Series #:09/02 Contacts for the World Bank:
In Manila: Dave Llorito (632) 917-3047
E-mail: dllorito@worldbank.org
Kitchie Hermoso (632) 917-3013
E-mail: mhermoso@worldbank.org Contact for the National Economic and Development Authority:
Victoria T. Viterbo - Quimbo
Direct Line (632) 631-3744
Email: VQuimbo@neda.gov.ph MANILA, August 28, 2008 —The Philippine government and the World Bank (WB) have agreed to enhance the current set of “readiness filters” in the programming of development programs and projects to optimize official development assistance (ODA). This is one of the highlights of the Joint Philippines-World Bank Portfolio Review Wrap-Up held at the Discovery Suites in Ortigas Center, Pasig City yesterday with the National Economic and Development Authority (Neda), Department of Budget and Management (DBM), and Department of Finance (DOF). Representatives from the Department of Public Works and Highways (DPWH), Department of Agriculture (DA), Department of Education (DepEd), Department of Health (DOH), Department of Justice (DOJ), Metro Manila Development Authority (MMDA), LGU Guarantee Corporation (LGUGC), Land Bank, and Development Bank of the Philippines (DBP) participated in the review wrap-up. The portfolio review wrap-up came a day after National Economic and Development Authority (Neda) director general Ralph Recto called on government agencies to target a full disbursement rate to improve the efficiency of use of funds for government programs and projects. The wrap-up is part of the effort led by the Neda—in coordination with the Asian Development Bank (ADB), Japan Bank for International Development (JBIC), and WB—to review the performance of the Philippine government’s ODA portfolios to identify measures that would improve the country’s absorptive capacity and speed up the implementation of development programs and projects. Many of these projects are funded by the three international development partners. “We are encouraged by the success of these joint undertakings with our development partners,” said Rolando G. Tungpalan, Neda’s deputy director-general for investment programming. “It’s part of our on-going efforts to harmonize business process between funding institutions and government agencies to further enhance aid effectiveness and reduce transactions costs.” The review covered all 130 active ODA loan-funded program and projects from January 1 to December 2007 and 89 ODA grant-assisted projects involving 37 agencies, including 23 national government agencies, 10 government-owned and controlled corporations, three financial government institutions, and one local government unit. The review noted substantial improvement in the disbursement of ODA funds, reaching 86 percent in 2007 as compared to 80 percent in 2006. Tungpalan said this improvement in disbursement should help alleviate poverty and enhance delivery of social services. “The improvement is largely due to the efforts of the government to enhance aid effectiveness through measures like better interagency coordination and harmonization of business processes,” he said. Among the “readiness filters” considered during the review wrap-up are institutional readiness of the proponent agency, including availability of technical skills within the agency and budget space to accommodate project requirements; strong ownership within the proponent agency as manifested by the presence of a strong champion within the organization, clear support from oversight agencies, clear involvement from other agencies, and participatory processes with project beneficiaries; and robust risk analysis. “It’s important that we have ready-to-go projects even before we submit them to the Investment and Coordinating Committee (ICC),” explained Tungpalan.
Maryse Gautier, World Bank portfolio and operations manager and deputy country director, said, “We welcome the proposal of the government to set up these readiness filters at an early stage of project development. These filters can still be fine-tuned to include contribution to poverty reduction, support for inclusive growth, positive impact on fiscal stability, and adequate focus on good governance. They will also help identify prioritites for our Country Assistance Strategy (CAS) currently under preparation”. Other measures considered are better coordination and dialogue with agencies, involvement of local government units especially in resolving constraints like right-of-way issues, rationalization of the government bureaucracy, and capacity building among government agency staff. NEDA Project Monitoring Staff Director Roderick M. Planta, who leads the government-driven portfolio review, reaffirmed the commitment to push for the set of measures to ensure not only implementation efficiency but also the attainment of development objectives. “The World Bank is very much willing to support all these measures, including capacity building programs to help the country improve efficiency in the use of funds for programs and projects that would hasten economic growth and development,” added Gautier. XXX For information on the World Bank’s support to the Philippines, please visit www.worldbank.org.ph |
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