#1Rerevaka na Kalou ka doka na 7 Tui K T Rerevaka na Kalou ka doka na Tui THE FIJIAN GOVERNMENT FIJI National Infrastructure Investment Plan and New PSIP Guidelines Mr. Kamal Krishnan Gounder Head of Strategic Planning 06 June 2023 Ministry of Finance, Strategic Planning, National Development & Statistics#2Outline National Planning Documents Guidelines for Preparation, Appraisal and Approval of Projects Under the Public Sector Investment Programme (PSIP) ● Key Changes to Processes. - Adoption of the New ● Guidelines NIIP - Planning Framework and Process Enhancements Processes Improvement Opportunities - Identified by NIIP Mainstreaming NIIP to Enhance the Public Sector Investment Processes ● Conclusion#3National Planning Documents KNXKX A Green Growth Framework For Fiji Restoring the Balance in Development that is Sustainable for Our Future Ministry of Strategic Planning, National Development and Statistics August 2014 5-Year & 20-Year NATIONAL DEVELOPMENT PLAN Transforming Fiji MINISTRY OF ECONOMY I REPUBLIC OF FIJI NOVEMBER 2017 REPUBLIC OF FIJI NATIONAL CLIMATE CHANGE POLICY 2018-2030 Republic of Fiji National Adaptation Plan A pathway towards climate resilience Fiji NDC Implementation Roadmap 2017-2030 Betting a pamway for emasions reduction target under the Para a#4National Planning Documents Fiji's National Development Plan (NDP), with the vision of "Transforming Fiji", maps out the way forward for Fiji and all Fijians to realise our full potential as a nation. 20-Year Development Plan (2017-2036) and a comprehensive 5-Year Development Plan (2017-2021). • These plans work together, as the 5-Year Development Plan provides a detailed action agenda with specific targets and policies that are aligned to the long-term transformational 20-Year Development Plan.#5National Planning Documents The NDP is aligned with global commitments including the 2030 Agenda for Sustainable Development and the Paris Agreement on Climate Change. Consistent with the goal of the Paris Agreement to achieve climate neutrality and a low-emission world, we will develop a 2050 Pathway to decarbonise the Fijian economy. The integrated nature of development and the need for multi-sectoral solutions are recognised and addressed. Critical cross-cutting issues such as climate change, green growth, the environment, gender equality, disability and governance are mainstreamed in the NDP. Climate Change Policy 2018-2030 (NCCP), presents a more detailed and deliberate articulation of Fiji's priorities in reducing present and future climate risks, while maximising our long-term gains in development. The NCCP is a policy document that is defined by its foresight and evidence-based approach in reducing climate risks, with the aim of addressing the specific climate vulnerabilities faced by Fiji and the Fijian people. The policy lays the foundation for national climate change legislation in Fiji and sets out the most comprehensive game plan to-date of how Fiji plans to deliver on its Nationally Determined Contribution under the Paris Agreement. It also establishes a clear mandate for Fiji's National Adaptation Process and Plan and the implementation of Fiji's Low Emissions Development Strategy.#6National Planning Documents Green Growth Framework for Fiji: Restoring the Balance in Development that is Sustainable for Our Future. The word 'sustainable' has been in Fiji's development agenda for a large part of the four decades since independence, similar to the rest of the world. This Green Growth Framework is an innovative tool to accelerate integrated and inclusive sustainable development that inspires action at all levels in the country to build environmental resilience, build social improvement and reduce poverty, build economic growth, and build resilience to the anticipated adverse affects of climate change. Balance between the three pillars of sustainable development; namely economic, social and environmental - to ensure that the balance is restored and that future development is both sustainable and can be sustained...and with Fiji remaining a largely pristine island country#7Guidelines for Preparation, Appraisal and Approval of Projects Under the Public Sector Investment Programme Guidelines for Preparation, Appraisal and Approval of Projects Under the Public Sector Investment Programme (PSIP) (PSIP) The Public Sector Investment Programme (PSIP) has operated in Fiji for decades under various policies and operating procedures. new Guidelines Document (Guidelines) to direct and guide future front-end PSIP processes is now finalised. Need for effectively and efficiently allocating scarce public investment funds to optimize development outcomes for the people of Fiji. Effective procedures for preparing, appraising, and approving both ongoing and new PSIP projects to ensure that value for money is being achieved for every dollar spent on public investment. Budget and Planning Division, Ministry of Finance and Strategic Planning, National Development and Statistics Republic of Fiji February 2023 The new planning procedures contained in the Guidelines will provide budget sector agencies with greater certainty on resources available for their medium-term investments, thus improving operational efficiency. The Guidelines explain how the new front-end procedures of preparation, appraisal and approval will work, focusing on what procedures must be followed, and which organization is responsible for which procedures.#8Key Changes to Processes as a Result of the Adoption of the NEW Guidelines Ongoing Projects Approved and ongoing PSIP projects that are performing have the first call on future PSIP funding. Fiscal Strategy (FS) planning processes aim to ensure that approved and performing ongoing PSIP projects will have the first call on total capital resources allocated by the FS. Allocation of investment resources in medium-term strategic ways will increase investor certainty and improve the quality of projects.#9Key Changes to Processes as a Result of the Adoption of the NEW Guidelines Steps Initial project approval Medium Term PSIP entity ceiling Regular project reviews 5-Yearly Special evaluations (if required) Description • Entity annual PSIP budget ⚫ submission • Review of the initial project approval, taking note of total funding, projected cash flow, project start and end dates etc. Project performance is monitored and evaluated against initial project outcomes. All projects funded must be within the entity's medium-term PSIP ceilings. After funding ongoing projects, new projects can only be introduced if there is fiscal space for that FY and forward years. All ongoing projects are subject to regular joint reviews to inform whether projects are performing well and forecast future funding needs. Projects with major implementation issues may be restructured or cancelled by Ministry. Review information should be disclosed in budget submissions and considered during the budget approval stage. For projects operating long-term (5 years +) without clear end dates, Ministry shall determine if they are performing and warrant ongoing funding or should be phased out. For large projects (more than $2.0m/annum), Ministry shall call for formal evaluations to be undertaken every five years. Ministry can also consider evaluating smaller projects if necessary (Refer to User Manual, 6). Ongoing budget submissions will continue with the unified submission of OPEX and CAPEX budgets. PSIP sections to indicate clear delineation of ongoing and new projects.#10Key Changes to Processes as a Result of the Adoption of the Steps Ministry evaluation of the entity PSIP budget submission NEW Guidelines Description For ongoing projects, Ministry must consider the following when assessing submissions: If initial approval objectives are being met within agreed funding levels; Compliance with PSIP ceilings and balance between ongoing & new projects; Performance reviews; information coming from regular The results of special evaluations; and Content of entity budget submission. Parliament approval of The Ministry, through the Minister responsible for the entity PSIP budget PSIP budget publications by entity and Ministry to include ongoing projects presentation of the full PSIP to Parliament for final approval (as part of normal budget announcement) Once approved by Parliament, two publications to be released: PSIP-related 1. Entity publication (all PSIP projects within entity for both new and ongoing); and 2. Ministry publication covering all entities in the full PSIP (new and ongoing) - either as a new stand- alone document or part of the annual budget kit.#11Key Changes to Processes as a Result of the Adoption of the NEW Guidelines New Projects A major change from the current practice of appraising new projects, which the Guidelines introduce, is a two-stage process. Early-stage preparation (Stage 1) involves initial identification, research and discussion for the preparation by budget entities of a relatively simple Screening Note to be evaluated by the Ministry to determine if a detailed appraisal study (Stage 2) is warranted. Guidelines 7 of the User Manual thoroughly explain the preparation of screening notes. The screening notes need to be submitted at any time during the year to the Ministry for desk evaluation and decision-making, based on weighted criteria for: economic impact; social impact; environment, climate change mitigation and climate change adaptation and disaster resilience; administrative/financial capacities; and risk analysis and management plan. The weighted criteria and scoring system will enable the Ministry to make more informed recommendations on the medium-term allocation of PSIP resources. Both the criteria and weightings may be varied over time according to the views of government policymakers and to allow for undertaking sensitivity analysis.#12Key Changes to Processes as a Result of the Adoption of the NEW Guidelines Steps Identify new projects • Preliminary research and analysis Review of funding options MTFS - including Budget entity prepares screening note Agreement on funding arrangements for costs of appraisal (must be before appraisal starts) Publication of Pipeline of cleared Phase 1 Projects Description . • • • • • . • • • • This remains the responsibility of budget entities. Budget entities to identify new projects with strategic fit to national priorities and available funding. The budget entity will undertake the research and analysis and can also involve partnerships between budget entities or development partners. Other ministries may be co-opted to assist with preliminary research and analysis (e.g., land tenure, environment, technical engineering, etc.). Initial identification should consider whether new funding needed for the project is realistically forthcoming, considering fiscal limitations under the MTFS. The core objective is to consider if the proposed project warrants a detailed appraisal study. Screening notes can be submitted any time during the year or subject to Ministry periodically advising of specific lodgement dates. The Budget & Planning Division will evaluate and decide on screening notes. Standard evaluation criteria drawn from the screening note template will be used. Appraisal for smaller investments should be conducted in-house by budget entities; however, larger projects may require a budget to undertake detailed assessments such as EIA, disaster risk assessments, economic analysis etc. The cost of such studies must be indicated in the screening note for Ministry clearance. Following the passing of the budget, each entity is to publish a detailed list of all potential entity projects that have received Ministry clearance at the screening stage (Stage 1). Ministry to publish a consolidated national list of all potential projects cleared through Stage 1 screening.#13Fiji's National Infrastructure Investment Plan Fiji National Infrastructure Investment Plan 2023-2034 PRIF Pacific Region Infrastructure Facility 444 The PRIF provided technical assistance for the development and formulation of the NIIP. The work on Fiji's NIIP started in February 2022. The objective of the TA was to help develop a NIIP and to support the strengthening of the Fiji's infrastructure planning processes, procedures and methodologies - particularly those supporting the early-stage screening of projects. Fiji's NIIP focuses on key infrastructure sub-sectors including: land, air and maritime transport (roads, bridges, jetties, ports and airports); water and sewerage; solid waste; energy/electricity; housing; telecommunication; and waterways. The NIIP will primarily help implement reforms, strengthen tools and approaches to screening capital construction projects (Gateway 1), and provide a longer lead time for future 'unfunded' pipeline projects to be systematically presented and discussed with financiers through the project 'Dossier'.#14Fiji's National Infrastructure Investment Plan Planning Framework and Process Enhancements • As part of the NIIP project an early "Mainstreaming Report" was completed to ensure the NIIP would pilot, provide supporting tools, and build on reform initiatives proposed for Fiji's PSIP processes. The specific recommendations that were adopted and delivered through the NIIP from the Report were as follows: 1) Establish central register of all infrastructure projects. 2) Include capital projects for "On" and "Off" budget entities. 3) Include projects for both domestic budget and external funding. 4) Incorporate priorities set in strategic plans, documents, and policies. 5) Systematic screening and prioritisation of pipeline projects. 6) Introduce prioritisation principles earlier in the development cycle. 7) Ensure on-going financial viability is considered. 8) Support the implementation of medium-term entity funding thresholds.#15Process for Compiling NIIP The implementation arrangements for the NIIP were as follows: (i) NIIP Steering Committee a high-level committee, chaired by the Permanent Secretary for the Ministry. The Steering Committee is responsible for the review of recommendations made by the NIIP Task Force prior to the submission of the NIIP to Cabinet; and (ii) NIIP Working Group - chaired by the Ministry and comprised of nominated representatives from various other ministries/departments/agencies responsible to facilitate necessary inputs and data, consultation, and review the mainstreaming process and long list of projects. As part of the NIIP production process, two multi stakeholder workshops were held: - Workshop 1 (17 August 2022) - the primary purpose of this workshop was to review and update the pipeline of projects that had been assembled from interviews and extraction of data from agency lists and plans. The workshop also introduced the framework for prioritising unfunded pipeline projects and guided participants through the use of this framework. Workshop 2 (06 October 2022) - the primary purpose of this workshop was to discuss the outcome from the financial analysis and review the capital construction pipeline, results of the preliminary multi-criteria analysis and prioritisation (MCA) framework analyses, discuss challenges and results and note any follow-up refinements post- workshop. The workshops provided an opportunity for participants to understand the importance of infrastructure and why a 10- year horizon of planned investments is needed to provide a longer lead-in time to fund these large projects.#16PROGRAM FUNDING CONSTRAINTS Medium-term Fiscal Strategy (MTFS) PSIP estimates Infrastructure proportioning Project Approval Process PREPARE PROJECT DOCUMENTS Screening Note Capital and recurrent cost forecast Benefit assessment Implementing Agency Reject, Rework or On-hold SUBMIT CAPITAL BUDGET REQUEST Review project documents Review budgets Submit to MOE Line Ministry MOE Reject, Rework or On-hold CABINET SIGN-OFF Cabinet paper Project documents MOU/Agreement for MOE signing Stage 2 Gateway Cabinet PREPARE MOU/ AGREEMENTS - Vetting of MOUS/Agreements - Financial implication - Consultation(s) B&P/IA/Donor COMPREHENSIVE SUBMISSION Appraisals paper/ business case preparation and submission IA/B&P MOU/Agreement Signed (Loans, Grants etc) ANNUAL PSIP PUBLICATION Approved Budget Stage 1 and Stage 2 cleared projects B&P Cabinet approval of budget EVALUATION AND SCREENING Screening note Capital and recurrent cost forecast - Benefit assessment etc B&P APPRAISE PROJECTS - Feasibility study Cost-Benefit Analysis Social/environmental assessments etc. Multilateral Donor MANAGE PROJECT DOSSIER Briefing note Capital and recurrent cost forecast Large Gov. Funding (>$10m) Benefit assessment etc CCID/IA/B&P PLANNING Stage 1 Gateway MOE Multilateral Donor Bilateral Fund/PPP APPRAISING APPRAISE AND PACKAGE WORK Evaluate budget submissions Checking funding against MTFS ceilings Budget circular B&P/IA BUDGET PREPARATION Budget consultations Budget finalisation Prepare Cabinet/Parliament submission B&P Gov. Allocation (<$10m) BUDGETING#17Mainstreaming NIIP to Enhance the Public Sector Investment Processes The focus areas, have come from multi-stakeholder consultation, evidence gathering and analysis of the current processes and planned reforms. NIIP is being mainstreamed into the PSIP reform strategic framework which is based around reforming three pillars: strategic drivers; business processes and publications/outputs. reforming Key points for mainstreaming are: 1. 2. 3. Use of key strategic documents to aid in the identification of capital construction projects and setting the MCA prioritisation criteria. Piloting and enhancing stage 1 PSIP processes to document capital construction projects, assess their costs and benefits, and screen and prioritise these large capital investments in a way that promotes fiscally responsibility. Providing additional tools and recommended enhancements to current PIM practices and ensuring these enhancements are incorporated into existing manuals, guidelines, and policy statements.#18Mainstreaming NIIP to Enhance the Public Sector Investment Processes STRATEGIC DRIVERS PSIP PROCESSES NIIP ENHANCEMENTS National Development Plan Corporate and Cross- Cutting Plans Medium-Term Fiscal Framework (MTFF) Medium-Term Fiscal Strategy (MTFS) Annual Budget Legend 2022 NIIP will support this reform area. Stage 2 enhancements progressed in 2023. Identification Screening and Prioritisation Evaluation Screening Funding Appraisal Appraisal Evaluation Appraisal Budget Circular Budget Submission Budget Approval Implementation Central multi-sector register (database) of capital construction projects. Inclusion 'off-budget' infrastructure entities. ■ Template for rating project impact criteria in the screening stage (based on guideline 7). ■ MCA framework to help rate and prioritise projects for screening. Identify next wave of high-priority projects for development. ■ Assess overall funding thresholds and review project pipeline against these constraints. Source: User Manual for the PSIP Guidelines and NIIP project analysis#19How is Fiji ensuring the integration / linkage between PSIP and NIIP? A candidate project for financing is assessed based on the following criteria: - Alignment with the NDP - Alignment with the Climate Change Policy Priority for the government - Project readiness - - Other consideration such as SDGs and Paris Agreement - Public Sector Investment Programme (PSIP) – based on weighting/ projects are ranked Economic viability Social Environment/Climate Change Mitigation/Climate and Disaster Resilience#20Improvement Opportunities - Identified by NIIP 1. Development of medium-term strategic and policy priorities 2. Future capacity building in project screening and MCA analysis 3. Further development of briefing notes for the Infrastructure Dossier 4. Formalising the central register (database) of pipeline projects 5. Further development of published pipelines for off-budget entities 6. Enhanced ongoing engagement of development partners#21- Fiji's National Infrastructure Investment Plan – to be . • • success Participatory process used to develop and implement the plan Consultation with ministries / departments / agencies / statutory - authorities/private sector / donor agencies/funding agencies Management and Coordination Commitment and Ownership Prioritization - balance projects Climate change - adaptation and mitigation Costing and Finances Results based Monitoring and Evaluation Resources Capacity and Constraints are addressed Policy Environment is considered#22Fiji's National Infrastructure Investment Plan – to be success - Fiji is at the forefront of global efforts to strengthen disaster and climate resilience by pursuing resilient infrastructure development. Impact of the climate crisis on Fiji's infrastructure development and the progressive actions taken by Fiji to build back better. Whole-of-government effort needed to build resilience. Mainstreamed adaptation into our national planning, ingraining climate- centric thinking across all aspects of Government decision-making. Longer-term, we need systemic reform to our multilateral system that properly values the long-term benefits of resilient infrastructure development. NIIP plays an important role in overall infrastructure development and planning focus on critical and prioritized development. -#23Next Steps for Implementation - NIIP and PSIP Guidelines • The Guidelines and the accompanying Manual involve a significant change from current practices. The successful implementation of new procedures will require enhanced knowledge and skills within all key responsible institutions. The Ministry has reactivated the Strategic Planning functions per the new Ministerial assignments announced by the Government. This will strengthen the planning functions of the Government. By reactivating the Strategic Planning functions within the Ministry, the responsibility for coordinating short, medium and long-term national and sectoral development plans and objectives whilst line ministries and departments will be responsible for the planning and implementation of specific development policies and programmes. Implementing the Guidelines and new procedures will enhance capacities for preparing a better quality PSIP and result in value for money (VfM) projects describing general principles governing good planning, procurement and management. A key principle of VfM analysis is that to judge whether an intervention/ or a project was worthwhile, the money spent on that intervention needs to be assessed alongside what has been delivered (outputs) or achieved (outcomes and impact). Thus, the reason for the new guidelines to be implemented with adequate training for staff designing and implementing a programme or project. It is intended to develop a stand-alone capacity development plan to support implementation.#24Next Steps for Implementation - NIIP and PSIP Guidelines Cabinet has: . endorsed the Guidelines for use in the preparation, appraisal and approval of projects under the PSIP, beginning with the nine pilot ministries/entities in the 2024-2025 Budget; and endorsed the Ministry of Finance, Strategic Planning, National Development & Statistics as the lead for the implementation of the Guidelines and NIIP. Implementation Plan and M&E is currently being finalised. MINISTRY OF FINANCE WEBSITE (economy.gov.fj) Final PSIP Guidelines 16 February 2023.pdf (economy.gov.fj) https://theprif.org/document/fiji/national-infrastructure-investment-plans/fiji-national-infrastructure-investment-plan#25TEE BIDE DE DE Thank you!!!! Rerevaka na Kalou ka doka na Tui THE FIJIAN GOVERNMENT Questions???