Technical Assistance Consultant s Report

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1 Technical Assistance Consultant s Report Project Number: June 2012 Socialist Republic of Viet Nam: Support to Improve Portfolio Performance and Aid Effectiveness (Financed by ADB s Technical Assistance Special Fund) Inception Report (June 2012) Prepared by Nguyen Viet Dung Institutional Development Specialist/Team Leader For Asian Development Bank This consultant s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project s design.

2 TA 8034VIE: Support to Improve Portfolio Performance and Aid Effectiveness INCEPTION REPORT Prepared by NGUYEN VIET DUNG Consultant Team Leader Viet Nam Resident Mission Ha Noi, June 2012

3 ABBREVIATIONS AA Advance Actions ADB Asian Development Bank EA Executing Agency DMF Design and Monitoring Framework FERD Foreign Economic Relation Department FS Feasibility Study IA Implementing Agency IMTF InterMinisterial Task Force JAP Joint Action Plan JPPR Joint Portfolio Performance Review MOF Ministry of Finance MONRE Ministry of Natural Resource and Environment MPI Ministry of Planning and Investment PDO Project Detailed Outline PMU Project Management Unit PPSSF Project Preparation Support Facility TA Technical Assistance i

4 TABLE OF CONTENTS ABBREVIATIONS..i TABLE OF CONTENTS ii I. INTRODUCTION... 1 II. TECHNICAL ASSISTANCE DETAILS... 1 A. TA duration:... 1 B. TA Impact and Outcomes... 1 C. TA Outputs and Activities... 2 Output 1: Harmonization of ODA Procedure... 2 Output 2: Achievement of Project startup compliance... 2 Output 3: Strengthening of Institutional mechanism for join portfolio management... 3 Output 4: Strengthening of capacity for ODA project management... 4 Output 5: Institutionalization and implementation of results of dialogues on ODA effectiveness... 5 D. TA Resources... 5 E. Implementation Arrangements... 5 III.TA STARTUP ACTIVITIES... 6 IV. IMPLEMENTATION APPROACH AND METHODOLOGY... 6 A. Consultation and Collaboration among TA project Stakeholders... 6 B. Facilitate and enhance ongoing policy dialogues... 7 C. Resultbased management with indicators... 7 V. IMPLEMENTATION PLAN... 8 VI. MONITORING, REPORTING AND EVALUATION... 9 VII. FINANCIAL AND BUDGET PLAN... 9 VIII. CONSULTANT PERSONNEL PLAN ATTACHMENTS Attachment 1. Implementation Plan Attachment 2. Training Plan. 14 Attachment 3. Procurement Plan Attachment 4. Personnel Schedule Attachment 5. Updated Design and MonitoringFramework ii

5 I. INTRODUCTION 1. Official Development Assistance (ODA) has been an important catalyst for Viet Nam s rapid economic development since resumed ODA assistance from international development partners in However, portfolio performance as reflected in indicators such as disbursement, project startup compliance and average loan extension has deteriorated in 2004 and improved in 2009, but slid back in Some portfolio performance indicators in Viet Nam are worst than those of other Southeast Asia countries. This situation requires that ODA utilization and management in Viet Nam needs to be improved toward contribution to better aid effectiveness. 2. ADB s portfolio performance review in 2010 and 2011 identified main constraints that need to be solved for improvement of portfolio and aid effectiveness, which among others include (i) lack of harmonized procedures on ODA project management, (ii) project startup delays, (iii) limited effectiveness of joint portfolio performance management mechanism, (iv) project management capacity constraints, and (v) delays in institutionalization of results of dialogue between Government and development partners on aid effectiveness. 3. The Government highly appreciates and requests supports to improve portfolio performance and aid effectiveness from the international development partners in general and the Six Banks in particular. In response to Government request, the first ADB technical assistance (TA) to enhance ODA absorptive capacity and efficiency was implemented from October 2007 to August As continuation of ADB support, this TA, which is financed by ADB, will provide consultancy services, both international and national, to support the Government in improvement of portfolio performance and aid effectiveness focusing on dealing with the above mentioned constraints. This TA will not only build on results achieved in previous TA, but will further institutionalize the outcomes of the policy dialogue between Government and the Six Banks, especially Joint Action Plan 2 (JAP 2) and dialogue results thereafter. 4. The purpose of this report is to set out clear approach and methodology to implement the TA; present implementation plan, activities, timeframe and resources to implement the TA assignment. II. TECHNICAL ASSISTANCE DETAILS A. Duration 5. The TA will be implemented from 1 June 2012 to 30 November B. Impact and Outcomes 6. The TA impact will be effective utilization of ODA resources. The outcome will be improved portfolio performance of ADBfinanced projects in Viet Nam. 1

6 C. Outputs and Activities 7. The TA will produce the following outputs and activities: Output 1: Harmonization of ODA Procedures (Jun Oct 2012) (i) Activity 1: Propose provisions relating to advance actions (AA) and project detailed outlines (PDO), among others, to new Decree/Circular on ODA (JunJul 2012). This includes preparation of legal provisions regarding AA and PDO to be included in the new decree and circular on ODA being prepared under other TA. This Activity will be done in three subactivities below. Prepare provisions of AA and PDO in new Circular on ODA Obtain comments from ADB and the Ministry of Planning and Investment (MPI) Finalize the AA and PDO provisions based on comments received (ii) Activity 2: Update the Blue Book following issuance of new decree on ODA management and utilization (AugOct 2012) The task includes updating the current Handbook on Processing and Implementation of ADB Financed Projects in Viet Nam (the Blue Book) published in 2009 incorporating new provisions of ADB s related guidelines and Government s regulations on ODA including ADB s Streamlined Business Process and Government s new Decree on ODA. This activity will be done in three subactivities below. Update the Blue Book Obtain comments from MPI and ADB Finalize the Blue Book based on comments received Output 2: Achievement of Project startup compliance (Jun 2012 Nov 2014, Intermittent) (i) Activity 1: Prepare guideline for AA implementation in ADBfinanced projects (Jul 2012) The consultant task is to prepare guideline for implementation of AA by executing and implementing agencies and other related bodies. The guideline will guide to identify AAs, and include procedure for implementation. (ii) Activity 2: Identifying AAs for projects to be approved from 2012 onward (JulSep 2012) The activity includes working with ADB and Government s projects implementing agencies to identify projects financed by ADB from 2012 onward, preparation of specific AAs that may apply for each of those projects, and support Government s project implementation agencies in preparing AA implementation plans. This task will be done in two subactivities below. Work with ADB officer to identify the projects to be processed in 2012, 2013 and 2014 Work with executing agencies (EAs) and project management units (PMUs) to prepare AAs and their implementation plans for each of these projects. 2

7 (iii) Activity 3: Monitoring the implementation of AA projects (Aug 2012 Nov 2014, Intermittent) The activity includes supporting Government project implementation agencies in monitoring and evaluation of AAs implementation, and reporting progress to ADB and MPI. This activity will be done in two subactivities below. Support in monitoring the AA implementation in accordance with approved implementation plan Report on AA implementation monitoring (iv) Activity 4: Support and facilitate preparation of PDO and FS for PPSSF project, which will speed up preparation and startup of ADB financed projects (JunJul 2012) The activity includes supporting MPI in preparation of PDO and feasibility study (FS) for the Project Preparation and Support Facility (PPSSF) project, which will support Government executing agencies and implementing agencies in improvement of Government capacity to fasttrack the preparation and implementation of ODAfinanced projects in Viet Nam, including capacity building for executing and implementing agencies and project management units, improved quality at entry and shortened project preparation and implementation startup periods of ADBfinanced projects in Viet Nam. This activity will be done with three subactivities below. Support the Foreign Economic Relations Department (FERD) of MPI to prepare PDO and FS Review and comment by MPI Finalization and submission for approval PDO (by Government) and FS (by MPI) Output 3: Strengthening of Institutional mechanism for joint portfolio management (i) Activity 1: Conduct periodically project site inspection and systematic quarterly portfolio performance review meetings on problematic projects (Aug 2012 Nov 2014, Intermittent). The activity is to support MPI in monitoring problematic projects, including travelling, to problematic projects for inspection with MPI staff and conduction of meetings with participation of concerned agencies to solve the problems of those projects. This activity will be done with three subactivities below. Support MPI in Identifying problematic projects Support in finding remedy measures for each of problematic projects, and prepare reports/materials as needed Support in conducting quarterly portfolio performance review meetings on these projects (ii) Activity 2: Conduct annual and midterm country portfolio review in 2012, 2013 and 2014 to review ADB portfolio performance (Dec 2012 Nov 2014, Intermittent) (iii) Activity 3: Followup on JPPR VII and JPPR VIII in Jun 2013, including monitoring status of JAP2 implementation focusing on AA (Oct 2012 Nov 2014, Intermittent). 3

8 Since 1999 the Government and the Six Banks have met every two years which is called Joint Portfolio Performance Review meeting (JPPR) to discuss the status of overall ODA assistance, including the review of projects and programs, implementation, and measures to overcome difficulties and bottlenecks in ODA management. As result of these discussions, Joint Action Plans (JAPs) has been agreed between both sides. During JPPR VI in 2009, JAP2 was agreed by both sides, and the Government through issuance of Decision 747/2010/QDBKH on 28 May 2010 has institutionalized this JAP to implement this action plan. JPPR VII was organized in 2011 and JPPR will be organized in The Consultant s task is to followup on these JAPs focusing on monitoring AA. (iv) Activity 4: Consolidate targeted sector outputs results framework and Update sector result framework monitoring matrix (Sep 2012) ADB s Country Partnership Strategy (CPS) set out the outputs for specific sectors of the country. Consultant task is to consolidate sector outputs results framework and update available sector result framework monitoring matrix. (v) Activity 5: Monitor the achievement of targeted sector outputs using result framework (Oct 2012 Nov 2014, Intermittent) (vi) Activity 6: Develop and maintain an Excel based database in MPI (Sep 2012) FERD is focal agency of MPI in ODA portfolio management of the country. Currently, FERD does not have computerbased management tool to help them fulfill their responsibility. Consultant will support FERD to develop a simple database at FERD which is based on Microsoft Excel application. Output 4: Strengthening of capacity for ODA project management (Jul 2012 Nov 2014, Intermittent) (i) Activity 1: Conduct training and capacity building needs assessment (Jul 2012) Project management capacity constraints is one of the main reasons that cause delay in project implementation in Viet Nam. Consultant team will work with each of ADBfinanced project implementation agencies to identify their need of training and capacity building. To identify training needs, training courses received, training demand and the gaps at implementation agencies/ PMUs will be defined (refer to Annex1 for details). Interview and questionnaire will be used as method to collect data and information. (ii) Activity 2: Develop training program (training for EAs/IAs/PMUs staff) and training materials (AugOct 2012) Training material will be prepared separately for specific topics relating to project cycle management and indicating time duration for the training courses corresponding to number of topics needed by project management agencies (see Annex 2 for details). (iii) Activity 3: Conduct quarterly trainings up to 2014 (Sep 2012Sep 2014, Intermittent) The training will be carried out for every quarter of the years, from September 2012 to November Training for project implementation agencies will be in form of the followings. Project management training courses Consultation workshops 4

9 (iv) Activity 4: Evaluation of training program Evaluation report will be submitted at the end of the training program. The report covers number of training courses organized, trainees participated, evaluation as to whether objectives have been achieved, lessons learn etc. Output 5: Institutionalization and implementation of results of dialogues on ODA effectiveness (Aug 2012 Nov 2014, Intermittent) (i) Activity 1: Prepare reports for consultative group meetings in December 2012, 2013 (Dec 2012 Jun 2014, Intermittent) Consultant team will support MPI in preparation of reports for consultative group meetings in December 2012 and The report preparation is done in close cooperation with MPI s related offices and staffs. (ii) Activity 2: Develop PostBusan Monitoring Framework (Sep 2012) International high level forum in aid effectiveness was organized in Korea in Consultant team will support MPI in developing monitoring framework to followup on the results of this forum. (iii) Activity 3: Prepare the survey on Aid Effectiveness (Aug 2012) D. TA Resources 8. The TA will require the following resources: (i) Individual Consultants (ii) Equipment and office supplies (iii) Training, seminars, and conferences (iv) Miscellaneous administration and support costs E. Implementation Arrangements 9. MPI will be Executing Agency of the TA. MPI will set up a TA project management unit within PERD to manage daily implementation of the TA. The TA will work closely with Interministerial Task Force (IMTF) to make sure that government agencies are involved with TA implementation. To this end, some ones who are member of the IMTF and concurrently participate in PMU will contribute much benefit for the TA implementation. 10. The TA implementation will be supported by a team of individual international and national consultants, totaling 43 personmonths, in expertise of institutional development, portfolio management, capacity building and economics. The individual consultants will be selected by ADB in accordance with ADB Guidelines on the Use of Consultants. 11. The TA expected outcomes will be jointly monitored and evaluated by the MPI and ADB during TA inception, midterm, and final review missions. TA progress will be made on a quarterly basis and discussed semiannually between ADB with MPI and other relevant Government agencies. Baseline data on portfolio performance such as contract awards, disbursement rate, startup compliance, and number of projects at risk will be monitored during the course of the TA. 5

10 III. TA STARTUP ACTIVITIES 12. Team Leader has been recruitment as advance action and he will serve from beginning of the TA 13. Some discussions among TA Consultant, ADB and MPI with regard to required outputs, settingup TA office and implementation plan have been taken place. As a result, there were some changes to activities estimated at the time of TA preparation. 14. Office space needs to be provided by MPI as soon as possible. Administration assistants and office equipment also need to be procured in July 2012 to enable operation of the consultant team. IV. IMPLEMENTATION APPROACH AND METHODOLOGY A. Consultation and Collaboration among TA project Stakeholders 15. Working closely among ADB, other Development Donors, MPI as Government s TA Executive Agency and EAs/IAs/PMUs of ADB financed projects is important for the success of TA implementation. 16. Following current arrangement, ODA Portfolio performance management at the policy level involves mainly with MPI and the Donors, and also with other Government s relevant ministries such as MOF, SBV, and MONRE. At project level, sector ministries, provinces and other project stakeholders are also involved in portfolio management. 17. Portfolio management and aid effectiveness issues have been concerned by the Government and international donors for many years. These issues have been dialogued frequently at Consultative Group meetings, Aid Effectiveness Forums such as Joint Portfolio Performance Review, InterMinisterial Task Force meeting with the Six Banks. The Government highly appreciates and utilizes the results of these discussions as inputs for adjusting and finalization of its laws, decrees, and circulars. 18. This TA is designed based on not only recommendation of ADB s portfolio performance review but also results of Government and International partners dialogues. The implementation of the TA s activities, therefore, needs to be in collaboration and consultation with the above mentioned agencies. Due to consultation and collaboration process, consensus on targets, timing, action plan etc. will be obtained among stakeholders involved. This is very important factors for consultant performance success. 19. The focal agencies/ organizations that the consultant team needs to consult and collaborate during performance of the assignments are: (i) Government: PMU (under FERD), MPI, IMTF, EAs/IAs/PMUs of problematic projects and ADB financed projects (ii) International Development Partners: the Six Banks, especially ADB 6

11 B. Facilitate and enhance ongoing policy dialogues 20. As presented above the TA impact, outcomes, outputs and activities are designed based on present constraints found at Government and the Six Banks dialogues. Implementation of activities under the TA is expected to solve these constraints, and therefore improve aid effectiveness in Viet Nam. Any activities and initiatives carried out under the TA must target to facilitation and enhancement of ongoing dialogues between the Government and the Six Banks. 21. Since 1999 the Government and the Six Banks have met every two years to discuss the status of overall ODA assistance, including the review of projects and programs, implementation, and measures to overcome difficulties and bottlenecks in ODA management. In 2004 the Government established the IMTF to assist the Government, in cooperation with the Six Banks, to effectively manage ODA. As an outcome of the Fifth JPPR (JPPRV) between IMTF and the Six Banks, which was conducted in May 2007, a Joint Action Plan (JAP1) was developed. Implementation of JAP1 was officially instructed by Government Decision 883/2008/QDBKH dated 14 July 2008 for the period which comprised: (i) harmonization of the Government s PDO and the donor s Project Concept Paper; (ii) use of Common Feasibility Study Guidelines as instructed by Decision 48/2008/QDTTg on 3 April 2008; (iii) implementation of Advance Action; (iv) Procurement Reform and Harmonization; (v) reform of Cost Norms system; (vi) improvement of Payment & Disbursement procedures, and Budget Management; (vii) use of Aligned Monitoring Tools for project reporting as instructed by Decision 803/2007/QDBKH on 30 July 2007; (viii) reform of legal framework on Project Management Units (PMU); and (ix) harmonization of Resettlement and Environment Impact Assessment policies and procedures. 22. In October 2009 the Sixth Joint Portfolio Performance Review (JPPRVI) was held to discuss the issues addressed in JPPRV and reinforcement of JAP1 to include two additional items, namely: (i) improvement of Contract Management; and (ii) improvement of procedures for making adjustments and changes of scope during project implementation. Subsequently the Six Banks proposed the second Joint Action Plan (JAP2), which was adopted by the Government through issuance of Decision 747/2010/QDBKH on 28 May 2010 for the stage. 23. In Dec 2011 the Seventh Joint Portfolio Performance Review (JPPRVII) was held. As result of the dialogue, the next JAP has been agreed. The Government is now preparing new Decision which cover mutual agreement on the meeting. JPPR VIII is scheduled to be held in June One of the Consultant tasks under the TA is to followup on JPPR VII and JPPR VIII in Jun 2013, including monitoring status of JAP 2 implementation focusing on AA. C. Resultbased management with indicators 25. The TA scope is large and its intervention nature is comprehensive. The TA will address both management and operational levels of Government s ODA management arrangement, cover aspects of institution, procedure, and capacity. The TA stakeholders include Government 7

12 agencies that are at policy making levels and project operational level, the Six Banks, civil social organizations etc. 26. Portfolio performance management has been discussed for many years and there have been some technical assistance that more or less relate to this TA, and have contributed to improve portfolio performance in Viet Nam. As a tool for monitoring and evaluation of this TA implementation, a detailed design and monitoring framework will be set up and implemented. This is crucial for monitoring as to whether the TA objectives have been achieved. V. IMPLEMENTTATION PLAN 27. The TA will be implemented within two and half years, from June 2012 to November In line with the above approach and methodology, the TA implementation plan will describe detailed actions to be carried out for each month of the TA life and is structured according to outcomes, outputs and activities described above. In summary, the TA will be implemented by year as follows: Year 1 (June 2012 to June 2013) (i) Setting up Executing Agency s PMU and the TA office (ii) Procurement of office equipments: Desktop: 01; Laptop: 01; Laser Printer: 01; Photocopier: 01; LCD Projector and screen: 01 (refer to Attachment 2 Procurement Plan for details) (iii) Selection of individual consultants (refer to Attachment 2 Procurement Plan for details) (iv) Review the TA documents and prepare Inception Report including approach and implementation plan to implement the tasks (v) Conduct works relating to harmonization of procedures in connection with ongoing revision of ODA legal framework of the Government, which are: Advance actions PDO Updating the Hand book on Project Processing and Implementation for ADBfinanced Projects in Viet Nam (the Blue Book) (vi) Conduct assessment of training and capacity building needs and develop the training program (vii) Evaluation of advance action implementation in ADB financed pilot project (viii) Support in develop Excelbased database (ix) Conduct annual (Dec 2012) and midterm country portfolio review (Jun 2013) (x) Conduct site inspection and systematic quarterly portfolio review meetings on problematic projects (xi) Followup on JPPR VII and VIII, focusing on advance actions (xii)support MPI in developing post Busan monitoring framework (xiii) Reporting: Annually report (Dec 2012) 8

13 Quarterly reports (September 2012, Mar 2013, Jun 2013) Year 2 (Jul 2013 to June 2014) (i) Conduct training courses (ii) Test and finalize Excelbased database (iii) Conduct annual (Dec 2013) and midterm country portfolio review (Jun 2014) (iv) Conduct site inspection and systematic quarterly portfolio review meetings on problematic projects (v) Followup on JPPR VII and VIII, focusing on advance actions (vi) Reporting TA Interim report (Jul 2013) Quarterly reports (September 2013, Mar 2014, Jun 2014) Annually report (Dec 2013) Year 3 (Jul 2014 to November 2014) (i) Conduct training courses and evaluation of training program (ii) Conduct project site inspections and systematic quarterly portfolio review meetings on problematic projects (iii) Followup on JPPR VII and VIII, focusing on advance actions (iv) Reporting: Quarterly reports (September 2014) Draft final report (31 Oct 2014) Final report (30 Nov 2014) (Refer to Attachment 1 for TA Implementation Plan in form of diagram showing activities versus timeframe, Attachment 2 for the training plan and Attachment 3 for the Procurement Plan). VI. MONITORING, REPORTING AND EVALUATION 28. At the time of TA preparation, a design and monitoring framework (DMF) has been prepared. In this Inception Report the DMF will be updated taking into account discussions among TA consultants, ADB and MPI. DMF is important to monitoring and evaluation of TA performance. DMF presents the impact, outcomes, outputs, activities and resources in a box matrix where the boxes are linked logically together. Each activity will have its own performance target and indicator with baselines to check if it has completed or not. The DMF follows resultbased management method required by the ADB. (Refer to Attachment 5 for updated DMF) 9

14 VII. FINANCIAL AND BUDGET PLAN F. ADB finance 29. ADB will provide financing for: (i) Individual Consultants (ii) Equipment and office supplies (iii) Training, seminars, and conferences (iv) Miscellaneous administration and support costs (v) Contingencies G. Government contribution 30. Government contributions comprise counterpart support in form of counterpart staff remuneration and office spaces. VIII. CONSULTANT PERSONNEL PLAN 31. Consultant team includes 4 local individual consultants and 2 international individual consultants, totaling 43 personsmonths, recruited by ADB. Service timings for each of the consultant are as follows: International: (i) Institutional Development Specialist: 5 months (ii) Portfolio Management Specialist: 3 months National: (i) Team Leader/Institutional Development Specialist: 20 months (ii) Portfolio Management Specialist: 10 months (iii) Economist: 04 months (vi) Capacity Building Specialist: 01 month 32. In line with implementation plan presented in item V above, the Personnel Schedule that show detailed service timings of each individual consultant for the whole TA period is presented in Attachment 4 attached. 33. The plan has taken into consideration of minimizing number of international consultant service sessions to save international travelling costs. 10

15 ATTACHMENT 1: IMPLEMENTATION PLAN Table 1.1 Overall Implementation Plan Activity/Output J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D 1.Procedures for ODA management harmonized 1.1 Advance actions (AA) Assessment Preparation of AA in new circular Preparation of AA guidelines 1.2 Project Detailed Outline (PDO) Preparation of PDO in new circular 1.3 Revision to Blue Book 2. Project startup compliance 2.1Prepare guideline for AA implementation in ADBfinanced projects 2.2Identifying AAs for projects from 2012 onward 2.3 Monitoring and evaluation of AA 2.4Support preparation of PDO and FS for PPSSF 3. Institutional mechanism for join portfolio management 3.1 Portfolio performance review meetings on problematic projects 3.2 Conduct annual and midterm country portfolio review iii. Followup on JPPR VII and JPPR VIII, including monitoring of JAP Followup on JPPR VII and JPPR VIII, including monitoring of JAP 2 v. Set up M&E, and monitor the achievement of targeted sector outputs 3.4 Consolidate targeted sector outputs results framework ii. Conduct annual and midterm country portfolio review in 2012, Monitor the achievement of 3.4 using result framework iv. Consolidate targeted sector outputs results framework 3.6 Develop and maintain an Excel based database in MPI 4. Capacity for ODA project management strengthened 4.1 Conduct training and capacity building needs assessment 4.2 Develop training program (EA staff) and training materials 4.3 Conduct quarterly trainings up to Results of dialogues on ODA effectiveness institutionalized 5.1 Prepare reports for CG meetings in 2012, Develop Post Busan Monitoring Framework 5.3. Prepare the survey on Aid Effectiveness 11

16 Table 1.2 Annual Implementation Plan (June 2012 June 2013) Outputs 1.Procedures for ODA management are harmonised Activities 1.1 Propose provisions relating to AAs and PDO: a. Assess pilot AA b. Prepare provisions of AA and PDO in new Circular c. Get comments from MPI, donors and finalize AA and PDO Time Frame Jun Jul2012 Jun 2012 Jun 2012 Done By TL;NPMS TL TL; Jun Ju l Aug Sep Oct Nov Dec Jan Feb Mar Apr May Ju n 1.2 Update the Blue Book: a. Prepare updated Blue Book b. Get comments from MPI and ADB, and finalize it Jul 2012 AugOct 2012 AugSep 2012 Sep Oct 2012 TL,NPMS TL TL, TL, 2. Project startup compliance achieved 2.1Prepare guideline for AA implementation in ADBfinanced projects 2.2 Identifying AAs for projects to be approved from 2012 onward: a. Identify the projects to be prepared b. Work with EAs/PMUs, prepare AAs and get approval on AAs Jul 2012 TL JunSep 2012 JunJul 2012 JulSep 2012 TL; ADB team TL, ADB team TL; NPMS 2.3 M&E of AAs Aug 2012 Jun 2013 TL; NPMS 2.4 Support and facilitate preparation of PDO and FS for PPSSF project Jun Jul 2012 TL 3. Institutional mechanism for join portfolio management strengthened 3.1 Conduct quarterly portfolio performance review meetings on problematic projects: a. Identify problematic projects b. Project site Inspections c. Conduct quarterly portfolio performance review meetings 3.2 Conduct annual and midterm country portfolio review in 2012, 2013 Aug 2012 Jun 2013; Aug 2012 Aug 2012 Jun 2013 III, IV, 2012; I,II 2013 Dec 2012 June 2013 IPMS, NPMS, TL. NPMS,TL NPMS,NPMS, IPMS,PMS,TL IIDS; IPMS; NE,TL 3.3 Followup on JPPR VII and JPPR VIII in Jun 2013, including monitoring status of JAP 2 implementation Sep 2012 June 2013 TL; IPMS; NPMS, NE 12

17 focusing on AA. 3.4 Consolidate targeted sector outputs results framework and update sector result framework monitoring matrix 3.5 Monitor the achievement of targeted sector outputs using result framework Nov 2012 Dec 2012 Jun 2013 NPMS, NE IPMS, NPMS, NE 3.6 Act.6: Develop and maintain an Excel based database in MPI AugOct 2012 IPMS; NPMS 4. Capacity for ODA project management strengthened 4.1 Conduct training and capacity building needs assessment (Annex 1) JulAug 2012 NCBS 4.2 Develop training program and training materials Sep Oct 2012 TL; LCBS (Annex 2) a. Project management b. Consultation workshops 4.3 Conduct quarterly trainings up to Jun 2013 Sep 2012 Nov 2014 TL;IIDS, NCBS 5. Results of dialogues on ODA effectiveness institutionalized and implemented 5.1 Prepare reports for consultative group meetings in 2012, Develop Post Busan Monitoring Framework 5.3 Prepare the survey on Aid Effectiveness Dec 2012 Jun 2013 Sep 2012 Aug 2012 TL; IIDS, IPMS, NE TL, NE TL;IIDS, IPMS Notes: TL: Team Leader/National Institutional Development Specialist; IIDS: Inter Institutional Development Specialist; IPMS: International Portfolio Management Specialist NPMS: National Portfolio Management Specialist; NCBS: National Capacity Building Specialist NE: National Economist 13

18 No. Agencies ATTACHMENT 2. TRAINING PLAN Table 2.1. Assessment of Training needs Review of training received and demand Gap and Training need indentified Trainings received Training demand Gaps Training Needs 1 TBD TBD TBD TBD TBD 2 TBD TBD TBD TBD TBD 3 TBD TBD TBD TBD TBD (Note of TBD: To be determined after carrying out of training needs assessment). Table 2.2. Tentative Training Program Project management/consultative Objective # of Trainee Place Time Budget No. Workshop Training s 1 ODA, Planning, and Project cycle Understand overall ODA management TBD TBD TBD 1 day TBD 2 Project Preparation/Design (PDO, FS) Provide skills in design of project TBD TBD TBD 2 days TBD 3 Project Startup and Advance Actions Understanding importance of project TBD TBD TBD 2 days TBD startup, AA and implementation 4 Project Implementation and Provide overall tasks during TBD TBD TBD 2 days TBD Administration implementation of project 5 Financial Management /Accounting Provide skills in financial management TBD TBD TBD 1 days TBD and Disbursement accounting and disbursement 6 Project M&E Provide skills in monitoring, reporting TBD TBD TBD 1 day TBD and evaluation in ODA project 7 Procurement Provide skills in procurement of TBD TBD TBD 2 days TBD works/goods and Consultant selection. 8 Contract Management and design Provide skills in management of a certain TBD TBD TBD 1 days TBD change contract, including variation of contract due to change of design. (Note of TBD: To be determined after carrying out of training needs assessment). 14

19 No. Packages I II Office Equipments 1 01 Desktop; 01 Laptop; 01 Laser Printer; 01 Photocopier; and 01 LCD Projector and screen. Individual Consultants International ATTACHMENT 3: PROCUREMENT PLAN No. of package Procurement Method Selection Time 1 Shopping Jul Aug Institutional Dev. Specialist (IIDS), 5 months 1 ADB s Individual Consultant Selection Nov Dec Portfolio/ODA Management Specialist (IPMS), 1 ADB s Individual Consultant Selection NovDec months National 3 Institutional Dev. Specialist/T. Leader (TL), 20 months 1 ADB s Individual Consultant Selection MayJun Portfolio Management Specialist (LPMS), 10 1 ADB s Individual Consultant Selection JulAug 2012 months 5 Economist (LE), 4 months 1 ADB s Individual Consultant Selection AugSep Capacity Building Specialist (LCBS), 1 month 1 ADB s Individual Consultant Selection JunJul

20 ATTACHMENT 4. PERSONNEL SCHEDULE International Name of Expert J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D 1. Institutional Dev. Specialist (5 months) 2. Portfolio Management Specialist (3 months) National 3. Team Leader/NIDS(20 months) 4. Portfolio Management Specialist (10 m) 5. Economist (4 months) 6. Capacity Building Specialist (1 month) 16

21 ATTACHMENT 5: UPDATED DESIGN AND MONITORING FRAMEWORK Design Summary Performance Target and Indicators Data Sources and Reporting Mechanism Impact: ODA disbursement ratio, currently 20%, Aid effectiveness forum reports Effective utilization of on par with international average by ODA resources by the 2018 Government statistics on the MPI Government website Startup time currently 8 months, on par with international average by 2018 Outcomes: Improved portfolio performance of ADBfinanced projects in Viet Nam. Outputs: 1. ODA harmonized Procedures Completion of ODA funded projects, currently 8 years, on par with international average 2018 Increased cumulative disbursement ratio from 20% to 30% by 2014 Reduced time elapsed: (i) Loan approval to effectiveness from 8 months (2010) to 6 months (2014) (ii) Loan approval to first contract from 16 months (2010) to 11 months (2014) Reduced loan extensions to 10% of ongoing portfolio by 2014 Refined procedures for PDO ready for inclusion into the Gov s proposed decree on ODA by Q2, 2012 AAs incorporated into Gov s decree/circular on ODA by Q The Blue Book updated by Q ADB quarterly country portfolio performance review COSO country portfolio review data and SERD Operations Dashboard COSO country portfolio review data and SERD Operations Dashboard New decree and circular on management and utilization of ODA Six Banks monthly meeting minutes Assumptions and Risks Assumption: Government support for framework to harmonize its procedures with ODA procedures Risk: Rapid changes in the development context in Viet Nam affect the expected impacts of ODA projects in Viet Nam Assumptions: More dedicated capacity building support to line agencies Proposals on harmonized procedures for project preparation an startup will be institutionalized in the Vietnamese legal framework for ODA management Assumption: GOV allocates sufficient financial and human resources for portfolio management; relevant and active participation of GOV officials in training programs Risk: Delays in the GOV adoption of new decree on ODA management 17

22 Design Summary Performance Target and Indicators Data Sources and Reporting Mechanism Assumptions and Risks 2. Achievement of Project startup compliance 3. Strengthening of Institutional mechanism for join portfolio management 4. Strengthening of capacity for ODA project management 5. Institutionalization and implementation of results of dialogues on ODA effectiveness AAs for projects to be approved from 2012 onward are implemented PMUs are able to monitor the AAs implementation 3.1 Recommendations from portfolio performance monitoring reviews adopted: One annual country portfolio review, four quarterly tripartite portfolio reviews conducted annually, one joint portfolio performance review with the Six Banks held every 2 years. Alignment of portfolio performance with the results framework specified in ADB s Strategy Demanddriven training programs on project management skills developed and implemented for 60% of ongoing projects including of genderdisaggregated indicators for training. Recommendations from ODA effectiveness forums, including CG meetings, adopted. Knowledge products developed and disseminated by Q Mission memorandum of understanding or aidememoire Country portfolio performance and mission reviews Approved PDO and FS by the Government and MPI ADB annual reports The Six Banks biannual joint portfolio performance review reports MPI s ODA management reports TA Implementation reports Training evaluation sheets Consultative Group proceedings 18

23 Activities: 1.1 Provisions relating to AA and PDO, among others, to be included in new Decree/ Circular on ODA. 1.2 The updated Blue Book 2.1 Prepare AA guideline 2.2 AAs for projects to be approved from 2012 onward are identified. 2.3 The implementation of AA projects is monitored. 2.4 PDO and FS for PPSSF project are prepared 3.1 Systematic quarterly portfolio performance review meetings on problematic projects are conducted. 3.2 Annual and midterm country portfolio review in 2012, 2013 and 2014 are conducted. 3.3 JPPR VII and JPPR VIII in Jun 2013, including monitoring status of JAP 2 implementation, focusing on AA are followed. 3.4 Targeted sector outputs results framework is consolidated and Update sector result framework monitoring matrix is updated. 3.5 The achievement of targeted sector outputs using result framework is monitored. 3.6 An Excel based database in MPI is developed and maintained. Inputs: ADB $ 800,000. Consulting services: 377,000 Equipment: 10,000 Training/workshops: 267,000 Miscellaneous Adm. 77,000 Contingency: 60,000 The Government will provide counterpart support in form of counterpart staff remuneration and office spaces. 4.1 Training and capacity building needs assessment is conducted. 4.2 Training program (training for EAs/IAs/PMUs staff) and training materials are prepared. 4.3 Quarterly trainings up to 2014 are conducted. 4.4 Evaluation of training program 5.1 Reports for consultative group meetings are prepared. 5.2 Post Busan Monitoring Framework is developed. 5.3 The survey on Aid Effectiveness is prepared. 19

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