InTouch 6 (3)

A Newsletter of the World Bank C o u n t r y O ff i c e M a n i I a March -June 2001 Volume 6 Number 3 'Better Future for the Youth' Government,WB Launch Partnership for Out-of-School Youth Filipino out-of-school youth deserve it T a better future. Giving them opportunities to go back to school AL and to become self-reliant and productive members of society will help secure that future. This is the goal of the Partnership for 4!X Philippine Out-of-School Youth, which was launched recently by the Philippine Government, the Children and Youth Foundation, and the Ayala Corporation with the support of the Helping the Youth. Vinay Bhargava, WB Country Director for the Philippines, w,elcomes President Gloria World Bank. Macapagol Arroyo, the guest of honor during the launch of the Partnership for Out-of-School Youth, Looking on are Patty Lyons, Chairman-President of Children and Youth Foundation of the Philippines, and Social Welfare and Development Secretary Corazon Solimon. Grants from Japan Social Fund and ASEM Trust Fund grants are administered by the World entrepreneurial activities through Bank. Mr. Bhargava and Philippine various forms of technical assistance World Bank Country Director Vinay Government representatives thanked under the OSCY Project. Bhargava said the Government of the Government of Japan and Japan and the World Bank had members of the ASEM Trust Fund She emphasized that the fate of the approved a grant of $1 million for the for their contributions. country depends on the education of Out-of-School Children and Youth young Filipinos. "We cannot achieve Project (OSCY), which will be President Gloria Macapagal Arroyo, lasting and sustainable progress if we implemented until 2003. the guest of honor at the signing of leave out all of those millions of out- the grant agreement of the Japan Social of-school youth from the fruits of This new grant follows an earlier $1 Development Fund, said her development." million grant from Asia-Europe administration would give the youth (- 7 Meeting (ASEM) Trust Fund. Both access to education, employment and * GOP ODA Agencies Adopt Measures to Improve On the Frontline:Touching the Lives of Filipinos pp4-5 In This Issu Project Performance p2 Capacity BuildingWorkshops for NGO's p7 ssu .. AAJ ~ Government Economic Managers, Donors Gear Up WB Publications p8 to Fight Poverty p3  The Government of the Philippines (GOP) and three Official Development GOP. ODA Agencies Adopt Assistance (ODA) funding agencies- Asian Development Bank (ADB), Japan I rove Bank for International Cooperation Measures to Imp (JBIC), and World Bank (WB)- recently held the first joint ODA Project Performance portfolio review under the Arroyo administration. The meeting, aimed at improving the implementation of ODA-funded projects in the Philippines, was attended by officials of Philippine government agencies, representatives from the three ODA funding agencies, and the Japanese Embassy. The country's current ODA loan portfolio consists of 184 active loans Tough Job Ahead.Government and WB officials discuss ways on how to improve the per, ormance of the Philippries' with net commitments of US$12.5 foreign assisted projects. billion. Of these loans, 178 are project- type worth US$11.2 billion while six Budget and Management Secretary out the need for the government to take are program-type worth US$1.3 billion. Emilia Boncodin said that with the a more proactive role in ODA portfolio Ensuring large, positive ballooning fiscal deficit, the government management. benefits to society had to operate on a reenacted budget ADB Country Director for the and focus on results and outputs within Philippines Gunter Hecker said the Socioeconomic Planning Secretary available resources. Dante . Ca.s h hie h government's implementing and meeting, sailts, revire d mae "Some realignments and reallocation oversight agencies should take a more ,netg sad the review would make suretng thatlthe ODA-funded prograwill have to be done to accommodate proactive and facilitative stance to ensure adroectsa the governmen yield priority activities and projects. This that projects are done and benefits are and projects . thegovernmentymeans that some activities will have to realized without delay. large and positive benefits to society be deferred," she said. The government despite the obstacles accumulated over 'Fcsgo on otol was committed to allocate at least P60 Focusing on sound portfolio the past two years. . . . . management, Hecker said these agencies billion for foreign-assisted-projects in should have greater accountability, "The new administration is eager to 2002. ownership, and commitment to the demonstrate its capacity to dismantle "The basic framework for foreign- projects' successful implementation. the obstacles that beset the respective a pt programs of the three ODA funding siste iprove the mediu- term Counsellor Takashi Hoshiyama of the agencies," he said. is to improve the utlization of budget Embassy of Japan stressed the appropriation to at least 80 percent," importance of making appropriate Finance Secretary Alberto Romulo said Boncodin said. development and investment allocations the government has embarked on a Need for government to to reduce the budget deficit and ensure comprehensive assessment of foreign- take proactive role effective development in the Philippines. assisted projects that will minimize unnecessary cost and waste arising from For their part, ODA funding agencies The JBIC Senior Representative Yasuo poor design. "For new projects, the commended the Philippines for the Fujita informed the group that the government is instituting a screening initiatives done by the Arroyo Philippines had recorded the highest process to ensure that project quality at administration in improving its ODA disbursement rate of Y65.8 billion in entry is achieved," he added. portfolio performance. Still they pointed (0- 3 2  WBNews its 20-year history of availing of Japanese "This is indeed a 'best practice' in * Joint ICC and DBCC will be the ODA during the Japanese fiscal year partnering for development effectiveness oversight body for ODA. 2000 (April 2000-March 2001). "We and should be scaled up beyond portfolio * Loan proceeds will be used for see this as a good achievement but there reviews to the programming exercise," capacity building. is still room for further improvement," he noted. * Civil society's participation in ODA he said. results monitoring will be He added that the new administration expanded. Unique ODA review has ushered in a more vigorous and * ICC will review the operations of rigorous Investment Coordination the M ipl Devieopmern of The World Bank underscored the Committee (ICC) and Development tOe oufictpal Development Func uniqueness of the Philippines in terms Budget Coordination Committee of the government initiating regular (DBCC). Of the country's 184 active loans, JBIC joint review meetings to improve has the lions share with 87 loans worth portfolio performance. "We are confident that the apparent US$7.2 billion, comprising 58 percent According to WB Principal Operations trength of the GOP's commitment to of net commitments. ADB has loans According,to WB Principal Operations resolve the long-standing ODA worth US$2.9 billion (23 percent), Officer Aloysius Ordu, the GOP-led problems in a business-like manner will World Bank has 26 loans worth US$1.8 partnership with ADB-JBIC-WB aimed soon bring about good results," Ordu billion (14 percent), and other bilateral at resolving ODA problems, is unique said. to the Philippines in the East Asia region "since no other country in the region Other agreements reached by the GOP US$628 million (5 percent). has successfully done it in a systematic and the ODA funding agencies to way." improve portfolio performance were: Gov't Economic Managers, Donors Gear Up to Fight Poverty 4 IIIIIIIllf '. the war against poverty within the -sS - > --- ---v _ Yl =ffi decade," he said. Speaking on behalf of the donor