PHILIPPINES: Implementation Progress, Portfolio Performance and Results

1. ASEM Financial Crisis Response Fund Review Meeting PHILIPPINES: Implementation Progress, Portfolio Performance and Results 28 June 2006 Presented by: Director Ma. Edita Z. Tan Department of Finance

2. PHILIPPINE CONTEXT Medium-Term Philippine Development Plan Assumes that: Improved governance is critical to poverty alleviation Priorities of the government: • Raising fiscal revenues to achieve fiscal consolidation • Improving expenditure management and public procurement • Managing fiscal risks pertaining to contingent liabilities • Strengthening and deepening the private sector • Rebuilding investor confidence through improvements in Corporate Governance

3. FOCAL AREAS OF THE ASEM TF 2 Financial Sector Social Sector Governance Reform • Pension Reform • Strengthening Capacity for Bank Supervision • Closing the Productivity Gap • Poverty Monitoring and Analysis • Strengthening Reforms in the Urban Shelter Programs for the Poor • Knowledge Enhancement of Key Issues in Corporate Governance • Strengthening Institutions for Sustainable Poverty Reduction and Good Governance • Strengthening the Capacity of Procurement Institutions for Sustainable Good Governance • Strengthening the Office of the Ombudsman for Good Governance

4. FOCAL AREAS OF THE ASEM TF 2 Relevant Figures: Total Grant Amount = US$ 5.22 Million No. of Programs = 9 No. of Projects = 12 Completed = 5 On-Going = 6 Cancelled = 1

5. PERFORMANCE OF COMPLETED ASEM TF PROJECTS

6. OUTCOMES OF COMPLETED PROJECTS • Closing the Productivity Gap (TF051862) • Workshops were held with key stakeholders to build consensus around recommended policy approaches to strengthen productivity growth • Knowledge Enhancement of Key Issues in Corporate Governance (TF050955) • A training program and manual on corporate governance was developed • Strengthening Capacity for Bank Supervision (TF053181) • Supported Central Bank’s efforts to align the IT and risk management policies with international best practices • Pension Reform (Recipient-Executed) (TF052349) • Provided a clearer perspective on the financial and actuarial position of the military pension system

7. STATUS OF ACTIVE ASEM TRUST FUNDS

8. DISBURSEMENT RATE (2004 TO 2006) • Despite a slow start, disbursement rate picked up in 2006 • Disbursed amount has now reached approx. 60% as of to date.

9. PROBLEMS ENCOUNTERED • Design Problems: • Overly complex project with multiple stakeholders • Fragmented/small consultancies • Solution: • Regular meetings with the ICSC helped improve coordination and address bottlenecks • Lumping together small assignments into one TA contract

10. PROBLEMS ENCOUNTERED (2) • Implementation Issues: • Difficulty in providing direct government counterpart funding requirement • Problems with external project monitoring unit • Solution: • DOF realigned its budget to accommodate the counterpart costs • Dedicated in-house staff reporting directly to the Undersecretary

11. MOVING FORWARD • Possible Areas of Cooperation (High Priority): • Economic and Financial Cooperation • Regional macro-economic monitoring • Regulatory economics • Social Cooperation • Social protection for the informal sector and other vulnerable groups • Environmental Cooperation • Energy efficiency

12. ASEM Financial Crisis Response Fund Review Meeting PHILIPPINES: Implementation Progress, Portfolio Performance and Results THANK YOU!