From this ADB TA, Government of Lao PDR would significantly benefit from capacity building regarding aid effectiveness, so as to better ensure that the Vientiane Declaration and Country Action Plan (CAP) for implementing the Paris Declaration principles was fulfilled. Official Development Assistance accounted for some 50 percent of the public investment budget in Lao PDR, and off-budget ODA was also substantial, posing major challenges for domestic programming, cash management to meet recurrent expenditures, and overall efficient use of limited resources. Development partner activity was widely dispersed across many sectors and thematic areas, requiring extensive aid management and coordination mechanisms. It was critical that the UNDP/Lao PDR aid-effectiveness framework be strengthened. The ADB TA was designed to address specific requirements in this regard.
TA team assisted the Government to further develop its capacity in improving aid effectiveness in collaboration with the Round Table Process (RTP). The TA delivered the following outputs:
- A strengthened RTP coordination process, including improved baseline data, diagnostic analysis, and monitoring reports.
- Common development partner arrangements, simplified procedures and collaboration in preparing core economic and analytic studies.
- Enhanced capacity of the Department of International Cooperation (DIC), including units at the provincial level and increased local authority.
- A strengthened capacity of the infrastructure and macroeconomics/private sector. Sector Working Groups (SWGs) and line ministries to coordinate policy and program approaches, and to improve inter-sectoral synergies.
- Better understanding of the interrelationship between program budgeting and aid effectiveness.
Timeframe: June, 2009 - June, 2011
Realated Countries: Laos
Categories: Public Administration and Governance, Capacity Building and Management Reform and Human Resources Management, Public Administration and Governance