| Project Detail |
The technical assistance will strengthen public procurement and state audit functions of the Government of the Lao Peoples Democratic Republic (Lao PDR), contributing to stronger accountability mechanisms for more effective and transparent delivery of government investment program and use of public funds. Strengthened accountability mechanisms will in turn contribute to enhanced reliance on country systems, and the efficient and effective implementation of ADB-funded projects. Project Name Lao Peoples Democratic Republic: Strengthening Public Procurement and Financial Management Capacity Project Number 57201-001 Country / Economy Lao Peoples Democratic Republic Project Status Approved Project Type / Modality of Assistance Technical Assistance The technical assistance is aligned with the (i) Vision to 2030 and Public Finance Development Strategy to 2025 of the Lao PDR; (ii) Lao PDR 9th National Socio-Economic Development Plan (2021-2025); and (iii) ADBs Strategy 2030 Operational Priority 6 - Strengthening Governance and Institutional Capacity. Its objectives complement other ADB TA support and ongoing ADB Public Financial Management (PFM) strengthening activities. In 2023, the International Monetary Fund assessed the Lao PDR to be in external and overall debt distress with unsustainable debt due in part to weaknesses in public institutions and economic governance and reiterated the need to implement reform plans and improve PFM. Central to strong PFM are sound and transparent procurement practices and effective PFM oversight. Both procurement and audit are recognized as having weaknesses and are government priority areas for support. ADBs technical assistance will seek to address these issues through two outputs. Under the first output, the technical assistance will (i) provide relevant Ministry of Finance staff the tools and training needed to monitor compliance with the Procurement Law and support regulatory reforms and capacity building in key areas such as centralized procurement, promotion of small and medium sized enterprises, complaint handling and environmentally sustainable procurement; (ii) deliver tailored capacity building support to key procuring agencies including through organization of clinics on demand to tackle specific procurement or contract management issues that may arise from time to time during implementation of government and ADB-financed projects or as agreed during ADBs quarterly and annual portfolio review missions; (iii) organize outreach to the private sector to disseminate information regarding business opportunities and strengthen its capacity to prepare high quality bids; and (iv) support professionalization of the procurement function including through design and delivery of procurement course to be offered by Ministry of Finances Academy of Finance and Accounting. Under the second output, the technical assistance will (i) upgrade and develop audit and quality assurance manuals, guidelines, working paper templates, and training materials, and build the capacity of State Audit Organization (SAO) staff through the delivery of training and organization of knowledge exchange and fellowship programs with other State Audit Institutions, (ii) develop the Audit Research and Training Institute staff capacity, e-Library, and e-Learning courses, (iii) create SAO career progression guidelines, (iv) procure computers and develop audit tools and/or systems to help audit planning and execution, and (v) support the preparation of SAO Strategy 2026-2030. These activities are aligned with SAOs Development Strategy 2021-2025 aimed at strengthening SAO capacity to audit Lao PDR public funds and will contribute to strategy 6 of the Lao Public Finance Development Strategy 2025 aimed at enhancing the quality and reliability of public financial reporting and auditing. Impact Accountability and transparency in use of public funds enhanced. |
