Fiduciary and Procurement Risk Assessment of RWSS NTP III

[18 Dec. 2013] - Economica Vietnam experts have been commissioned by TPBS (Target Program Budget Support) donors to join international experts to carry out a fiduciary risk of the TPBS-NTP3.  The National Target Program for Rural Water Supply and Sanitation (NTP - RWSS) was first established in 2000 in recognition that widespread lack of access to these basic services compromises economic development and poverty reduction. A second phase, often referred to as NTP2, ran from 2006 to 2010.


The Government of Vietnam designed a third phase of the NTP - RWSS (NTP3) for the period 2011-15 which has been approved by the National Assembly. The development of NTP3 has been based on the findings of a thorough sector review in 2010, annual reviews of the program by donors and Government, technical and financial audits, a strategic environmental assessment (conducted by the WB in 2010) as well as a number of special studies on subjects such as operation and maintenance, water quality and the provision of credit.  The NTP have benefited significantly from support from TPBS  donors (AusAID, DANIDA and DFID).


TPBS-NTP2 represented a fundamental shift in aid modalities for the donors in Vietnam.  The shift to a reliance on GoV financial systems makes it particularly important for donor agencies to fully understand the fiduciary risks that implies for their funds; that is, the extent to which NTP funds are used for their intended purpose, properly accounted for, and represent value for money. As a result, the Fiduciary Risk Baseline Study for the Rural Water and Sanitation Sector was first carried out in 2006 and since then annual updates of the FRA and management actions has been undertaken. Safeguard measures have been developed and agreed with GoV for implementation and the annual updates confirmed the positive progress with implementing the safeguard measures.


In this context, Economica Vietnam experts have been commissioned by TPBS donors to join international experts to carry out a fiduciary risk of the TPBS-NTP3.  The team undertake an update key sources of sector-specific fiduciary risk, implement an overall fiduciary risk assessment of NTP3 and provide  detailed recommendations for any necessary additional fiduciary risk mitigation measures to be put in place. In addition to that, the experts are charged with working out a detailed work programme by which the fiduciary risks would be monitored, specifying inputs required, appropriate timing etc  and with improving the capacity of Vietnamese individuals and institutions to conduct fiduciary risk assessments and design appropriate mitigating measures. 


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