Risk assessment is often carried out by considering a matrix of likelihood and consequential severity to define the level of risk (individually and overall) before and after the controls or mitigation strategies are in place. The PCR template should also allow for discussion on risk to explicitly consider whether the risk mitigation strategies had been successful. The PCR and PVR templates should also be reviewed to ensure consistency. At present, the PVR template Part II Section C shows Efficiency of resource use, while the PCR shows Efficiency of achieving outcomes and outputs.
The program grant, together with parallel, collaborative cofinancing from development partners, was a useful modality in that it directly provided immediate fiscal relief to Tuvalu and consequently contributed to the replenishment of the country’s fiscal buffer, the Consolidated Investment Fund. It also acted as a valuable leverage in expediting reforms. Benefits were enhanced by the adoption of a multiyear approach and the agreement among donor partners to combine their respective interests and work together in a single reform matrix.
The stand−alone TA for the strengthening Tuvalu’s Ministry of Finance and Economic Development was timely in that it both preceded the grant release and continued after the grant release, adding to the sustainability of the reform process. Similar TA is likely to be required if additional policy actions in public finance management are formulated. Such TA will also assist in making further progress with respect to strengthening public procurement and reorienting and restructuring Tuvalu’s Public Works Department.
The grant release conditions put forward by the program were realistic and effective in encouraging the government to implement several specific procurement, public enterprise, and fiscal management reforms sooner than might have occurred without the incentives created by the grant conditions. These, along with
the ongoing technical assistance (TA) for the institutional strengthening of the executing agency, made the program perform well in contributing to the overall impacts sought—good governance, macroeconomic growth, and improved fiscal stability.