• Reference: P-GM-K00-007
• Approval date: 21/11/2007
• Start date: 02/06/2008
• Appraisal Date: 09/05/2007
• Status: OngoingOnGo
• Implementing Agency: GOVERNMENT OF GAMBIA MINISTRY OF FINANCE AND TRADE
• Location: BANJUL

The components of the project are the following:

A.Strengthening Macroeconomic Management; B.Strengthening Financial Management and Accountability C.Improving Debt Management. D.Establishing a Project Coordination Unit (PCU)

The project objective is to contribute to strengthening capacities in key public institutions engaged in economic management and governance, with a view to poverty reduction. The targeted general areas of improvement are the following:

(i) strengthening macroeconomic management;

(ii) improving financial and fiscal accountability; and

(iii) improving the debt management process. The strategy for strengthening capacities in the economic management and governance sectors include a combination of:

(i) development of human resources;

(ii) provision of technical assistance; and

(iii) installing a local area network in selected institutions. To implement the above the project also involves the establishment of Project Coordination Unit.

The rationale for this project is grounded in the fact that the process of economic management and governance is beset by institutional problems, involving shortages in skilled and trained manpower, the need for legislation to up-date the legal framework of certain key institutions, such as the auditor general and the need to redefine some of the objectives and terms of reference of some institutions, so as to eliminate the overlap in aid coordination. Most of these weaknesses have been identified in the country's PRSP II (2007-2011) and the Government has already initiated measures to ease these constraints. The proposed ADF intervention through this project will support key institutions involved in economic management and fiscal and financial governance, such as DOSFEA, the National Audit Office, SPACO, GBOS, and the National Assembly. The ADF proposed project will assist the Government in attaining the benchmarks of its PRGF program (2007-2009) and attain the PRSP II and the MDG targets.

The support provided is through the following:

(i) human resources development through short-term and long-term local and external training;

(ii) technical assistance services in macroeconomic management, budgeting/fiscal management, and foreign debt management;

(iii) information technology communication;

(iv) short-term studies. Human resources development represents a key input: emphasis will be on short-term training within the region, ranging between one to 4 weeks in financial management, project management, aid coordination, debt analysis and debt sustainability, auditing and field visits to best practice countries in poverty alleviation cross-cutting issues. Relevant staff in both DOSFEA and the central bank will be exposed to the application of a macroeconomic model for the Gambia in a local workshop. The macroeconomist adviser, who is financed through this project, will develop the model and will provide the required training. To fill the gap in middle management in macroeconomics, two Masters Degree in macroeconomic policy analysis and macroeconomic modelling and forecasting are provided for. In support of financial governance a specially designed workshop will be organized for members of the National Assembly and field visits to development projects, including those financed by the ADB Group, will also be provided to members of the National Assembly.

The provision of three-30 months technical assistance team will assist the Government in meeting its commitments to implement the policy and institutional reforms under the PRGF and PRSP II programs. The TA team will provide expert advice in critical areas pertaining to the preparation of the budget, the Mid-term Expenditure Framework (MTEF) and macroeconomic modelling. The project will also facilitate the decision making process in economic management and financial governance through the installation of a local area network in DOSFEA, NAO, and SPACO. The two short term studies will be instrumental in improving the economic management process through revising the Producers Cost Indices and removing the institutional overlap in aid coordination.

The proposed project has been pre-appraised in November 2006. An ADB multi-disciplinary mission appraised the project in April 2007. In appraising the project the principles of selectivity, complementarity and synergy were observed. The mission held several consultations with the secretary of state (minister) for DOSFEA and with the permanent secretaries and heads of directorates in public institutions involved in the process of economic management and governance. Discussions were also held in Banjul with representatives of key development partners, namely the World Bank, UNDP, the EU, and DFID. During these visits the Bank staff explained in detail its planned intervention and sought guidance on potential areas of intervention, so as to avoid duplication and take advantage of potential areas of synergy. The mission was assured that the proposed intervention does not pose any duplication and that the Fund's inputs would complement efforts already underway to improve macroeconomic management and governance.

i. Improved economic management through the creation and use of macroeconomic models for forecasting, and through the training of senior and middle class cadres in macroeconomic policy analysis and in the use of macroeconomic modelling for forecasting of macroeconomic parameters; ii. Improved financial and fiscal management through the refinement and dissemination of manuals in the use of advanced tools for budget and MTEF preparation and the dissemination of tools for revenue and expenditure forecasting. Improved financial and fiscal management is also anticipated through trained personnel in financial and fiscal policy analysis. iii. Improved economic, financial and fiscal management through the installation of local area networks in DOSFEA, NAO and SPACO. iv.Reduction in the high level of domestic indebtedness and improved overall macroeconomic performance, as a result of improved economic, financial and fiscal management. v.Improved public accounting and auditing through the procurement and installation of local area networks in each of DOSFEA, GBOS and NAO and through training in the use of the network. vi.Improved accountability and transparency of public sector financial management through improved debate in the National Assembly. vii.Improved quality of statistics through the review and up-dating of the existing system of Producers' Price Indices. viii.Improving the process of aid coordination through streamlining the existing duplication in the process. ix.Improved project implementation through the establishment of a PCU.

DO Cam - OSGE1

Finance source	Amount
ADF	UAC 1,400,000
Government	UAC 73,000
Total	UAC 1,473,000