1. GOVERNANCE RISKS IN PUBLIC FINANCIAL MANAGEMENT AND PROCUREMENT CASE OF THE PHILIPPINES NATIONAL ROADS IMPROVEMENT AND MANAGEMENT PROGRAM (NRIMP), FIDUCIARY FRAMEWORK, LESSONS LEARNED AND CHALLENGES AHEAD Behdad Nowroozi MNA FM December 1 2010

2.  Capacity building efforts and strengthening country systems  Transcending beyond the project and focusing on the entire sector  Increased transparency  Ongoing monitoring and oversight  Third party monitoring  Integrated approach Sound Fiduciary Framework: Principles 2

3. Improved operation, organizational effectiveness and fiduciary control in the management and financing of the national road system, to enhance road user satisfaction in the project areas and efficiency and integrity in the use of financial resources NRIMPII Development Objectives 3

4.  Strengthening DPWH systems  Supporting implementation of a computerized financial management system  Strengthening internal control framework, including internal audit, monitoring and oversight  Increasing competition and participation  Encouraging whistle blowing  Using civil society organizations as external monitoring agent  Strengthening integrity of disbursement  Enhancing integrity of project supervision NRIMPII Anti-Corruption Strategy Built on a Robust Fiduciary Framework 4

5. NRIMPII project was challenging at the design stage, but is much more challenging in its implementation Conclusion 5

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