The DFID has agreed to provide parallel and tied co-financing through a Technical Assistance (TA) grant of 3-5 million pounds to complement the TA loan project under Punjab Resource Management Programme (PRMP). According to official sources, DFID assistance will support Punjab Government to implement and deepen reforms under PRMP.
DFID will provide support in the areas of (i) fiscal and financial management, (ii) poverty-focused planning and monitoring systems, (iii) international technical advice for civil service reforms and will assist, (iv) to foster the enabling environment for private sector development.
ADB TA resources will therefore be used to assist the executing agency for PRMP implementation and for capacity development, while DFID TA resources will fund short- and long-term international expertise for implementation of the areas noted above.
Meanwhile, DFID conducted targeted studies on civil service reforms, restructuring of the Bureau of Statistics and Punjab Economic Research Institute and scope of the private sector interventions in light of the Punjab Economic Report.
Based on that the design document was ready and was likely to get final approval in present month. Punjab Government had requested for some urgent inputs which were likely to start in September. An independent management firm will be appointed to implement DFID's assistance to PRMP.
Some of the studies sponsored by DFID were directly related to 2nd tranche requirements therefore close co-ordination with the PRMP Program Management Unit was crucial. During Inception ADB agreed with Punjab Government that the Executive Committee of the PRMP Steering Committee had to ensure that any studies or assistance having a bearing on tranche release conditions under Subprogram 2 of PRMP (2216-PAK) shall be co-ordinated in a manner that result in timely compliance of the tranche release conditions.
In addition, capacity of the Planning and Development Board will be strengthened to ensure co-ordination of the PRMP TA along with the other key programs like Punjab Devolved Social Services Program.
According to official sources, the purpose of the technical assistance (TA) grant (TA4520) was to provide advice for the implementation of Subprogram-2 and for further broad-based policy reforms through the preparation of Subprogram-3. Policy reforms under the PRMP were divided into the three areas: (i) fiscal and financial management, (ii) processes and institutions for pro-poor service delivery, and (iii) private sector development.
PRMP will achieve its purpose when policy reforms result in public resource management that was efficient, cost-effective, transparent, and accountable and leads to higher equity and sustainability.
THE TA HAS FOUR COMPONENTS:
1.FISCAL AND FINANCIAL MANAGEMENT:
A key responsibility of the PMU was to provide timely advice to the implementing departments and to co-ordinate support for implementation targets. Experts will be engaged to facilitate (i) revenue and expenditure management, (ii) restructuring of public debt and provincial liabilities, (iii) analysis of inefficient subsidies and options for phasing them out, (iv) improved accountability and financial management systems and (v) a review of reforms for public procurement systems.
2. CIVIL SERVICE REFORM:
To sustain the ongoing reforms, Punjab Government will reform its human resource management. This component will support the Punjab Government to review and assess various options on restructuring the provincial civil service; to assist in the preparation of a human resources policy; to provide technical peer review for amendments to the legislation and rules of the provincial public service commission; and to design a medium-term departmental restructuring plan.
In addition, this component will help the change management unit to circulate viable options for civil service reforms.
3. PRIVATE SECTOR DEVELOPMENT:
A key focus of Subprogram-2 was to facilitate province-wide reforms for private sector activities, forging public-private partnerships and reducing Punjab Government's direct involvement in commercial activities. Under this component, TA will be provided to (i) draft laws, regulations and rules required to effect changes in the legal regime that impedes private sector growth in Punjab; (ii) prepare templates for public-private partnerships; (iii) design provincial and local government innovations in business processes to encourage the inclusion of private sector in service delivery; (iv) help the provincial and local governments to privatise and outsource agriculture-related functions and (v) prepare options for privatising public sector organisations.
4. REFORM MANAGEMENT AND POLICY DIALOGUE:
The second phase of the PRMP will require the Government to mobilise technical and administrative expertise to consolidate the achievements under Subprogram-1 and to design demand-driven investments under the TA loan. Consulting inputs under this component will assist the PMU to review the work plans of departments, and advise on contracting procedures to carry out interventions under the TA loan.
Assistance will be provided to the PMU, the Finance Department and the P&DD to (i) manage the work plan for the TA loan in line with the policy commitments of subprogram 2; (ii) develop capacities of key officials and players in the reform process; (iii) help the PMU to institute a performance monitoring and evaluation system for the reforms; (iv) provide civil society, and Punjab Government's partner organisations with strategic information and conduct policy dialogue and (v) publicise progress on reforms through electronic and print media and professional and public exchanges.
The TA emphasises on extensive stakeholder participation (Punjab Government, civil society groups, politicians from the provincial and local government levels, private sector, and the media) to develop subprogram-3, and, based on continuous policy dialogue, to implement and further improve the reform agenda.