Review of CEPSIP2 and PSIP tools March 2016 PROJECT FOR CAPACITY ENHANCEMENT IN PUBLIC SECTOR INVESTMENT PROGRAMMING PHASE II (CEPSIP2)

1. Background of CEPSIP PSIP was introduced under PFM reform as a tool of development planning and budget management in order for the national budget and available resources to be allocated efficiently. The final product of PSIP is a list development projects with budget for the coming 5 years. JICA, through CEPSIP1 (July 2009-July 2011), assisted to establish PSIP process by setting up PSIP database, improvement of work procedure, and strengthening inter-ministerial coordination.

2. After CEPSIP1 Outstanding Issues concerning PSIP after CEPSIP1 (1) Appraisal of on-going projects Inadequate information of project performance Inadequate appraisal methods (2) Coordination with budget process Inadequate association between progress of on- going project and budget disbursement Inadequate coordination with Budget Division CEPSIP2 (March September 2016)

5 Two-Layer Project Management Individual Project Management (Implementing Agencies) National Project Management (PSIP)

3. CEPSIP2 Overall Goal The development project cycle will be efficient and effective. (Indicator) Projects due for completion but requiring an extension not more than 15 percent (every year) ⇒ FY PSIP 20 percent

4. CEPSIP2 Project Purpose PSIP is operated with increased efficiency and enhanced harmonisation within the public financial and economic management framework. (Indicators) 1. Increased amount and elevated quality of information(both on new projects and on-going projects) available for an appraisal by PSIP Section ⇒ Most of proposal templates were filled without errors (quantity) and with meaningful project information, after resubmission was done (quality) 2. Improved observance ratio of the deadlines of PSIP process by PSIP Section and Line Ministries ⇒ Target observance ratio is 90%. As for proposal submission, it was only 29% of votes submitted at least 1 proposal by deadline. As for ministerial meeting attendance, almost all MDAs attended on the proposed dates. 3. Improved evaluation on the PSIP efficiency by the stakeholders 4. The number of the votes that have no discrepancies between Budget and PSIP Database will increase from 5. ⇒ FY Budget vs PSIP Database ： 3 votes (info of Part 1 projects)

5. CEPSIP2 Outputs Output 1Improvement of PSIP Tools  IT tools PSIP Database ver.2 Proposal Templates Quarterly Progress Report Format Project Financial Management Information Tool (PFM-IT) *for activity-based project accounting  Non-IT tools PSIP Preparation Handbook PSIP Appraisal Manual (for internal use)  Technical Report 1 & 2 Output 2Harmonisation of PSIP process and planning and budgeting process of MDAs and BD Output 3Building Capacity to utilise PSIP Tools

6. Targeted Institutions (1) Implementing agency: PSIP Unit, Development Planning Division, MFEPD (2) Related agencies: Budget Division, MFEPD Planning Division + project cycle management team of MDAs (3) Also work with: M&E Division, MFEPD Debt and Aid Management Division, MFEPD Accountant General’s Dept. for IFMIS and project accounting Central Internal Audit Unit (CIAU) National Audit Office (NAO) Ex-officio members of Joint Coordination Committee: Economic Planning Division, MFEPD E-Government Dept. Performance Enforcement Dept.

7. PSIP IT Tools PSIP Database ver.2 NEW! ⇒ It will be presented in the coming sessions. There will be a practical session about Database ver.2, so if you are not registered as a user, please fill in the user registration form and submit to our staff. Proposal Templates for FY PSIP Quarterly Progress Report Format for FY ⇒ They will be briefly presented in the later session. We would like to get your feedback on them. Project Financial Management Information Tool (PFM-IT) *for activity-based project accounting ⇒ It will not be presented today, but it is downloadable from PSIP Portal. If you need help in using it, CEPSIP2 team will assist you, please us or give us a call.

8. PSIP Non-IT Tool: PSIP Preparation Handbook (Oct. 2014) Chapter 1: Introduction – Reconfirm the role of PSIP Chapter 2: Objective and Scope – Reconfirm the coverage and definition of PSIP – PSIP Eligibility Chapter 3: PSIP Project Proposal Formulation – Focus more on MDAs’ action; PSIP Process Working Calendar – Describe how to prepare for submission of new and ongoing projects – Necessary documents to accompany proposal templates – Share appraisal criteria with MDAs Chapter 4: Institutional Roles in PSIP Formulation – Institutions related to PSIP revisited and their roles defined Supporting manual: PSIP Template Manual ⇒ It is downloadable from PSIP Portal. ⇒ Guidelines and proposal templates used for FY PSIP preparation will be incorporated in the final version, which is being developed.

PSIP Preparation Handbook final version The final version is planned to reflect the changes made and lessons learnt from FY PSIP preparation process, such as: i.PSIP unit directly guides a person in charge of project proposal formulation at MDA. ii.After proposal submission, PSIP conducts 1 st appraisal before ministerial meetings. This includes to assess the proposal itself, whether it contains appraisable information or not. iii.Site validation is conducted for selected projects. iv.Main presenter at ministerial meeting is PSIP Unit, with BD and M&E a.Confirmation of submitted proposals and priorities b.Compliance to submission dateline c.Summary of appraisal notes (enquiry points) v.Final appraisal with adequate information (priority, preparedness, progress, compliance to PSIP and project plan, and break-down of requested amount with planned activities) vi.Feedback of final appraisal results to MDAs - underway

9. PSIP Non-IT Tool: PSIP Appraisal Manual (Oct. 2014) Chapter 1: Introduction Purpose and users of manual Chapter 2: PSIP Working Calendar Chapter 3: Purposes of Appraisal and Information for Appraisal Purposes of Proposal assessment Review of the previous PSIP Requesting appraisal information - PSIP Circular No. 1 Management of Information for Appraisal and PSIP Database Chapter 4: Method of Appraisal Appraisal of new projects Appraisal of ongoing projects Chapter 5: Appraisal Reports Project appraisal Matrix Appraisal Note Ministerial meeting report Revised Project Appraisal Matrix ⇒ Brief Appraisal Criteria is attached to PSIP Preparation Handbook and Circular 1. ⇒ Changes made during FY PSIP preparation process will be incorporated in the final version, which is being developed.

10. CEPSIP2 Evaluation 1. Mid-Term Review (Feb. 2015) Strengthen PSIP compliance by MDAs Strengthen process harmonisation Strengthen project costing, accounting, and monitoring 2. Terminal Evaluation (April 2016) Please fill in the questionnaire and submit it to the Reception before you leave this venue today.