Status of Compliance
Covenant Reference in Loan Agreement Completion Evaluation LA Schedule 3,
paragraph 1 The Borrower shall cause the proceeds of the Loan to be applied to the financing of expenditures for the Program in accordance with the provisions of this Loan Agreement.
Satisfactory. Satisfactory, but no longer applicable
regarding the second tranche.
LA Schedule 4, paragraph 1
(a) The Borrower shall cause the Program to be carried out with due diligence and efficiency and in conformity with sound administrative, financial, engineering, environmental, and public sector practices.
Satisfactory. Satisfactory.
(b) In the carrying out of the Program, the Borrower shall perform, or cause to be performed, all obligations set forth in Schedule 5 to this Loan Agreement.
See below,
Schedule 5. See below, Schedule 5.
LA Schedule 4,
paragraph 2 The Borrower shall make available, promptly as needed, the funds, facilities, services and other resources which are required, in addition to the proceeds of the Loan, for the carrying out of the Program.
Partially
The Borrower shall ensure that the activities of its departments and agencies with respect to the carrying out of the Program are conducted and coordinated in accordance with sound administrative policies and procedures.
Satisfactory. Satisfactory.
LA Schedule 4,
paragraph 4 (a) The Borrower shall maintain, or cause to be
maintained, records and documents adequate to identify the Eligible Items financed out of the proceeds of the Loan and to indicate the progress of the Program.
Satisfactory. Satisfactory, but no longer applicable
The Borrower shall (a) ensure that the policies adopted and actions taken as described in the Policy Letter continue in effect for the duration of the program period, and (b) promptly adopt and carry out, or cause to be carried out, the other policies and actions set out in the Policy Letter and ensure that such policies and actions continue in effect for the duration of the Program period and subsequently unless otherwise agreed with ADB.
Partially Policy Letter led to ADB refusing to
The Borrower shall ensure timely and effective implementation of: (a) the items and conditions of the Borrower’s Medium Term public Sector Reform Plan; (b) the recommendations of the Functional and Expenditure Reviews for the relevant departments and agencies endorsed by CACC, including detailed subsequent review of the interrelationship among the central
agencies; and (c) the process of improvement of delivery of basic public services. In particular, the Borrower shall inform ADB of measures taken to strengthen the institutional capacity of the Auditor General’s Office, the Ombudsman Commission and the Department of Justice and Attorney General. to be abolished by legislation to be introduced in July 2008
Status of Compliance
Covenant Reference in Loan Agreement Completion Evaluation LA Schedule
5, paragraph 3
DOT shall be responsible for the execution of the program. PMNEC shall supervise implementation of the Program and the PSRMU shall be responsible for carrying out day-to-day implementation matters under the Program. CACC shall be responsible for overseeing and coordinating overall program implementation with departments and agencies concerned, including DPM, DOF, DOT and DNPM. The Borrower shall continue to maintain a Secretariat to support CACC activities and shall provide such Secretariat with necessary staff and resources, acceptable to ADB, throughout the period of Program implementation.
Satisfactory. DoT continues to allocate budget
Use of Counterpart Funds
The Borrower shall ensure that sufficient Counterpart Funds are made available to meet the costs associated with the implementation of the Program. Without limiting the generality of the foregoing, the Borrower shall ensure that Counterpart Funds shall be used, unless otherwise agreed with the ADB, to support inter alia:
(a) staff retrenchment, re-training and repatriation;
(b) privatization activities and regulatory and competition policy reviews;
(c) development and implementation of SIPs, functional and expenditure reviews, and costs of PSRMU and CACC Secretariat;
(d) human resource management and payroll system implementation;
(e) other structural adjustment expenditures (eg.
awareness campaign, developing policy monitoring mechanisms, superannuation task force, employee relations consultancy, Integrity Act implementation, closure of overseas missions, forestry revenue regime review).
Except as ADB may otherwise agree, (a) no initial expenditure of Counterpart Funds for any specific category of activity shall be made until ADB has approved a schedule of disbursement submitted by the Borrower for each such category of activity; (b)
Counterpart Funds shall be utilized not later than 31 December 2003 to meet the expenditures to be incurred pursuant to the terms of this paragraph. In the event the Borrower proposes to engage consultants for purposes of the Program financed through the use of Counterpart Funds, the Borrower shall obtain the concurrence of ADB with respect to the terms of reference and the competency and experience of such proposed consultants prior to engagement thereof.
Counterpart from the first tranche were provided although there were complaints as to the timeliness of fund
Any Counterpart Funds not required for the Program shall be used, in such proportions as the Borrower and ADB shall agree, to finance the local currency costs of projects financed by ADB, expenditures for the general development purposes and to reduce the accounts
Satisfactory. This covenant only applied for the first tranche
Status of Compliance
Covenant Reference in Loan Agreement Completion Evaluation payable and domestic debt of the Borrower.
LA Schedule 5,
paragraph 6 The Borrower shall provide updates, as part of the quarterly reports provided under the Program, detailing the extent of application of Counterpart Funds for Program activities, particularly for those activities specified in paragraph 4 above.
Satisfactory. After early 2003 Borrower updates
The Borrower, ADB and representatives of other major donors for Program related activities shall formally meet at least semi-annually to review Program
implementation. Prior to 30 September 2002, or such other date as the Borrower and ADB may agree, a joint review shall be carried out concerning the Borrower’s progress in implementing the policy reforms set out in the Policy Letter, including, in particular, the fulfillment of second tranche loan fund release conditions. To facilitate such review, the Borrower shall provide ADB with relevant information in such detail as ADB shall reasonably request. This review shall be the basis for discussion between ADB and the Government on (i) further measures that may be considered necessary or desirable to promote continued reforms; and (ii) release of second tranche.
paragraph 8 Policy Dialogue
The Borrower shall keep ADB informed of, and from time to time exchange views on, the progress made in carrying out the Program. To this end, the Borrower shall continue timely policy dialogue with ADB on problems and constraints encountered during implementation of the Program and on desirable changes to overcome or mitigate such problems and constraints.
paragraph 9 The Borrower shall keep ADB informed of policy discussions concerning the Program undertaken with other international and bilateral agencies and shall provide ADB with the opportunity to comment on any resulting policy proposals.
ADB = Asian Development Bank, CACC = Central Agencies Coordinating Committee, DNPM = Department of National Planning and Monitoring, DOF = Department of Finance, DOT = Department of Treasury, DPM = Department of Personnel Management, LA = Loan Agreement, PMNEC = Department of the Prime Minister and National Executive Council, PSRMU = Public Sector Reform Management Unit, SIP = service improvement program.
Source: Operations Evaluation Department.
STATUS OF SECOND TRANCHE RELEASE CONDITIONS AS RECORDED IN