How do donors go about improving aid effectiveness in practice? The inception report “Socialist Republic of Viet Nam: Support to Improve Portfolio Performance and Aid Effectiveness” gives an insight into how the Asian Development Bank’s (ADB) thinks it should do it. At the end of the report there is a useful Design and Monitoring Framework (p. 17-19).
The ADB has identified the main constraints that need to be solved for improvement of portfolio and aid effectiveness in Viet Nam, including:
- lack of harmonized procedures on ODA project management
- project start-up delays
- limited effectiveness of joint portfolio performance management mechanism
- project management capacity constraints, and
- delays in institutionalization of results of dialogue between Government and development partners on aid effectiveness
ADB carried out a first technical assistance (TA) project to enhance ODA absorptive capacity and efficiency from October 2007 to August 2011. A new TA project will address the above-mentioned constraints and further institutionalize the outcomes of the policy dialogue between Government and the Six Development Banks Group (6BG) as agreed in the second Joint Action Plan (JAP-2). The 6BG brings together the ADB, the World Bank, JICA (Japan), Korea Eximbank (Korea), KfW (Germany) and AFD (France).