39 Appendix A - BGeneral Plan: Implementation Approach Report Overview 27 Implementation Approach ReportF 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 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 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-1

40 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 29 and tasks related to the harmonization initiatives. F The ADB-PhCO, through the designated ADB Project Officer and assisted by a Project Management Expert F30, 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 3 rd 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-2

41 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, 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-3

42 2. Assistance provided in the preparations and conduct of the 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-4

43 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 Harmonization action plan and tracking mechanism functioning Department reports on implementation of action plans, consultant report Assumption: Government agencies' continued commitment and action on the agenda Part B. Improved and harmonized Government and development partners procedures and guidelines for procurement, financial management, and audit Speedier and more transparent procurement procedures; financial management and audit guidelines Progress reports on implementation of harmonized procurement guidelines; completed financial management and audit guidelines and progress reports on implementation Part C. Strengthened performancebased 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 Write up of process for DBM internal guidelines Capabilities of DBM and department officials to apply RBM readiness assessment and management tools in line departments strengthened Documentation of involvement of DBM and department officials in pilot assessments Part D. Streamlined and improved project processing procedures enhancing quality at entry of projects, especially in the areas of environment, gender, and LAR Revised and easier guidelines on LAR and environment completed and implemented; gender guidelines institutionalized in all agencies. Outputs General Plan: Implementation Approach Report A-5 (Design and Monitoring Framework)

44 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 Accomplishments, action plan, and monitoring framework prepared Actual reports submitted by consultants; training materials completed; no. of actual training sessions conducted Technical assistance, Paris Declaration, HC agenda DBM's and development partners' progress reports; technical assistance; agency's existing resources Assumption: Government's commitment to reforms, availability of technical assistance, and Government's contribution Assessment of the compliance of NGAS with international accounting standards Assessment completed Technical assistance, agencies' existing procedures, related circulars and manuals of COA and IAS 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 Technical assistance; DBM and NEDA's existing guidelines on EER and OPIF 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 Report completed Report completed; workshops and training conducted Report completed; IRR drafted; advocacy plan prepared Technical assistance; DENR's existing guidelines Technical assistance; GAD guidelines Technical assistance Activities with Milestones Inputs 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). Domestic consulting services 2 consultants (5 and 12 person-months each) Reports PMU operating costs Contingencies Local travel Part B.1 - Procurement (Jan 2006 Sep 2007) International consulting services 1 consultant (6 General Plan: Implementation Approach Report A-6 (Design and Monitoring Framework)

45 Design Summary Performance Targets/Indicators Data Sources/Reporting Mechanisms 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. Assumptions and Risks person-months) Domestic consulting services 1 consultant (6 person-months) Reports PMU operating costs Contingencies International and local travel 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). 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 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. 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-7 (Design and Monitoring Framework)

46 Design Summary Part D.2- Gender and Development (GAD) Performance Targets/Indicators Data Sources/Reporting Mechanisms 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. Assumptions and Risks Reports Training PMU operating costs Contingencies Local travel Part D.3- Land Acquisition and Resettlement (LAR) 1. Review the achievements and limitations of RETA 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. 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 resultsbased management; RETA regional technical assistance; TA technical assistance General Plan: Implementation Approach Report A-8 (Design and Monitoring Framework)

47 Appendix A.2 - BIndicative Work Program (April 2006) Indicative Work Program GOP Harmonization Workshop April 2006 Appendix A.1 - General Plan: Implementation Approach Report (Indicative Work Program - April 2006) A-9

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

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

50 Appendix B - BEstablishing GOP Ownership through Consultation: Highlights of Preparatory Meeting with COA Attendance Highlights of the Preparatory Meeting with COA 8 March 2006; 10 AM 12 NN 3/F COA Bldg., Commonwealth Avenue, Quezon City COA Assistant Commissioner Emma M. Espina COA Assistant Commissioner Carmela S. Perez Mr. Joven Balbosa ADB PhCO Ms. Lirio T. Abuyuan TA Consultant (RBM) 31 Mr. R. Noriel B. Sicad TA Coordinator (Project Management) F 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-1

51 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 2 nd 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 3 rd 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 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-2

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

53 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 F33 ; 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 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-1

54 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 1 st ranked Consultant indicating dates of possible deployment 6. If 1 st 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 1 st 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 subcomponent 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-2

55 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 1 st 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. Partnership for Results: Protocol in Procurement of Consultants and Ensuring Delivery of Outputs C-3

56 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-1

57 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-2

58 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-3

59 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 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-4

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

61 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 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 April 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-1 Appendix C - on the Complementation of TA and RETA Activities

62 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 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

63 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 Impact Improved development effectiveness, reduced transaction costs through improved processing and implementation of development programs Outcome Improved and harmonized Government and development partners procedures and guidelines for procurement Outputs Rollout of the generic procurement manuals to regions conducted through GPPB regional trainors for Local Government Units (LGUs) (and National Government) procurement personnel Performance Targets/ Indicators Improved implementation of development projects (for locally, nationally and ODA funded projects) More transparent procurement procedures and guidelines at NGAs, GOCCs & LGUs Speedier processing on the procurement of civil works, goods and services 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 (selffinanced by respective LGUs) Data Sources/ Reporting Mechanism Government growth and ODA statistics; GOP Project monitoring reports ADB Project Monitoring Reports Progress reports on implementation of harmonized procurement guidelines using the Agency Performance Indicator (API) Feedback Reports on Effectivity of GPM Trainings Training Activity Completion Reports GPPB s Progress Reports Technical assistance Reports Assumptions/ Risks Assumption: Full commitment of Government and Development Partners Assumption: Government agencies' (including LGUs) continued commitment and action on the agenda 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. 2,000 GPMs Aligning and Matching Scope and Resources: Using the Design and F-1 Monitoring Framework (DMF) in Ascertaining Scope on Procurement

64 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 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) Development of Simplified Procurement Manuals and Training Modules for Local Government Units (LGUs) by Nov-Dec 2006 Funds for 2 batches of GPM trainings for LGU personnel (selffinanced by participants office) 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 working 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-2 Monitoring Framework (DMF) in Ascertaining Scope on Procurement

65 Reproduction of Simplified Procurement Guide for Barangays by February- March ,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 Aligning and Matching Scope and Resources: Using the Design and F-3 Monitoring Framework (DMF) in Ascertaining Scope on Procurement

66 Appendix G - BComplementation of Various Technical Assistance Projects of Development Partners to the GOP Complementation and Support Matrix (DPs & ADB Units) 34 Philippine Commitment to the Paris Declaration 1. Improved and harmonized procedures and guidelines on Procurement Areas on Harmonization Specific Actions to be Taken under the TA (based on Action Plan prepared by TWGs) Development of Feedback Mechanism for Monitoring Effectiveness of GPPB Training on Procurement Preparation of Procurement Manuals for LGUs Development Partner Agencies World Bank, through its support in the Professionalization Program World Bank and JBIC in their support to the preparation of the Generic Procurement Manual (GPM) Partner Entities ADB Focal Units/ Counterparts COS1 (Bob Rothery) COS1 (Bob Rothery) SEGF (Tariq Niazi) Responsible GOP Agency GPPB/ DBM GPPB/ DBM Printing of 500 copies of updated version of the GPM Reproduction of 500 copies of Procurement Manual for LGUs CIDA with its support to initial installation of the electronic procurement portal 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-1

67 Philippine Commitment to the Paris Declaration 2. Improved and harmonized procedures and guidelines Financial Management & Audit Areas on Harmonization Specific Actions to be Taken under the TA (based on Action Plan prepared by TWGs) Areas for harmonization at three levels identified and prioritized Standardize/simplify forms to address oversight and line department requirements. Guidelines on the audit of foreign-assisted projects drafted/ piloted and finalized for adoption. COA personnel trained on audit of foreign-assisted projects. Assessment Report on NGAS & e-ngas on IAS compliance Development Partner Agencies 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) World Bank & JBIC through the preparation of a common agenda for harmonization way back in 2003 Partner Entities ADB Focal Units/ Counterparts RSCG (Kathleen Moktan) RSCG (Kathleen Moktan) RSCG (Kathleen Moktan) Responsible GOP Agency COA COA COA Complementation of Various Technical Assistance Projects of Development Partners to the GOP G-2

68 Philippine Commitment to the Paris Declaration Areas on Harmonization Specific Actions to be Taken under the TA (based on Action Plan prepared by TWGs) Development Partner Agencies Partner Entities ADB Focal Units/ Counterparts Responsible 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 performancebased budgeting processes using the Organizational Performance Indicator Framework (OPIF) 4. Streamlined and improved processing procedure and enhanced 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 Preparation of the Assessment Report on the EIA System World Bank with its support to MTEF AusAID through the Philippine Economic Governance Reform (PEGR) Program World Bank through its EIA Study RSCG (Claudia Buentjen) SEID (Yue-lang Feng) RSES (RETA Team - Ms. Xiaoying Ma) SPU on ADB Policy Updates DBM ADB RETA Team DENR/ EMB Complementation of Various Technical Assistance Projects of Development Partners to the GOP G-3

69 Philippine Commitment to the Paris Declaration Project Quality at Entry - Environment Areas on Harmonization Specific Actions to be Taken under the TA (based on Action Plan prepared by TWGs) Development of IEC Material for different stakeholder groups Development of Interactive (EA) Query System on the ECC application and processing Development Partner Agencies CIDA through exploratory meeting with DENR/EMB on possible areas for technical assistance Partner Entities ADB Focal Units/ Counterparts SEID (Yue-lang Feng) RSES (RETA Team) Responsible GOP Agency DENR/ EMB Development of Project Planning Info Support System for EA 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 1 st 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-4

70 Philippine Commitment to the Paris Declaration and improved processing procedure and enhanced Project Quality at Entry Land Acquisition & Resettlement (LAR) Areas on Harmonization Specific Actions to be Taken under the TA (based on Action Plan prepared by TWGs) 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 Development Partner Agencies System in the Philippines AusAID through the Land Adminstration and Management Project (LAMP) Partner Entities ADB Focal Units/ Counterparts RSES (RETA Team Ms. Xiaoying Ma) SPU on ADB Policy Updates RSCG (Kathleen Moktan) RSES (RETA Team - Ms. Xiaoying Ma)) Responsible GOP Agency HUDCC/ Urban Asset Group Complementation of Various Technical Assistance Projects of Development Partners to the GOP G-5

71 Appendix H - BLooking Ahead to Frontline Service Delivery: LGU-Related Linkages of the TA on Harmonization Four Linkages for Institutional Building (Esman, 1967; Blaise, 1973) 1. Enabling linkages - development of relationship with other entities that control the allocation of authority and resources that the institution needs 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 Part A: Overall Support to Harmonization (DOF/NEDA) Effective Donor/ODA Coordination at the Local Government Level Support Activities to LGUs Conducted 35 Part B: Procurement and PFM Procurement (GPPB-TSO) PFM (COA) Part C: Managing for Results OPIF (DBM) Part D: Improving Project Quality at Entry EIA (EMB/DENR) GAD (SDS/NEDA w/ NCRFW) LAR (HUDCC & Interagency TWG) Philippines: Local Government Code of 1991; Public Expenditure Management (PEM) Reforms; Results Monitoring and Evaluation Support to overall implementation of the TA including the participation of LGUs in improving aid effectiveness and managing for International: Paris Declaration on Aid Effectiveness; Managing for Development Results 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-1

72 Four Linkages for Institutional Building (Esman, 1967; Blaise, 1973) competition Part A: Overall Support to Harmonization (DOF/NEDA) development results Part B: Procurement and PFM Procurement (GPPB-TSO) LGUs PFM (COA) Part C: Managing for Results OPIF (DBM) performancebased budgeting Part D: Improving Project Quality at Entry EIA (EMB/DENR) GAD (SDS/NEDA w/ NCRFW) projects LAR (HUDCC & Interagency TWG) 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; 2 nd 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-2

73 Four Linkages for Institutional Building (Esman, 1967; Blaise, 1973) 4. Diffused linkages - relationship between the institution and the public opinion and with the public in general Part A: Overall Support to Harmonization (DOF/NEDA) Part B: Procurement and PFM Procurement (GPPB-TSO) 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 PFM (COA) Need for more capacity building support to the implementation of the New Government Accounting Standards (NGAs) as well as in Auditing Part C: Managing for Results OPIF (DBM) Need for more capacity building support to LGUs on performancebased budgeting as well as on results-based monitoring and evaluation Part D: Improving Project Quality at Entry EIA (EMB/DENR) 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 GAD (SDS/NEDA w/ NCRFW) 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 LAR (HUDCC & Interagency TWG) 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) Looking Ahead to Frontline Service Delivery: LGU-Related Linkages of the TA on Harmonization H-3

74 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); 2 nd 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) F36. 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. Name of Consultants Major Other Executive Offices (OEOs) based on 2006 Budget 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-1 DBM on Assignments of Consultants on the Cascading of the OPIF

75 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 1 st week of May The timelines and the deliverables on the cascading of the OPIF involving the ADB OPIF Consultants are shown in the matrix below. Milestones/Outputs 1. Work Program including initial Activity Designs for Consultation meetings and Workshops needed for the delivery of outputs, as enumerated below. 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 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 4. Inputs provided to the framework and mechanisms in performance monitoring and review in support to the conduct of Agency Performance Review (APR) 5. Final process documentation prepared on the validation of logframes, MFOs and PIs of assigned agencies Timelines March 2007 April 2007 April 2007 May 2007 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-2 DBM on Assignments of Consultants on the Cascading of the OPIF

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

77 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-1 LAR/IR Harmonization

78 equity to private entities. The World Bank Group does the same through its private sector arm, the International Finance Corporation. Type of Lands/Trigger Publicly Owned Lands National Government Owned Local Government Owned Private Lands Induced by Government Projects Alone: Financed by International Financing Institutions Scope of Work Matrix Locally Financed: National Government Locally Financed Induced by Private Financing as Stand Alone or as Public Private Partnership (PPPs) Arrangements PPPs: PPPs: Induced by Enforcement of Laws e.g. Easement Regulations along Waterways, in Public Thoroughfares, Coastal Areas 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-2 LAR/IR Harmonization

79 (different ways by which land acquisition is to be done for national government and local government projects.) Sustainability of GOP & DP Support: Minutes of the GRP-ADB-WB-AusAid Meeting on J-3 LAR/IR Harmonization

80 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-1 Meeting on LAR Harmonization

81 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-2 Meeting on LAR Harmonization

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

83 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$ Whole TA Component (1) TA Estimate (November 2005) Amount % Allocation (August 2006) Amount (2) % Actual Disbursement (April 2008) Actual (3) Consultants/Travels/Reports 623, , Workshops/Trainings/Conference 44, , Misc/Manuals/IEC Materials 10, ,898 5 Contingencies 23,000 3 GRAND TOTAL 700, , % 699, Part A -Overall Support Consultants (2) 126, Part A Training/Workshop 18, Earlier Contracts 7, Sub-total Part A 137,700 20% 152, % Component Allocation 111% Part B Procurement Procurement Consultants (3) 19, Procurement Workshops 87, Procurement Manuals 11, Sub-total Proc 125,000 18% 119, % Component Allocation 95% % (4) Remarks (5) 1 International and 18 Local Consultants Learning-by-doing approach pursued by TWGs, with stakeholders consultations Manuals were prepared by TWGs and printed on Procurement (LGU), Environment, Gender and Development (GAD) & Land Acquisition and Resettlement (LAR) 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 nd Round Survey 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-1

84 Component (1) TA Estimate (November 2005) Amount % Allocation (August 2006) Amount (2) % Actual Disbursement (April 2008) Actual (3) Part B - Fin Mgt & Audit Consultants (2) 91, Finance - Workshops/Briefings 9,545 9 Sub-total Fin/Aud 118,100 17% 101, % Component Allocation 86% Part C - OPIF (Budget) Consultants (4) 77, Budget Workshops 32, Sub-total OPIF 104,200 15% 109, % Component Allocation 105% Part D Environment Consultants (4) 34, Environment Workshops 29, Manuals/Printing 7, Sub-total Environment 70,000 10% 71, % Component Allocation 102% Part D GAD Consultant (1) 21, GAD Workshops 43, GAD Manuals 10, Sub-total GAD 75,000 11% 74, % Component Allocation 99% Part D- LAR Consultants (3) 30, LAR Workshops 32, LAR Manuals 7, Sub-total LAR 70,000 10% 71, % Component Allocation 101% % (4) Remarks (5) Assessment Report on NGAS, Audit of FAPs and Harmonizing of PFM Reports within GOP and DPs 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 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. Trainors' Training on Harmonized GAD Guidelines & Updating of Harmonized GAD Manual (2nd Edition). 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-2

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

86 Appendix M - BImportance of High-Level Support & Guidance: Highlights of 6 February 2008 Harmonization Committee Meeting Attendance Harmonization Committee Meeting 6 February 2008, 10:00 AM IFG Conference Room 5/F DOF Bldg, Roxas Blvd, Manila Draft Highlights of the Meeting 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-1 Harmonization Committee Meeting

87 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-2 Harmonization Committee Meeting

88 the GOP and DPs need not spend again on the conduct the same studies and preparation of the same manuals 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-3 Harmonization Committee Meeting

89 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) 2 nd Round Survey on PD conducted; and (ii) Report prepared for HLF in Ghana in September 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, for the baseline budget) while the available funds was only US$40,825 or a deficit of US$15, 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 , to all the HC and TWG members for review F38. 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 . 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-4 Harmonization Committee Meeting

90 General Marcelina Bacani, namely: (a) 2008 Survey on Aid Effectiveness: Asia-Pacific Orientation Workshop (Bangkok, Thailand on 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 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 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-5 Harmonization Committee Meeting

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

92 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 (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 countryspecific 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-1 21 February 2008 Joint GOP-DP Meeting on Harmonization

93 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 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-2 21 February 2008 Joint GOP-DP Meeting on Harmonization

94 10. Initial Communication Plan on Procurement presented to PDF Subgroup on Procurement last November 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-3 21 February 2008 Joint GOP-DP Meeting on Harmonization

95 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-4 21 February 2008 Joint GOP-DP Meeting on Harmonization

96 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 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 (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 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 dated 21 Aug. 2007) w/ more userfriendly 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-5 21 February 2008 Joint GOP-DP Meeting on Harmonization

97 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-6 21 February 2008 Joint GOP-DP Meeting on Harmonization

98 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-7 21 February 2008 Joint GOP-DP Meeting on Harmonization

99 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-8 21 February 2008 Joint GOP-DP Meeting on Harmonization

100 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-9 21 February 2008 Joint GOP-DP Meeting on Harmonization

101 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 February 2008 Joint GOP-DP Meeting on Harmonization

102 Indicator 6: Strengthen Capacity by Avoiding Parallel Implementation Structures How many parallel project implementation units did you make use of? Number Of Parallel PIUs 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 Direct Budget Gov t Sector Support Ratio (a) (b) (b/a) (US $ M) (US $ M) 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 programbased approaches (PBAs)? Working Continually on Mutual Accountability: Highlights of the N February 2008 Joint GOP-DP Meeting on Harmonization

103 Target for 2010: provided in the 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% 66% of aid flows are 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) % % 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) % % 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 povertyrelated 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 Working Continually on Mutual Accountability: Highlights of the N February 2008 Joint GOP-DP Meeting on Harmonization

104 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 b Quality procurement systems 3 Aid reported on budget 26% 32% 85% 4 Coordinated capacity 77% 68% 50% development 5a Use of country PFM systems 74% 55% 83% (percent of aid) 5b Use of country procurement systems (percent of aid) 37% 29% 58% 6 Parallel PIUs In-year predictability 19% 56% 60% 8 Untied aid Use of programbased approaches 9% 40% 66% 10 a Coordinated missions 22% 20% 40% 10 Coordinated 27% 24% 66% Working Continually on Mutual Accountability: Highlights of the N February 2008 Joint GOP-DP Meeting on Harmonization

105 b country analytical work 11 Sound performance assessment framework 12 Reviews of mutual accountability - - Yes - - 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 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 programbased 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 February 2008 Joint GOP-DP Meeting on Harmonization

106 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 resultsbased 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. Working Continually on Mutual Accountability: Highlights of the N February 2008 Joint GOP-DP Meeting on Harmonization

107 Mobilizing Appendix O - B Existing Capacities in Delivering Results: Actual Consultants Inputs 39 Details of Consultants InputsF (as of 30 April 2008) # of Person-Months NTP Start End Date of Components/ Consultants Expertise Consultants Name TA Date Contract Actual Estimate (dd/mm/yy) dd/mm/yy) Part A Overall Support to Harmonization 1. L.T. Abuyuan Results-Based Management (RBM) /03/06 30/04/08 2. R.N.B. Sicad Project Management /03/06 30/04/08 Part B-1: Procurement Procurement (Intl) 6 3. C. Ravanes Procurement for LGU /03/07 30/11/07 4. R. Bicol Procurement for LGU /10/07 31/12/07 5. R Polestico Procurement (Training) /05/07 30/11/07 Part B-2: Financial Mgt & Audit 6. E. Dalman PFM Audit (Intl) /10/06 30/11/07 7. E. Diaz PFM Accounting /11/06 30/11/07 Part C: Performance-based Budget Processes OPIF F41 (Intl) A. Brillantes OPIF Specialist /03/07 15/08/07 9. J. Galveztan OPIF Specialist /03/07 31/12/ R. Quieta Deceased-6/07 OPIF Specialist /03/07 15/08/07 11.L.T. Abuyuan RBM Phase 2 (OPIF Manual Preparation) /09/07 30/04/08 Part D-1: Project Quality Environment 12. A. Porras Social Safeguards (Environment) Specialist /06/06 31/01/ R. Garcia EIA Specialist /05/07 30/09/ M. Botengan IEC Specialist /05/07 30/11/ E. Miraflores EIA IT Specialist /05/07 31/10/07 Part D-2: Project Quality GAD 16. J. Illo GAD Specialist /07/06 30/11/07 Part D-3 Project Quality LAR 17. M. Rollolazo Social Safeguards (LAR/IR) /07/06 15/03/ F. Cuervo Land Valuation /05/07 17/10/ C. Arce Advocacy & Com /05/07 31/01/08 Subtotal - International Subtotal - Domestic TOTAL 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) Mobilizing Existing Capacities in Delivering Results: Actual Consultants Inputs O-1

108 Appendix O.1 - BDetails of Consultants Inputs COMPONENTS/CONSULTANT S EXPERTISE # of Person- Months / Contract Details of Consultants Inputs F42 Contract Duration CY 2006 CY 2007 CY 2008 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 Part A Overall Support to Harmonization 1. Results-Based Management /03/06 30/04/ Project Management /03/06 30/04/ Part B-1: Procurement 3. Procurement (Int l) Procurement /03/07 30/11/ Procurement /10/07 31/12/ Procurement (Training) /05/07 30/11/ Part B-2: Financial Management & Audit 7. PFM Audit (Int l) /10/06 30/11/ PFM Accounting /11/06 30/11/ Part C: Performance-Based Budget Processes 9. OPIF (Int l) OPIF /03/07 15/08/ OPIF /03/07 31/12/ OPIF (Deceased June 2007) /03/07 15/08/07 NA 13. OPIF (Manual Preparation) /09/07 30/04/ M Ave. Working Days / Month F43 42 Positions of international Consultants are indicated with (Int l), otherwise all others are domestic Consultants working days per month Details of Consultants Inputs O-2

109 # of Contract Duration CY 2006 CY 2007 CY 2008 Ave. COMPONENTS/CONSULTANT S Person- Working EXPERTISE Months / Start 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 Days / Contract Date Month F43 Part D-1: Project Quality at Entry Environment 14. Social Safeguards (Environment) /06/06 31/01/ EIA Specialist /05/07 30/09/ EIA EIC Specialist /05/07 30/11/ EIA IT Specialist /05/07 31/10/ Part D-2: GAD Specialist 18. GAD Specialist /07/06 30/11/ Part D-3: Project Quality at Entry LAR 19. Social Safeguards (LAR/IR) /07/06 15/03/ Land Valuation /05/07 17/10/ Advocacy & Communication /05/07 31/01/ Subtotal International 6.0 Subtotal Domestic TOTAL Details of Consultants Inputs O-3

110 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-1 List of Members of the HC, TWGs and ADB-TA Team

111 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-2 List of Members of the HC, TWGs and ADB-TA Team

112 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) Ms. Leah Patian (Administrative Assistant)F 4. Ms. Ena Manansala (Administrative Assistant)F Ms. Donna Lacuna (Sr. Administrative Staff)F Ms. Jane Barcenas (Staff Consultant) F Mr. Sherwin Arriola (Tempo Staff)F Mr. Vincent Aristoreles (Tempo Staff)F Ms. Sheila Molvizar (Tempo Staff)F 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 Active Participation of Counterpart GOP Officials and Personnel: P-3 List of Members of the HC, TWGs and ADB-TA Team

113 Appendix Q - BDelivering on Results: Achievement of Outputs & Outcomes Preliminary Assessment on the Achievement of Outputs and Outcomes (Draft 30 April 2008) Results 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 Outcomes Part A Part A. Sustainable implementation of the Paris Declaration at the country level Performance Targets/Indicators Planned Actual Remarks More resources and budget allocated to propoor public investments; lower or no attrition of proposed projects; and improved implementation of development projects 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 2 nd 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-1

114 Results on harmonization, harmonization action plan, and monitoring framework Performance Targets/Indicators Planned Actual Remarks 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 (by all TWGs) Baseline Study (2005/2006) on indicators of GOP s commitment to Paris Declaration was completed 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). 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 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 Delivering on Results: Achievement of Outputs & Outcomes Q-2

115 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-3

116 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 Part B-1 Report on the rollout of generic procurement manuals and the professionalization program for procurement practitioners OUTPUTS COMPLETED 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. 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 Delivering on Results: Achievement of Outputs & Outcomes Q-4

117 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; and 4. 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 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-5

118 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) Accounting Standards (IPSAS) and International Financial Reporting Standards (IFRS) o Integrate Organizational Performance Indicator Framework (OPIF) in NGAS/e-NGAS/Budget System 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 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 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-6

119 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 performancebased 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 resultsbased 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 Outputs Part C: Performance-Based Budgeting 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 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. 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 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 COMPLETED Follow-up Activities Needed to strengthen RBM and OPIF as tools in improving performancebased planning and budgeting OPIF Roll-out to State Universities/Colleges (SUCs) and to Agencies Delivering on Results: Achievement of Outputs & Outcomes Q-7

120 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 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 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 April 2008 with the support of senior officials of DBM 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 Strengthening the application of EIAs and deepening Part D.1 - Streamlined and Revised and easier common procedures for projects Follow-up Activities Needed to further Delivering on Results: Achievement of Outputs & Outcomes Q-8

121 Results improved project processing procedures enhancing quality at entry of projects, especially in environmental impact assessment (EIA) system Performance Targets/Indicators Planned Actual Remarks 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 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 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 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. 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-9

122 Results Performance Targets/Indicators Planned Actual Remarks Revised EIA Procedural Manual (per EMB MC 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). streamlined EIA Process EMB/DENR utilized its budget in the initial printing and reproduction of the draft EIA Procedural Manual and other related expenses Outputs Part D-1: Improving Project Quality at Entry Environment 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 OUTPUTS COMPLETED 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-10

123 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; 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-11

124 Results Performance Targets/Indicators Planned Actual Remarks in Baguio; 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-12

125 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 Outputs Part D-2: Improving Project Quality at Entry Gender and Development (GAD) Workshops and training on GAD guidelines; standardized manual in applying GAD guidelines in project preparation and evaluation Report completed; workshops and training conducted Early indication already in place on achievement of outcome of completion and implementation of revised GAD Guidelines. 2 nd 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. 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 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 COMPLETED 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-13

126 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 2 nd Edition. Revised draft GAD Harmonized Guidelines presented to the ODA GAD Network for review and approval 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 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 2 nd Edition of Harmonized GAD Guidelines Completed 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 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. Delivering on Results: Achievement of Outputs & Outcomes Q-14

127 Results especially in land acquisition and resettlement (LAR) Performance Targets/Indicators Planned Actual Remarks 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) 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. OUTPUTS COMPLETED 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-15

128 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 National Resettlement Policy Enhancement and Capacity Building (2000); and RETA 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-16

129 Results Performance Targets/Indicators Planned Actual Remarks Draft Joint Circular prepared on the Adoption and Implementation of the Standard Land Valuation Methodology Delivering on Results: Achievement of Outputs & Outcomes Q-17

130 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

131 Republic of the Philippines Department of Environment and Natural Resources Visayas Avenue, Diliman, Quezon City, 1100 Tel. Nos. (632) to29 (632) to to 43 SPECIAL ORDER NO 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. 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