Progress Report: Strengthening Debt Management in the Philippines

Debt Portfolio Analysis Workshop participants

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Progress and Evaluation Report

As of March 2018

Strengthening Debt Management in the Philippines
(PHI/OT/ABK)

Bureau of the Treasury | United Nations Conference on Trade and Development

DISCLAIMER

This report is prepared and produced with support from the Strengthening Debt Management Project. While the project is jointly implemented by the Bureau of the Treasury (BTr)-Philippines and the United Nations Conference on Trade and Development (UNCTAD), the views expressed in it are those of the author/s and do not necessarily represent the official views of either the BTr or UNCTAD.

Contents

Abbreviations and Acronyms. 4

Executive Summary. 5

Part 1: Introduction. 7

1.1.   Project Background. 7

1.2.   Project Objectives and Outputs. 7

1.3.   Changes in Project Design. 8

1.4.   Management and Staffing. 9

Part 2: Evaluation of Project Implementation. 10

2.1.   Management Dashboard. 10

2.2.   Key Achievements. 10

2.3.   review of Completed, pending and ongoing Activities. 14

2.3.   Results and Emerging Impacts. 16

2.4.   Implementation Challenges. 21

Part 3: On-going and Pending Activities (2018) 21

3.1.   Progress on Agreements Reached At the last Steering Committee Meeting. 22

3.2.   Financial Status. 22

3.3.   Exit Strategy. 23

Part 4: Annexes. 24

Annex 4.1: Minutes of PSC Meeting (21 February 2018) 25

Annex 4.2: Project Document Amendment 26

Annex 4.3: Completed Training Activities. 42

References 49

List of Tables

Table 1. Summary of Accomplishments by Project Objectives/Outputs, Pending/Ongoing Activities. 11

Table 2. Completed training and related activities by number of participants. 14

Table 3. Debt Management Targets. 16

Table 4. The Philippines Sovereign Credit Ratings, 2012-2017. 17

Table 5. Summary of ongoing and/or pending activities, completion plan. 21

Table 6. Summary of Agreements and Progress of Accomplishments. 22

Table 7. Summary of Income and Expenditures, 2011-2018 (in USD) 23

Table 8. Proposed Training Activities for 2018 by Date, Duration, Location, Provider and Estimated Cost 34

Table 9. Proposed Training Activities for 2018 by Relevance (What Project Outputs are being addressed?) 36

Table 10. List of completed training activities, by year, location, training provider, number and name of participants, and estimated cost 42

List of Figures

Figure 1. Status of project implementation at a glance. 10

Figure 2. The Philippines CDS levels outperform some higher or similarly rated peers. 19

Abbreviations and Acronyms

ADB Asian Development Bank LMS Liability Management Service
ALM Asset and Liability Management
AMS Asset Management Service MISS Management Information System Service
BTr Bureau of the Treasury MTDS Medium Term Debt Strategy
BSP Bangko Sentral ng Pilipinas NG National Government
CB Capacity Building NPO National Project Officer
CDS Credit Default Swaps OTC Over-the-Counter
CL Contingent Liability OD Organizational Development
CMSPD Capital Market Strategy & Planning Division OS Operating System
DMFAS Debt Management and Financial Analysis System PD Payments Division
DMAD Debt Management and Analysis Division PM Project Manager
DoF Department of Finance PSC Project Steering Committee
DRMO Debt and Risk Management Office RIDD Receipts, Investment and Disbursement Division
DSPD Debt Strategy and Planning Division RM Risk Management
DTOP Deputy Treasurer of the Philippines RMD Risk Management Division
FMD Funds Management Division nRoSS New Registry of Scripless Securities
FTD Fund Transfer Division SC Steering Committee
GDP Gross Domestic Product SOD Securities Origination Division
GS Government Securities SSRD Scripless Securities Registration Division
HR Human Resource TOO Treasury Office Order
IMAS B Investment Management Application System B TOP Treasurer of the Philippines
IMF International Monetary Fund TOR Terms of Reference
ISIN International Security Identification Number UNCTAD United Nations Conference on Trade and Development
ICT Information and Communication Technology
LAN Local Area Network WB World Bank
LGU Local Government Unit WBI World Bank Institute

 

Executive Summary

The project, “Strengthening Debt Management in the Bureau of Treasury, Philippines (PHI/0T/ABK)”, is a technical cooperation undertaking between the United Nations Conference on Trade and Development (UNCTAD) and the Bureau of the Treasury (BTr), Philippines, that aims to build debt management capacity in the BTr. UNCTAD, the developer of the Debt Management and Financial Analysis System (DMFAS) is the executing agency, while BTr is the funding source and the government implementing agency.

The project started in March 2011 and was initially programmed for 3 years, supposedly ending in March 2014. However, at the request of the Treasurer of the Philippines on 10 September 2013, the project was extended to end-March 2015. There had been three more extensions (one ending in March 2017, another in December 2017, then June 2018 and, lastly, December 2018.)

The project has 4 major objectives, namely: (1) To implement a planned, managed, monitored and evaluated project; (2) To improve institutional arrangements with BTr and build overall human and technical capacity in support of debt management; (3) To strengthen risk management and debt analysis (“middle office”) functions; and (4) Strengthen specific debt management functions in BTr. Each objective has major outputs, and some of them had either been expanded or scaled down during project implementation.

During the course of project implementation, several outputs and activities were removed, while others were added. The new activities related primarily to training of BTr officials and staff, while those removed included website improvement, disaster recovery, electronic document management, purchase of equipment and recruitment of project consultants.

Accomplishments

Key accomplishments since 2011 included the following:

  • Training and Related Activities

BTr officials and staff have received comprehensive training aimed at strengthening overall human resource capacity for performing debt and risk management functions. Training programs on various topics included DMFAS core capacity building programs, consisting of Debt Statistics (2015), Debt Data Validation (2016), and Debt Portfolio Analysis (2017).

More training activities are likewise programmed for 2018. The list is presented in Annex 4.2.4.

  • Upgrading of DMFAS and IT Development

Completed activities related to Objective 4 (Strengthening specific Debt Management Functions within BTr) included:

  1. DMFAS upgrade from Version 5.3 to Version 6.1.4.
  2. Domestic debt data base migration program to DMFAS (key results included—completion of one time migration of historical data, validation of the migrated data (periodic migration is being done every after auction).
  3. DMFAS 6 functional training for current and new users (1st batch of Training for Trainers completed in 2013, 2nd batch was completed in March 2014, third batch in 2016).
  4. Technical Training on DMFAS (including training for Trainers) for MISS and DMAD Staff (Oracle), among others.
  5. Hiring of IT Expert, dedicated to linking DMFAS with other BTr systems (nROSS, BTMS, etc.)
    • Regular conduct of project planning and monitoring activities

These comprise of Steering Committee and project management meetings, the periodic submission of reports and coordinative consultations between UNCTAD and BTr.

  • Reports/Aide Memoire of UNCTAD Missions

These included the Jaime Delgadillo (OD Consultant) and Michael Flynn (Risk Management) reports. The reports presented recommendations on (1) the re-organization process and implementation of revised business processes, (2) updating of existing functions manual, procedures manuals, organizational chart based on an assessment of needs, and (3) production of a debt management regulatory framework.

Marilyn De Guzman, UNCTAD IT Consultant, has conducted 4 separate missions from 2012 to 2013 to support the migration of securities data to DMFAS and to train BTr staff on technical aspects of DMFAS. Reports for each mission have been submitted. UNCTAD missions also submitted reports.

For debt reporting and analysis functions, the project in 2013 has purchased Analytica for modeling exercises, as well as contracted Bloomberg for a 1 year subscription of its live feeds.

Project Results and Impacts

In more ways than one improved debt indicators can be attributed to project outputs, particularly in the area of capacity building. Medium term debt management targets have largely been accomplished, allowing the government to meet its financial needs at considerably reduced costs (which is the goal of the project). Debt-to-GDP ratio decelerated from 49.2 percent in 2013 to 46.5 percent in 2014. The project has also raised the skills levels of individuals, as indicated among other things not only by improved performance but also by their ability to transfer knowledge and skills to fellow BTr staff members through on-site training and coaching.

BTr as an institution has benefitted from projected-supported human capital upgrades, and has accomplished CB objectives that resulted in the following: (a) Improved BTr Organizational Structure and Retooling, (b) Strengthened Risk Management and Strategy Formulation Capacity, (c) Improved Debt Management Performance Due to Strengthened Structures for Development of Capital Markets, (d) Improved Treasury and Cash Management Operations, and (e) Enhanced Information Generation and Reporting Capacity. At the individual staff level, BTr staff who have undergone DMFAS Training for Trainers have successfully conducted re-echo trainings for BTr DMFAS users. Training evaluation results showed that training objectives were achieved and that participants found the trainings helpful in raising their knowledge and skills levels, indicating increased levels of proficiency not only for advanced users but also for basic users in BTr.

Pending/Ongoing Activities (2018)

There are key project activities that are either ongoing or pending. These include:

  • Objectives 2 & 3: Training Activities for 2018
  1. Objective 4: (a) Development and operation of an application/program/script that links nROSS to DMFAS6, which shall facilitate periodic migration of debt data (eg government securities); and (b) Development of BTr internal DMFAS user protocols, as well as manual on debt information flow, data exchanges and processes.

(Note: BTr plans to hire the IT Expert tasked with completion of pending Objective 4 activities. These activities shall become part of the Job Description of the BTr position to which he will be appointed. Responsibility for their completion shall then be effectively transferred from the project to the BTr.)

Implementation Challenges

Project implementation has been hampered by the following:

  • High turn-over of personnel (recognized by the Project Logframe as one of project risks).
  • On IT outputs (Objective 4), delays in completion of targets are caused by extended work on nROSS, which is a separate IT project of the BTr.

Exit Strategy

The targeted completion of project activities by End Of 2018 requires adoption of a phase-out strategy to sustain the capacity building processes introduced during various stages of project implementation, and further build on the progress that have been achieved so far. The strategy has 3 key result areas: (1) project evaluation, (2) inputs required during transition, and, (3) institution building and knowledge development and transfer.

Part 1: Introduction

This progress report also serves as an evaluation of “Strengthening Debt Management in the Bureau of Treasury, Philippines (PHI/0T/ABK).” It is presented in 3 parts: Part 1 is a brief introduction, recalling the context of debt management in the Philippines with the BTr as key institutional player. It also describes the project—objectives, institutional arrangements, etc. Part 2 attempts to internally evaluate the project. It makes a comparison between planned outputs and activities with actual results as method of evaluation. Part 3 is an accounting of ongoing and pending activities. It also presents the financial status of the project as well as the next steps.

The project is a technical cooperation project between the United Nations Conference on Trade and Development (UNCTAD) and the Bureau of the Treasury (BTr) to build debt management capacity in the BTr. UNCTAD, the developer of DMFAS, is the executing agency while BTr is the funding source and the government implementing agency.

The project started in March 2011 and was initially programmed for 3 years to end-March 2014. However, due to pending activities and availability of project funds, implementation has been extended multiple times since then.

1.1. Project Background

The BTr and UNCTAD have a long-standing relationship in regards to improving debt management in the Philippines. The DMFAS was first installed in BTr’s Debt Monitoring and Analysis Division (DMAD) in the late 1980’s, and BTr has one of the largest external debt data bases among countries in the DMFAS user-institution community. Through the project, the BTr has now upgraded from the earlier versions of DMFAS to version 6.1. The BTr kept a maintenance agreement with UNCTAD for the continued provision of system upgrades and of help desk services. Officials from BTr also regularly attended UNCTAD’s international debt management conferences and Advisory Group meetings; distinguishing themselves as key stakeholders and supporters of the DMFAS Programme in Geneva, Switzerland.

In 2010, taking advantage of available funding from the inter-agency Financial Sector Stabilization Program (FSSP), the BTr requested UNCTAD to prepare a document presenting a comprehensive approach to strengthening its debt management operations.[1] This eventually led to the formulation and approval of this project in December 2010. Implementation started in March 2011.

The project planned for, among other key outputs, hiring of consultants in areas of human resources and organizational development, risk management, contingent liability management, asset and debt management, etc. However, during project implementation, the BTr had pursued a vigorous hiring of staff with exceptional qualifications, resulting in highly improved overall organizational capacity. Thus, on its own, the BTr has carried out the functions, and produced key outputs, that were initially envisioned to be the responsibility of, and to be produced/delivered by, project consultants. For this reason, BTr and UNCTAD agreed, in 2015, to amend the project document which dropped several project outputs and instead focused on providing support for training activities, with the long-term goal of internally improving the overall human resource capacity of the BTr.

Initially designed for 3 years, the project has been extended at least four times, at no additional cost, firstly from 2014 to 2015, secondly from 2015 to 2016, thirdly to December 2017, and finally to end of June 2018. In what could be a final extension, project implementation will now end in 31 December 2018.

1.2. Project Objectives and Outputs

The project aims to strengthen the Philippines’ Bureau of Treasury (BTr) ability to perform its debt management functions. It takes a holistic approach by addressing both the overarching organizational issues as well as the key operational tasks that impact on its debt operations.

The long-term development objective of the project is to support the Philippine Government’s debt strategy and, as a result, assist it to reduce its levels and costs of borrowing, thereby making more resources available to alleviate poverty and improve national living conditions.

It has 4 major objectives and had 20 original outputs. The 4 major objectives are: (1) To implement a planned, managed, monitored and evaluated project; (2) To improve institutional arrangements with BTr and build overall human and technical capacity in support of debt management; (3) To strengthen BTr’s risk management and debt analysis (‘middle office’) functions; and (4) To strengthen specific debt management functions within the BTr.

Twenty broad outputs were originally targeted to achieve the 4 major objectives, as follow:

  1. To implement a planned, managed, monitored and evaluated project
    • A detailed project work plan and established governance structure
    • An effectively managed, monitored and evaluated project
  2. To improve institutional arrangements with BTr and build overall human and technical capacity in support of debt management
    • Improved organizational structure, regulatory framework and performance measurement in support of debt management
    • Recommendations on strengthening communications and coordination on debt management in the overall context of Asset and Liability Management
    • Strengthened overall HR capacity for performing debt and risk management
    • Improved IT service management in support of debt management
    • Improved IT infrastructure and equipment to support debt management
    • Improved disaster recovery of debt management systems
    • Strengthened financial systems architecture for debt management
    • Improved website and content delivery
    • Electronic Document Management and Automated Workflows are in place
  3. To strengthen BTr’s risk management and debt analysis (‘middle office’) functions
    • Improved treasury risk management functions in support of debt management
    • Improved debt reporting and analysis functions
    • Strengthened contingent liability management for Treasury functions
    • Improved cash management in support of debt management
  4. To strengthen specific debt management functions within the BTr
    • Upgrade of DMFAS system to Version 6
    • A consolidated data base
    • Improved debt information flows and data exchange
    • Debt data validation and training
    • Customized data reports and linked excel worksheets templates from DMFAS and other BTr systems

However, during the course of project implementation, the Steering Committee (SC) agreed to realign the project with other changes taking place in the BTr, including sourcing of alternative funding for project activities, and several of the outputs were dropped. These are detailed below.

1.3. Changes in Project Design

Refocusing of objectives

The BTr implements various inter-related projects or activities (some jointly with other government agencies). These include activities that support the Treasury Single Account (TSA), the Treasury Management System, and the Government Integrated Financial Management Information System (GIFMIS)—all of which are being implemented under the Public Finance Management (PFM) agenda of the Philippine government. Some of these activities likewise were initially part of the project scope. However, for purposes of streamlining and in order to avoid duplication, the SC in its meeting on 12 April 2013, decided to downscale the project outputs from 20 to 15. The SC dropped 5 of 9 outputs under Objective No. 2 (To improve institutional arrangements with BTr and build overall human and technical capacity in support of debt management), and modified Output 3.2 relating to improved reporting and analysis.  The outputs dropped are:

  • Output 2.5: Improved IT infrastructure and equipment to support debt management
  • Output 2.6: Improved disaster recovery of debt management systems
  • Output 2.7: Strengthened financial systems architecture for debt management
  • Output 2.8: Improved website and content delivery
  • Output 2.9: Electronic Document Management and Automated Workflows

The modified output was: Output 3.2 – Improved Debt Reporting and Analysis Functions

The Treasurer also requested increased focus and funding for regional and international training activities under Output 2.3, Strengthened overall HR capacity for performing debt and risk management and this has now evolved into the major project expenditure component.

However, on its meeting on 20 December 2013, at the request of the Treasurer, the SC decided to re-introduce project support for TSA and TMS (Output 2.7). In subsequent SC meetings, this decision was reconsidered, and Output 2.7 was again cancelled.

With respect to Output 3.2, Improved Debt Reporting and Analysis Functions, during the 6th SC meeting of July 10 2013, the BTr (through the Treasurer) stated that the DPA workshop was not necessary, as the staff already had the requisite skills on portfolio analysis, and that this could be removed from the project. In addition, the BTr indicated its preference for local over international experts to be hired as resource persons for the debt statistics workshop. The conduct of both the Debt Statistics Workshop and Debt Portfolio Analysis Workshop has been on hold, however, in deference to agreed steps discussed at the meeting of the Debt Management Sub-Project Team (SPT1) on 8 August 2013, specifically in reference to the point raised that the BTr has acquired capacity to produce Statistical Bulletins even without the workshops. (Sub-Project Team 1, 2013)

Change in leadership in BTr gave rise to discussions on the possibility of re-introducing the previously-cancelled DMFAS workshops. The SC eventually agreed to get these workshops done, with Debt Statistics in 2015, Data Validation in 2016, and Portfolio Analysis in 2017.

1.4. Management and Staffing

Project implementation started in 2011 with a Geneva-based Project Manager (PM)—Vanessa Thorpe—in charge of day-to-day operations. In 2012, Ms. Thorpe visited the Philippines to oversee and coordinate implementation of project activities. A new Geneva-based Project Manager (Balliram Baball) assumed his functions in 2012. He retired in April 2015, and Manuela Jander replaced him in February 2015.

In addition, given the comprehensive and complex nature of the project, the BTr and UNCTAD decided on June 3 2011 to appoint a Project Steering Committee (PSC), or simply Steering Committee (SC), and five sub-project teams. The SC, which is responsible for policy making, is chaired by the Treasurer with two Deputy Treasurers and the Chief, DMFAS Programme as members. Each sub-project team comprises a Deputy Treasurer as the Coordinator, with a sub-project team chief and project members all drawn from the BTr.

The project hired a Chief Technical Adviser (CTA) for 9 months in 2013. Also on board in 2013 was a National Project Officer (NPO), who remained contracted, except for a break in 2015, until today (2018). Consultants were also recruited to support specific project activities, such as technical activities relating to DMFAS workshops.

An Administrative Assistant at UNCTAD Geneva was recruited from November 2012 through September 2013 on a part-time (later full-time) basis. The project has so far contracted 4 Admin Assistants/ Individual Contractors based in Geneva.

Part 2: Evaluation of Project Implementation

2.1. Management Dashboard

In a number of ways the country’s improved debt indicators can be attributed to BTr’s performance and achievement of project outputs, particularly in the area of capacity building that, one, raised the skills level on personnel, resulting in improved data management through DMFAS and, two, helped enhance the inputs for formulation of debt strategies. The project has contributed to achievement of medium-term debt management targets, such as reduction in debt service payments and reduced financing risks (reduced amounts of short term bills and average maturity of debt portfolio), have largely been accomplished, allowing the government to meet its financial needs at considerably reduced costs (which is the goal of the project). Debt-to-GDP ratio decelerated from 49.2 percent in 2013, 46.5 percent in 2014, 44.7 percent in 2015, and 42.1 percent by end of 2016. The project has also raised the skills levels of individuals, as indicated among other things not only by improved performance but also by their ability to transfer knowledge and skills to fellow BTr staff members through on-site training and coaching.

Outstanding/pending activities include conduct of training activities planned for 2018 as well as completion of IT-related outputs.

PROJECT GOAL: Help reduce debt levels and costs of borrowing, thereby making more resources available to alleviate poverty and improve national living conditions.

Project implementation is ongoing—and has contributed to meeting key Medium Term Debt Management Targets: reduced debt service payments, reduced percentages (to total debt) of short term debt, maintained long average residual maturity (Table 2). Debt-to-GDP ratio decelerated from 49.2 % in 2013 to 42.1 % in 2016.

Figure 1. Status of project implementation at a glance

LEGEND 0-25% of Performance Indicators Achieved 26-50% of Performance Indicators Achieved
51-75% of Performance Indicators Achieved 76-100% of Performance Indicators Achieved

 

2.2. Key Achievements

From start of the project in 2011 until December 2017, there had been significant overall progress in project implementation. Also significant for the latter period (specifically the last quarter of 2013 until 2017) was the introduction and completion of new activities, especially for Objective Nos. 1 and 3, in relation to institution and capacity building support for BTr’s debt management operations. Discussed further below are other details on the progress of project implementation, such as review of completed activities, results and emerging impacts, pending activities, and implementation issues.

Table 1, below, presents a summary of key accomplishments of the project by objectives as of January 2018.

Table 1. Summary of Accomplishments by Project Objectives/Outputs, Pending/Ongoing Activities

Objectives Outputs Performance Indicators[2] Implementation Details Evaluation Summary[3]
Status Completed Activities/Key Accomplishments Pending/Ongoing Activities
1.    To implement a planned, managed, monitored and evaluated project 1.1)   A detailed project work plan and established governance structure ·    Annual work plans approved and implemented

·    Treasury Office Order issued and implemented

Completed ·   Governance structure and project office established.

·   Work Plan (please see Annex 4.2)

None On track with significant progress. Largely achieved with few remaining activities.
1.2)   An effectively managed, monitored and evaluated project ·    Project office established

·    1 end-of-project independent evaluation conducted

Ongoing ·   Staffing; hiring of consultants

·   Project amendment; project extended until December 2018 for completion of pending activities: Activity Plan updated Jan 2018.

·   PSC meetings; monitoring, progress reports submitted

·      Hiring of Project / Admin Assistant

·      Project evaluation

2.    To improve institutional arrangements within BTr and build overall human and technical capacity in support of debt management 2.1) Improved organizational structure, regulatory framework and performance measurement in support of debt management ·    BTr org’l structure aligned with int’l best practices, taking into account functions critical to DMO

·    Regulatory framework adopted; Revised Business Process implemented

·    Performance Evaluation System exist and in use

Completed ·   OD Consultant recruited in 2012 (Jaime Delgadillo). The Delgadillo Mission Report addressed Output Nos 2.1, 2.2, and 2.3. ·   Revision of organization structure, skills gaps analysis, capacity needs analysis, revision of job descriptions and performance evaluation system On track with ongoing/ pending activities. As far as the project is concerned, Objective 2 is largely achieved.

·   Pending activities are to be addressed by BTr outside of the project; training and related activities are ongoing.

2.2) Recommendations on strengthening communications and coordination on debt management in the overall context of Asset and Liability Management ·    Consultant’s reports accepted

·    ALM Committee in place and meeting regularly

Completed ·   Created 4 new divisions, 3 under the Liability Management Service (LMS) and 1 under the Asset Management Service (AMS).

·   Cash Flow Committee functions as ALM Committee

·   None
2.3) Strengthened overall HR capacity for performing debt and risk management ·    Skill gaps analysis conducted; at least 50% of personnel in debt and risk management functions trained.

·    Training documentation and reports are submitted to ensure that activities contribute to achievement of project objectives

Ongoing ·   Various project-supported trainings, conferences, workshops, etc. completed/ attended by BTr staff

·   DMFAS (functional and technical) trainings and workshops (Debt Statistics, Data Validation, Portfolio Analysis) completed

·   Training activities for 2018
3.    To strengthen risk management and debt analysis (“middle office”) functions 3.1) Improved treasury risk management functions in support of debt management ·    Initial identification of risk exposure of BTr has been conducted and documented by EO Project

·    Risk Register of the BTr is in place by EO Project

Ongoing ·   TRM Consultant (Michael Flynn) contracted, whose output addressed Output Nos 3.1, 3.2, and 3.3. Risk Management Framework being developed by RMD.

·   Ongoing review of processes within BTr (DMAD, CMSPD, DSPD, etc) and DoF (Corp Affairs Group) for identification and quantification of CL, processes/required linkages for recording of CL in DMFAS, Cash Programming & Cash Flow Forecasting (BTr-RIDD), and Bond Sinking Fund (BSF).

·   Project-supported trainings, conferences, workshops, etc. completed and attended by BTr staff (eg, Debt statistics workshop, Debt Portfolio Analysis workshop)

·   Equipment and software (Analytica, Bloomberg subscription).

·   Training activities for 2018 On track with significant progress. Largely achieved with few pending activities.

·   Pending activities are to be addressed by BTr and UNCTAD; target completion date is December 2018.

3.2) Improved debt reporting and analysis functions At least 1 related training conducted Ongoing
3.3) Improved cash management in support of debt management ·    Contingent Liability data collection policy/ procedures in place and being implemented by EO Project

·    BTr has contingent liability database by EO Project and analysis of such liabilities are being undertaken regularly

Ongoing
4.    Strengthen specific debt management functions in BTr 4.1)  Upgrade of DFMAS from version 5.3 to version 6 System is installed and operational; subsequent upgrades installed Completed ·   DMFAS6 operational; staff effectively use the system for recording and reporting

·   Database conversion from 5.3 to 6 successful

·   None On track with ongoing/ pending activities. Partially achieved.

·    All pending outputs to be addressed by project-hired IT expert, by December 2018.

4.2)  A consolidated database ·    Data from ADAPS exported to IMAS-B

·    Data  migration from IMAS-B to DMFAS

·    Periodic data migration running on a weekly basis

·    DMFAS able to produce consolidated reports by 2014

Completed ·   Link with IMAS B is functioning and securities are automatically incorporated into database ·   None
4.3)  Improved debt information flows and data exchange ·    Exchange of debt information among BTr divisions and other government agencies 75% accurate and comprehensive

·    Data flows streamlined and at least 50% automated

Ongoing ·   Linking nROSS data to DMFAS; linking DMFAS, to other BTr debt mgmt-related IT systems ·   Documentation on program routines and interfaces, including revisions done on existing applications.

·   Drafting of proposed internal procedures on use of DMFAS 6 and procedural manual on debt information flow, data exchanges and processes.

4.4)  Debt data validation and training ·    Historical data validated by 2014

·    At least 1 data validation training conducted

Completed ·   Validation Manual drafted ·   None
4.5)  Customized data reports and linked excel worksheets templates from DMFAS and other BTr systems Reports produced immediately in the desired formats Ongoing ·   Customized reports ·   DMFAS-linked programs (eg nROSS and BTMS)

Source: Annexes 4.2 – 4.3

2.3. review of Completed, pending and ongoing Activities

Discussed in more detail below is a review of completed, pending and ongoing project activities.

Steady progress for Objective 1

Completed activities for Objective 1 (Project Management) include—

  • Revision of work plans;
  • Preparation of Project Management Plan, Implementation Plan, Procurement Management Plan;
  • Requests related to procurement, financial authorization, etc.

Ongoing activities include conduct of SC Meetings, management meetings, preparation of reports and M & E activities. Hiring of Program Assistant in Geneva is ongoing.

Significant progress for Objectives 2 and 3

For Objective 2, completed outputs include the following:

  • The Jaime Delgadillo (OD Consultant) report of January 2012—presented recommendations on the re-organization process and implementation of revised business processes, including updating of existing functions manual, procedures manuals, organizational chart based on an assessment of needs, and production of a debt management regulatory framework.

The report also submitted recommendations to strengthen communication and coordination between the AMS and LMS division as well as overall coordination of debt management functions

However, the BTr has yet to take concrete steps to implement the recommendations of the report, which necessarily should be reviewed in the context of the current requirements of the BTr.

Considered as a positive result of inputs from project CB activities is the creation of 4 new divisions in BTr, namely—under LMS—Capital Market Strategy & Planning Division (CMPSD), Debt Strategy & Planning Division (DSPD), and Risk Management Division (RMD); and under AMS—Funds Management Division (FMD).

  • A number of BTr officials and staff availed themselves of trainings and immersions that aimed to strengthen overall human resource capacity for performing debt and risk management functions. Table 2 below shows a summary of completed training and related activities, by the number of participants.
  • On the need to improve IT service management in support of debt management, the project hired an IT expert. The IT expert is expected to deliver critical project outputs, such as, but not limited to, providing documentation on program routines and interfaces, including revisions done on existing applications; drafting of proposed internal procedures on use of DMFAS 6 and procedural manual on debt information flow, data exchanges and processes; and development of DMFAS-linked programs (eg nROSS and BTMS).

Table 2. Completed training and related activities by number of participants

CB Activity Title of CB/Training Activity No. of Participants[4]
Officials Staff
Debt/Asset Management Training / Seminars, Workshops, Conferences, Fora, etc. 1.       WB Sovereign Debt Mgmt Forum-Washington (2012, 2016) 6 0
2.       WB-VI Government Debt Mgmt Workshop-Vienna (2013 & 2014) 0 3
3.       UNCTAD Debt Management Conference-Geneva (2011, 2013, 2015, 2017) 9 4
4.       WB Debt Management Facility Stakeholders Forum (Belgium 2014, Vienna 2017) 4 4
5.       ADB Public Debt Management Conference-Georgia (2014) 1 4
6.       IMF-AFT Public Debt Management Forum-Paris (2014, 2017) 1 0
7.       Daiwa Capital Markets Conference-Tokyo (2013, 2014, 2016) 4 6
8.       WB-RMPF Gov’t Bond Market Conference-Romania (2014, 2017) 6 1
9.       AdMU Fundamentals of Derivatives-Manila (2013, 2014) 0 12
10.    Bilateral Meetings-Washington (2014) 1 0
11.    WB Debt Management Conference (2014) 2 3
12.    WB Frontiers in Development Policy (2014) 0 1
13.    WB Debt Sustainability Analysis Training-Bangkok (2014) 0 2
14.    CS Fixed Income Training Seminar-Zurich (2014, 2016) 1 2
15.    ICMA Securities Operations Foundations Course-Brussels (2014) 1 0
16.    WB Course on Financial Sector Issues-Washington (2014) 1 0
17.    ICMA Global Master Agreements for Repo and Securities Lending-London (2014) 1 0
18.    WBI Frontiers in Development Policy-Washington (2014) 1 0
19.    Treasury Certification Program (2016, 2017) 2 59
20.    ASEAN Bond Market Forum (2016) 2 1
21.    Modern Asset Allocation & Portfolio Construction (2017) 0 1
22.    Assessing and Managing Risks from CL Workshop (2018) 0 1
Study Missions 1.    Turkey and Hungary (2011) 4 0
2.    Indonesia (2013) 8 2
3.    Czech Republic (2013) 5 1
4.    Brazil and Argentina (2013) 7 3
5.    Turkey (2014) 4 2
6.    Australia (2014) 6 1
7.    Italy (2014) 3 3
8.    South Africa (2017) 2 1
DMFAS/IT Trainings 1.    DMFAS Trainings-Geneva (2013 & 2014) 00 0
·      ToT-Functional-Geneva (2013, 2014) 6 1
·      Basic Functional Training Manila (2016) 1 23
·      ToT-IT-Geneva (2014, 2017) 3 6
2.    Training for BTr-DoF Users-Manila (2013, 2014, 2016) 7 25
3.    Oracle IT Trainings-Manila (2014) 2 23
4.    Debt Statistics Workshop (2015) 1 11
5.    Debt Data Validation Workshop (2016) 1 20
6.    Debt Portfolio Analysis Workshop (2017) 2 25
Total 105 251
Sources: Table 10, Annex 4.3

 

On “Strengthening BTr’s Risk Management and Analysis (“Middle Office”) functions” (Objective 3), the following activities were completed:

  • Contracted Michael Flynn as AM/LM Risk Management Consultant in 2012, who submitted a report that addressed Output Nos. 3.1, 3.2, and 3.3. However, as in the case of the Delgadillo report, the Flynn report also needs to be reviewed. Also, the project provides support for the hiring of a Treasury Risk Management Consultant that can further address Objective 3 Outputs.
  • For debt reporting and analysis functions, the project has purchased Analytica for modeling exercises, as well as contracted Bloomberg for a 1 year subscription of its live feeds.
  • DMFAS’ core capacity building programs—Debt Statistics Workshop, Data Validation Workshop, and Portfolio Analysis Workshop—have been completed. The BTr now produces its “Debt Statistical Bulletins” and conducts periodic data validation exercises, in accordance with its debt data validation calendar. The BTr has been conducting debt portfolio analysis reviews even before the Portfolio Analysis Workshop was conducted.
  • The SC, in separate meetings, has decided to no longer pursue with the hiring of CL and Risk Management Consultants.

 

Significant achievements for Objective 4

Completed activities related to “Strengthening specific Debt Management Functions within BTr” include:

  • DMFAS upgrade from Version 5.3 to Version 6
  • Developed domestic debt data base migration program to DMFAS
    1. One time migration of historical data i.e. up to 30, 2013 was completed
    2. Validation of the migrated data (historical) is on-going (based on Validation Calendar)
    3. Periodic migration is being done after every auction
  • DMFAS 6 functional training for current and new users
  • 2 batches of Training for Trainers (TfT)
  • Technical Training on DMFAS for MISS and DMAD Staff (2014, 2017)
  • Hiring of IT Consultant, who is expected to facilitate completion of pending activities by December 2018.

Highlighted as accomplishment for Objective 4, aside from system upgrade of DMFAS from v5.3 to v6.1, were breakthroughs in debt data migration from existing BTr systems to DMFAS. Specifically, historical data migration, as mentioned above, has been completed; periodic migration, on the other hand, is being done following every auction. Outsourced IT services, as well as Ms. De Guzman’s missions, contributed to the current progress for Objective 4. The system is now able to conduct periodic migration on a regular basis, allowing BTr to automate generation of reports and inter-office linkages through DMFAS, in spite of occasional bugs. For support, linkages for automatic transfer and consolidation of this data in DMFAS are being continually reviewed with DMFAS staff in Geneva.

However, there are a number of key outputs under Objective 4 that need to be completed. As designed, the project intends to deliver these outputs either by project hires or by BTr’s internal MISS staff.

Please see Table 1, above, and Annex 4.2 for more details on status of project outputs.

2.3. Results and Emerging Impacts

The project has contributed to improved debt management capacity both at the organizational and individuals levels.

Improved BTr Debt Management capacity

Improved BTr’s organizational performance in debt and risk management is indicated among other things by reduced debt service payments and the overall boost in the Philippines’ credit risk profile, as shown in Tables 3 and 4, below:

Table 3. Debt Management Targets

Action Required 2013 2014 2015 2016 2017
Targets Actual Targets Actual Targets Actual Targets Actual Targets Actual
a)   Reduce debt service payments (interest payments to revenue) 18.5%-20.1% 18.8% 17.0%-19.5% 11.4% 15.5%-18.5% 14.7% 14.3 to 16.9% 13.8% 12.6 to 15.5% 13.9
b)   Minimize foreign exchange risk by reducing foreign currency denominated debt (as % of total debt) 32.5%-35% 32.5 29%-33.5% 31.6 28.6%-32.6% 32.9% 29.9 to 32.7% 29% 32.5 to 33.9% 33.4%
c)   Minimize refinancing risks by:
·   Minimizing debt maturing in one year (% total) <15% 10% <15% 11.6% <15% 11.1% <15% 10.5% <15% 12%
·   Maintaining average maturity of debt portfolio ≥7 yrs 10.03 yrs 7-10 yrs 9.9 yrs 7-10 yrs 10.04 7-10 yrs 10.05 7-10 yrs 10.08
Source: DMAD; BTr Reports (Research Service, 2014); www.treasury.gov.ph (Statistical Data Analysis Division, 2018); (Research Service, 2016)

Another key indicator, the Debt-to-GDP ratio, showed that this has decelerated to 42.2 percent in 2016 from 44.8 percent in 2015. This was 45.4.5 percent in 2014, a significant drop from 49.2 percent in 2013, the year most project activities have started to gain some traction.

Table 4. The Philippines Sovereign Credit Ratings, 2012-2017

Rating Agencies 2012 2013 2014 2015 2016 2017
Standard and Poors BB+ BBB- BBB BBB BBB BBB
Moody’s Ba1 Baa3 Baa2 Baa2 Baa2 Baa2
Fitch BB+ BBB- BBB- BBB BBB BBB
Notes: (1) For S&P and Fitch, a bond is considered investment grade if its credit rating is BBB- or higher. Bonds rated BB+ and below are considered to be speculative grade, sometimes also referred to as “junk” bonds; and (2), for Moody’s, a bond is considered investment grade if its credit rating is Baa3 or higher. Bonds rated Ba1 and below are considered to be speculative grade, sometimes also referred to as “junk” bonds.
Data sources: Ph Gov’t News (Official Gazette, 2014), (Daang Matuwid-Office of the President, 2014), (DoF News, 2014); Wikipedia.org

While debt management is only one of several factors that contribute to the country’s overall economic wellbeing, the Philippine Government’s recent rating upgrades further boosted BTr’s capital markets development strategy, allowing the government to meet its financial needs at considerably reduced costs (which is the goal of the project, please see Logframe).[5]

Over the years the BTr has favored domestic fund sources over external financing (Table 3). Financial instruments included Treasury Bills and Bonds; in 2016, the BTr issued Retail Treasury Bonds (RTBs), raising additional funding in the total amount of Php 100 billion. For external financing, offshore bond issues came in a mix of currencies (eg, US Dollar, Euro and Yen). In 2016, the Philippines issued by 25-year Global Bond, the first sovereign and longest-dated USD bond issuance from Asia at that point (Research Service, 2016). This year (2018), the Philippines forayed into the Chinese market with a “testing-the-waters” issuance of Panda Bonds.

The country’s stellar execution of its international liability management program has earned for its debt managers the Best Sovereign Issuer Award in 2016.[6] This exemplary performance could be further indicated by the Philippines Credit Default Swap (CDS) levels (see Figure 2, below) where the country is shown to have outperformed other similarly-situated countries (in terms of credit rating).[7] The data show that from being one with the highest relative CDS spreads in 2010, the Philippines rose to become one with the lowest relative CDS spread starting late 2013. The cross sectional order of CDS levels reflects how investors perceive the relative likelihood of each country to default based on the assessment of their macro-market fundamentals, while CDS values across time underlie investor sentiment for the bonds market as a whole. (Francisco, 2015)

Figure 2. The Philippines CDS levels outperform some higher or similarly rated peers

Key results from Capacity Building (CB) activities

As mentioned above, the project shifted its focus and re-aligned a big part of its funds to training and related activities. The aim was to enable BTr to undertake varied and often complex tasks in relation to its newly-aligned cash, debt and risk management responsibilities, and to better deliver on its evolving mandate. Sending BTr officers and staff to local and international trainings/workshops on cash, debt, risk management, IT and capital market development, various conferences/fora/exposure trips, etc. contributed to the upgrading of the knowledge, skills and capacity of BTr staff, to which much of BTr’s improved organizational performance can be attributed.

BTr as an institution has benefitted from projected-supported human capital upgrades, and has accomplished CB objectives that resulted in the following:

  1. Improved BTr Organizational Structure and Retooling

Informed by insights and ideas gained from project-supported trainings and expert advice, the BTr created 4 new divisions, 3 of which are subsumed under the Liability Management Service (LMS).  The Capital Market Strategy & Planning Division (CMPSD) was created to strengthen BTr’s  capital market development operations in order to make the country at par with its ASEAN counterparts,  the Debt Strategy & Planning Division (DSPD) is tasked to formulate the Bureau’s medium-term debt management plans and policies and to develop strategic benchmarks using appropriate debt indicators and econometric tools while the Risk Management Division (RMD) will be responsible for developing the Bureau’s risk management framework that will identify and address the risks inherent in Treasury operations.

The other unit, namely, the Funds Management Division (FMD) provides support to the Public Financial Reform Program of the government, particularly the implementation of the Treasury Single Account (TSA) and the management of the government and the bond sinking fund (BSF) portfolios. Moreover, just like the function of Treasuries in banks, the FMD is also mandated to engage in full time trading to augment National Government (NG) funds.

  1. Strengthened Risk Management and Strategy Formulation Capacity

The project-supported software, Analytica, has given the BTr a platform for robust debt analysis and the interrelationships among macro-economic variables. Using tier hierarchy and its focus on connections that are very helpful in debt sustainability analysis, Analytica simplifies and improves on spreadsheet-based analyses.  Highly beneficial for BTr’s needs, the software is user-friendly and equipped with intuitive features; it boosts modelling given its suitability to dynamic studies with its capacity to handle stochastic variables and probability distributions.

BTr’s financial modelling activities benefitted from insights on—

  1. How to improve surveillance on the preference of market participants when it comes to where to invest and how to improve technical capacity with regard to currency forecasting, market reading, and risk management for fixed-income portfolios (Fixed Income Training).
  2. How to better understand the global financial market crises and ensure that they are not repeated. It enabled BTr to broaden its perspectives on policy-making that aims to maintain a balance between capital market considerations and the external macro-economic environment (Course on Financial Sector Issues).
  3. How to quantify risk exposures using in-house stochastic models which are more sensitive to local contexts, specifying likely vulnerabilities and channels in which risks are associated, instead of using deterministic models for DSA and MTDS.

With the software and data available from all sources, such as DMFAS and Bloomberg, etc., the BTr’s capacity to evaluate central government debt and its manageability via-a-vis other conditions that are not entirely in the hands of debt managers has been strengthened. Conditions have been established where the BTr can adjust to, prepare and buffer against unexpected scenarios such as calamities, policy changes and tweaks in both the domestic and global market environments.

The Debt Sustainability Analysis (DSA) training enabled the BTr to use the DSF tool to effectively analyze NG indebtedness.  Applying projections and assumptions, BTr evaluates debt sustainability covering both external and domestic debts. The tool allows users to observe the effects of hypothetical assumptions on the debt portfolio, and to derive possible best and worst-case scenarios. Increased inputs for selected BTr staff have been facilitated with the conduct of Debt Portfolio Analysis (DPA) Workshop in 2017.

  1. Improved Debt Management Performance Due to Strengthened Structures for Development of Capital Markets

Complementing BTr’s knowledge base on capital markets are the study visits to the debt offices of Indonesia, Italy, Brazil, Argentina and Czech Republic, among other host countries, as well as participation in various Debt and Bond Market Conferences, Fixed Income and Securities Operations Workshops as well as specialized trainings on Repo and Derivatives.

The insights and skills gained from the above project-supported trainings have provided BTr with opportunities to pursue more capital market initiatives/reforms to promote efficiency in both the primary and secondary markets for government securities (GS). This included the establishment of an accreditation framework for a special segment of committed market makers who provide price liquidity to all market participants. The Primary Dealers, side by side with the investors in the market place, promise a synergy and dynamics that will sustain the supply and demand interplay in GS for a sustainable market structure. In addition, BTr has been contemplating of offering new types of debt instruments to boost liquidity in the secondary market such as inflation linked bonds and reviving the repo market. Moreover, BTr is also looking at the possibility of entering into derivative transactions as a risk management measure to hedge the NG from potential liquidity and market risks.

In 2016 and 2017, the project supported a Bankers Association of the Philippines-sanctioned in-house training on Treasury Certification Program (TCP) for key officials and staff of the BTr. This further enhanced the participants’ knowledge and skills in relation to money and foreign exchange markets.

Improved Treasury and Cash Management Operations

The BTr has successfully implemented the Philippine Government’s Treasury Single Account (TSA). The milestone has been considered as “significant in the government’s efforts to improve public financial management.”

The study visit in Australia further enhanced the BTr’s perspectives on the operation and management of the TSA. It exposed the BTr to practices on how funds are swept to the Official Public Account, which is the Australian counterpart of the Philippines TSA. It thus facilitates a more informed borrowing strategy since cash balances are easily determined. Also, the Australian model can be applied to the BTr’s TSA to further enhance the latter’s inter-agency coordination, as well as its operational and institutional arrangements. Moreover, knowledge gained from the said exposure visit helped the BTr craft a Public Financial Management (PFM) statute that is expected to provide clear guidelines on the mandate of the Treasury.

Enhanced Information Generation and Reporting Capacity

The IT Training inputs, supported by previous UNCTAD IT Missions as well as outsourced IT Services (Incuventure Partners Corporation), enabled the BTr to link DMFAS with its in-house system, IMAS-B, and to establish a consolidated debt database, allowing the BTr to generate and disseminate timely reports for debt service projections, debt analysis, risk management, and provide financial gauge on the external and domestic debt exposure of the NG. Recent improvements included securities and operations data generated from DMFAS links with nROSS and BTMS, further facilitating management of NG debt.

As a result of DMFAS trainings, improvements in DMFAS operations are indicated by the following:

  1. Data Validation Queries are now being used as part of data verification of each loan account. This has improved and/or added reliability to the data released by DMAD.
  2. The application of closing date is now being implemented. The closing date freezes the data at a given cut-off date. This made the replication of backdated reports possible because the adjustments and/or updates made after the set closing date are excluded when generating user defined reports using the Standard Query Language (SQL) or data Browser, thus providing the same data for a specific reporting period.
  3. BTr participants learned to perform sensitivity analysis using Exchange Rate and Interest Rate Scenarios to derive debt service projections covering x number of years.

Related to improved information generation capacity are project-supported provision of hardware (Bloomberg terminals) and outsourced live information feeds, such as Bloomberg subscription, which allows the BTr to access real-time data on daily financial market updates on yields of local currency bonds, sovereign debt issues of ROP, US Treasuries, stock market, FX market, etc.

The Oracle trainings enabled the MISS to provide robust IT support for BTr debt management operations. Essential support being provided includes maintenance of IT systems, especially DMFAS, and timely response to requests for IT-related assistance from various divisions of the BTr.

Emerging impacts on proficiency levels of individual staff

Technically proficient staff members become sources of competency for the rest of DMFAS users in BTr. BTr staff who have undergone DMFAS Training for Trainers have successfully conducted re-echo trainings for BTr DMFAS users. Training evaluation results showed that training objectives were achieved and that participants found the trainings helpful in raising their knowledge and skills levels (please see Annex 4.3). This, among other things, indicated increased levels of proficiency not only for advanced users but also for basic users in BTr.

Training reports also indicated that staff performance has improved as a result of the individuals concerned having benefitted from attendance in project-supported trainings (please see Annex 4.4).

2.4. Implementation Challenges

Project implementation has encountered several challenges. These included:

  • Changing priorities in BTr. As mentioned in Part 1.3, above, the mandate of BTr evolved overtime that required it to invest more resources in inter-agency programs under the broad umbrella of Public Finance Management (PFM) of the national government. Support for systems like the Treasury Single Account (TSA), the Treasury Management System, and the Government Integrated Financial Management Information System (GIFMIS) which was initially part of project outputs, was later assumed by other BTr projects, in turn prompting scaling down of project scope. The shift also required BTr to hire a select group of technical personnel whose competency levels rendered redundant the hiring of project consultants. Eventually, project focus turned to further enhancing the skills of BTr personnel through trainings and related capacity building activities.
  • Staffing gaps at the start of project implementation. Implementation at the start of the project was slow due largely to delays in hiring of project staff and allocation of personnel by BTr. For example, although the SC has decided to hire a Senior Adviser and National Project Officer as early as June 2012, these key project staff members joined the project only in April 2013 and March 2013, respectively.
  • The sub-project teams have also expressed concern that most BTr units are undermanned, and hence it was difficult to assign persons to these project teams. Compounding the problem was the fact that BTr had several projects running at the same time, and were also competing for inputs from the workforce.
  • High turn-over of personnel, considered as major project assumption and risk (Logframe). A good number of BTr personnel who benefitted from project-supported trainings has left for assignment in other agencies. Although mitigated, from a broader perspective, by the fact that most of these transferees have remained in government service, this setback has negative effects on the capacity building gains achieved so far by the project.
  • On IT (Objective 4), some activities cannot proceed unless works on other BTr systems are completed. Example is the nROSS, which is being developed by an outsourced consulting firm. Completion of DMFAS links to nROSS is dependent on the progress of works on the latter.

Part 3: On-going and Pending Activities (2018)

A number of project outputs, particularly under Objective No. 2, Output No. 2.3 (Strengthened overall HR capacity for performing debt and risk management) and Objective No. 4 (To strengthen specific debt management functions within the Btr) still need to be carried out and completed. Table 4 below presents a summary of uncompleted outputs and pending activities, and summary of completion plan:

Table 5. Summary of ongoing and/or pending activities, completion plan

Project Outputs On-going/Pending Activities Completion Plan
How By whom When
2.2 Recommendations on strengthening communications and coordination on debt management in the overall context of Asset and Liability Management ·      Cash Flow Committee meetings Ongoing; conducted regularly BTr 2018 onwards
2.3  Strengthened overall HR capacity for performing debt and risk management Training activities for 2018 Per Training Plan (Annex 4.7) BTr, UNCTAD 2018
2.4  Improved IT service management in support of debt management IT training activities for 2018 Per Training Plan (Annex 4.7) BTr, UNCTAD 2018
3.1  Improved treasury risk management functions in support of debt management Training activities for 2018 Per Training Plan (Annex 4.7) BTr, UNCTAD 2018
3.2  Improved debt reporting and analysis functions Training activities for 2018 Per Training Plan (Annex 4.7) BTr, UNCTAD 2018
3.3  Strengthened contingent liability management for Treasury functions Training activities for 2018 Per Training Plan (Annex 4.7) BTr, UNCTAD 2018
3.4 Improved cash management in support of debt management Training activities for 2018 Per Training Plan (Annex 4.7) BTr, UNCTAD 2018
4.3  Improved accuracy, reliability and timeliness of data recording & reporting ·   Documentation on program routines and interfaces, including revisions done on existing applications.

·   Drafting of proposed internal procedures on use of DMFAS 6 and procedural manual on debt information flow, data exchanges and processes.

Report writing, coordination with MISS staff and BTr consultants IT Consultant; BTr

(Note: Pending activities shall be undertaken by BTr when IT expert is hired by BTr.)

April-December 2018
4.5  Streamlined and improved information flows, processes and data exchanges DMFAS-linked programs (eg nROSS and BTMS) Programming, coding, beta testing
Source: Table 1, Annexes 4.1-5, Work Plan

3.1.    Progress on Agreements Reached At the last Steering Committee Meeting

Table 6, below, shows the agreements reached during the 21 February 2018 Steering Committee meeting and the corresponding progress/status of their accomplishments.

Table 6. Summary of Agreements and Progress of Accomplishments

Agreements Progress
1)       Activity Plan focused on a list of training activities for 2018, with corresponding timetable and cost estimates. This plan, which was included as one of the annexes of the Progress Report, was approved by the PSC, subject to revision that would include such details as to how the activities are going to be completed, by whom and when. The PSC directed the NPO to draft the revision. The Activity Plan has been integrated into this report as part of the Consolidate Work Plan (Annex 4.2).
2)       On organization restructuring/redevelopment for BTr, TOP De Leon mentioned that BTr is working on its competency framework, which can help rationalize and provide focus on its staff development inputs. Ongoing
3)       The PSC also agreed to extend the project to December 31, 2018. Draft of project extension document under review.
4)       On end-of-project evaluation, the PSC agreed a joint evaluation by BTr and UNCTAD. For follow up.
Source: Annex 4.1

 

3.2. Financial Status

The total budget of USD 3,620,585 for the project was received on 25 March 2011. The outstanding balance of USD 4,908.72 in the preparatory project: Capacity Building in Debt Management within the Bureau of the Treasury of the Philippines (PHI/0T/9BI) was transferred to this project, as per letter from Treasurer of the Philippines dated 9 May 2012.  Interest and other adjustments amounted to USD 81,608.85; total expenditures in 2014 amounted to USD1,960,491.37 (inclusive of DMFAS license fee of USD 50,000, maintenance fees of $5,000 for DMFAS 5.3 in 2013 and $15,000 for DMFAS 6.0 in 2014), making the total amount available of USD 3,652,376.46 by end of December 2014.

Total expenditures amounted to USD 474,955.60 in 2015, USD171,624.58 IN 2016, and USD56,254.40 in 2017.

The amount of USD 1,024,723.66 is estimated to be available in 2018, which is more than enough to support completion of pending activities. Please see Table 7 below for more details.

Table 7. Summary of Income and Expenditures, 2011-2018 (in USD)

2011-2014 2015 2016 2017 2018 (Actual & Projected)
INCOME
Contributions 3,625,493.72 1,706,701.26 1,237,441.93 1,081,423.85 1,039,271.36
Interest 81,608.85 7,449.18 12,391.94 14,516.73 0.00
Other Adjustments -54,726.11 -1,752.91 3,214.56 -430.79 -25.13
Total 3,652,376.46 1,712,397.53 1,253,048.43 1,095,509.79 1,039,246.23
EXPENDITURES
Staff Personnel 891,844.29 414,725.02 80,134.67 151,018.12 150,000.00
Travel/Training 683,754.22 -47,611.23 19,187.51 37,766.39 360,587.93
Contract Service/Sub-contracts 114,425.80 -102,575.79 504.37 -82,370.82 50,000.00
Operating Costs/Miscellaneous 8,364.68 22,466.32 33,178.28 -56,679.45 10,000.00
Equipment, Furniture 36,559.08 134,463.86 17,820.00 0.00 0.00
Program Support 225,543.30 53,487.42 20,799.75 6,504.19 5,000.00
Total 1,960,491.37 474,955.60 171,624.58 56,238.43 575,587.93
FUND BALANCE 1,691,885.09 1,237,441.93 1,081,423.85 1,039,271.36 463,658.30
Source: Financial Statements, Work Plan

 

3.3. Exit Strategy

Aside from completion of pending activities, the targeted end of project by December 2018 requires adoption of a phase-out strategy to sustain and further build on the gains that have been achieved so far. The strategy has 3 main components:

  1. Project Evaluation

UNCTAD and BTr shall jointly conduct end of project evaluation two to three months before actual termination of project activities. Copies of the evaluation reports shall be shared with interested UN and Philippine government agencies, including audit agencies.

  1. Transition inputs

A BTr staff shall be adequately oriented on project activities and operational procedures at least three months before end of project. This shall ensure among other things the proper turn-over of project records, digital and physical assets.

  1. Institution Building

To institutionalize debt management structures introduced by the project, the existing governance committee / structure shall be reformed to constitute debt management committees, such as Debt Data Validation Committee, Debt Statistics Committee, and Debt Portfolio Review Committee.

  • Change Management

The HRMD shall pro-actively apply, based on a comprehensive OD Plan, approaches like job rotation, placement and staff development to address foreseen shortage of qualified personnel due to resignation, transfer, or retirement. Particular focus should be on MISS staffing in relation to input needs of DMFAS and other systems of the BTr. The IT Expert contracted by the project to support the DMFAS operations should be considered for eventual absorption by BTr as a regular staff member.

  • Retention and Retooling

In the interest of retaining qualified personnel, especially those who perform debt management functions at a high level and who have undergone trainings supported by the project, should be provided with adequate incentives (such as promotion or upgrading of salary scale) to encourage them to build their professional career at the BTr.

  • Pool of Trainers

The BTr shall include in its HR/OD Plan an enabling strategy for the establishment of a pool of trainers for each program area that is related to the broader areas of debt management, asset management, and treasury operations.

  • Government-wide Sharing of Information

The BTr shall develop knowledge management products on debt management to be shared with internal and external stakeholders (other government agencies and the private sector). These products would include the monthly publications produced by the debt management committees.

 

Part 4: Annexes

    • Minutes of PSC Meeting (21 February 2018)
    • Project Document Amendment
      • Revised Committees for Project Governance
      • Revised Project Logframe
      • Consolidated Work Plan
      • Proposed Training Activities for 2018
      • Project Expenditure Summary (Actual and Projected: 2011-2018)
    • Completed Training Activities

 

Annex 4.1: Minutes of PSC Meeting (21 February 2018)

 

Strengthening Debt Management in the Bureau of the Treasury (BTr), Philippines

(PHI/0T/ABK)

MINUTES OF THE SIXTEENTH PROJECT STEERING COMMITTEE (PSC) MEETING

21 February 2018, 16:00 – 17:00 Manila Time, OTOP Boardroom, BTr Philippines | 9:00 – 10:00 Geneva Time, Conference Room E.9055-59/UNCTAD, by Polycom

A)       ATTENDEES      
Steering Committee Office Designation
1)       Rosalia B. De Leon
Treasurer of the Philippines
BTr Chair
2)       Gerry Telling
Chief, DMFAS Programme
UNCTAD Member
3)       Atty. Erwin D. Sta. Ana
Deputy Treasurer of the Philippines
BTr Member
4)       Atty. Gisela F. Lood

Deputy Treasurer of the Philippines

BTr Member
Other Attendees:
5)       Manuela Jander UNCTAD Project Manager
6)       Nanette C. Diaz BTr Director, Liability Management Service
7)       Dominick Mariano BTr Director, Research Servie
8)       Irene A. Jonson BTr Chief, DMAD
9)       Hermilando D. Aberia UNCTAD National Project Officer
B)       AGENDA      
1)       Brief review of progress report

2)       Review of pending activities/activity plan

a.     Hiring of program/admin assistant in Geneva

b.     Training activities for 2018

c.     Study Missions (Belgium, Ireland, Mexico)

3)       Bangladesh study mission in Philippines

4)       Other matters

C)       PROCEEDINGS
1)       TOP Rosalia De Leon, presiding, called the meeting to order at 14.15. She requested Manuela Jander to facilitate the meeting.
2)       Ms. Jander read the provisional agenda and requested its approval by PSC members present. The PSC adopted the proposed agenda.
3)       Ms. Jander discussed the progress report, highlighting activities completed in 2017 as well as pending activities that need to be completed in 2018:

·         UNCTAD hired a part-time Program Assistant.

·         Project also hired IT Consultant for BTr.

·         At least 10 training activities conducted/completed.

·         Activity Plan focused on a list of training activities for 2018, with corresponding timetable and cost estimates. This plan, which was included as one of the annexes of the Progress Report, was approved by the PSC, subject to revision that would include such details as to how the activities are going to be completed, by whom and when. The PSC directed the NPO to draft the revision.

·         On organization restructuring/redevelopment for BTr, TOP De Leon mentioned that BTr is working on its competency framework, which can help rationalize and provide focus on its staff development inputs.

4)       On end-of-project evaluation, the PSC agreed a joint evaluation by BTr and UNCTAD.

5)       The PSC also agreed to extend the project to December 31, 2018.

Annex 4.2: Project Document Amendment

Amendment to the Project Document for Technical Cooperation Project: STRENGTHENING DEBT MANAGEMENT IN THE PHILIPPINES (PHI/OT/ABK)[8]

  1. Introduction/Rationale

In December 2010, the Bureau of the Treasury (BTr) and the United Nations Conference on Trade and Development (UNCTAD) signed the project document for the “Strengthening Debt Management in the Bureau of Treasury” which aimed, among other things, to strengthen the BTr’s ability to perform its debt management functions.

Initially planned for three years, project implementation started in March 2011 and will end in March 2015 after a 1-year no-cost extension.

The project has 4 objectives and 25 outputs, namely:

  1. To implement a planned, managed, monitored and evaluated project
    • A detailed project work plan and established governance structure
    • An effectively managed, monitored and evaluated project
  2. To improve institutional arrangements within BTr and build overall human and technical capacity in support of debt management
    • Improved organizational structure, regulatory framework and performance measurement in support of debt management
    • Strengthened Asset and Liability Management
    • Strengthened overall HR capacity for performing debt and risk management
    • Improved IT service management in support of debt management
    • Improved IT infrastructure and equipment to support debt
    • Improved disaster recovery of debt management systems
    • Strengthened financial systems architecture for debt management
    • Improved website and content delivery
    • Electronic Document Management and Automated worksflows are in place
  3. Strengthening BTr’s Risk Management and Analysis (“Middle Office”) functions
    • Improved treasury risk management functions in support of debt management
    • Improved debt reporting and analysis functions
    • Strengthened contingent liability management for Treasury functions
  4. Strengthening specific Debt Management Functions within BTr
    • Upgrade of DMFAS system from Version 5.3 to Version 6
    • Consolidated data base of foreign and domestic debt
    • Improved accuracy, reliability and timeliness of data recording & reporting
    • Strengthened data reporting and analysis
    • Streamlined and improved information flows, processes and data exchanges

In its meeting on 12 April 2013, the Steering Committee, having considered the overlapping of several on-going projects within BTr, downscaled the project scope and dropped 5 outputs under Objective No. 2, specifically the following:

  1. Output No. 2.5: Improved IT infrastructure and equipment to support debt
  2. Output No. 2.6: Improved disaster recovery of debt management systems
  3. Output No. 2.7: Strengthened financial systems architecture for debt management
  4. Output No. 2.8: Improved website and content delivery
  5. Output No. 2.9: Electronic Document Management and Automated workflows are in place

In its meeting on 10 December 2013, the Steering Committee re-adopted three of the five outputs that were earlier dropped, namely:

Output No. 2.5: Improved IT infrastructure and equipment to support debt—for support of TSA through financing part of the system;

Output No. 2.7: Strengthened financial systems architecture for debt management—for support to the procurement of a TMS Module; and

Output No. 2.8: Improved website and content delivery.

Expressed through exchange of correspondence, the BTr and UNCTAD further saw the need to reconsider previous decisions. Support for TSA, TMS and website re-development would no longer be pursued.

The Steering Committee further decided to forego the hiring of the following project consultants:

  • Debt Management Expert (Outputs 2.g, and 4.c);
  • Cash Management Expert (Output 3.d)
  • Senior Adviser (Output 1.2)

The Committee agreed to use the funds freed up from non-hiring of above-mentioned experts to support training and related activities.

  1. Amendments to the Original Project Document

Pursuant to provisions on revisions under Contractual Arrangements of the Project Document, both the BTr and UNCTAD hereby agree to adopt the following amendments:

  • Hiring of the following experts under Output No. 2.g, 3.d, and 4.c as described in the Project Document will no longer be pursued:
    1. Debt Management/Treasury Management System Expert (Output No. 2.7)
    2. Cash Management Expert (Output No. 3.4)
    3. Treasury Risk Management Consultant (Output 2.2)
  • Project Output Nos. 2.5-2.9 are hereby cancelled.

3)    Revised Composition of Governance Structure

The proposed new composition of Governance Structure is presented in 4.2.1.

  1. Logframe and Work Plans

Existing Logframe and work plans will be revised to reflect the foregoing amendments, including the corresponding budgets for planned activities such as trainings and workshops. The approved revised Logframe, which shall specify performance indicators for training and related activities, and workplans shall be attached to, and shall form an integral part of, this document.

(The updated Logframe is attached as Annex 4.2.2; Draft 2015-2016 Work Plan is attached as Annex 4.2.3 2011-2016 Work Plan is attached as Annex 4.2.4; proposed training activities for 2015 is attached as Annex 4.2.5; Project Expenditure Summary is presented as Annex 4.2.6.)

  1. Project Extension

On-going activities, such as IMAS B Enhancement, as well as contracting of IT and Contingent Liability Experts, are expected to go beyond the duration of project life which will end on 31 March 2015. To ensure that all planned project activities are completed, the project is hereby extended until 31 March 2016, subject to availability of project funds.           


ANNEX 4.2.1: REVISED COMPOSITION OF PROJECT GOVERNANCE STRUCTURE (PROPOSED)

Steering Committee      
Chair TOP Roberto B. Tan  
Members Gerry Teeling – DMFAS Chief
DTOP Gisela Lood, DTOP Sharon Almanza
Sub-Project Teams Coordinator SP Team Chief Members
SPT1-Debt Management Atty. Erwin Sta. Ana Dir Ma. Nanette C. Diaz Irene Jonson, Dennis Landicho, Edna Bona, Florecita Tuazon, Arturo Trinidad, Marites Masarap, Amor Daiz, JK Trinidad
SPT2-Treasury Risk Management DTOP Sharon Almanza Dir Dominick Mariano Atty. Dennis A. Madrigal, Amparo S. Abad, , Carol D. Jorge, Ms. Elizabeth P. Awayan, Kenneth Ian Francisco, Mon Condino, JC de Leon
SPT3-Asset Management DTOP Sharon Almanza Dir Marcela S. Salazar Ed Marino, Maritess Aguinaldo, Florence B. Almadrigo, Avelina H. Zumarraga, Atty. Tyrone Brotarlo, Edith Anievas, Nikkie Pacheco, Ciara Comprendio
SPT4-OD and HR  Development DTOP Gisela F. Lood OIC Dir Raymundo U. Tan Atty. Jojo Beluso, Atty. Ma. Victoria Yambao-Patinio, Norma Abelgas, Elenitha Bobis, Rafael Carreon, Mary Ivi Frades
SPT5-ICT Development DTOP Gisela F. Lood OIC Dir Regilito Tamayo Wilfredo L. Yatco, Glenn M. Romero, Howell Honor, JR Adriano, Jico Oracion, Lara Aduna, Maureen Espina, Kristine Karen Mahinay
Secretariat: Head – NPO; Members: Myrna dela Cruz, Jacqueline Santiago

 

ANNEX 4.2.2: PROJECT LOGFRAME

Narrative Summary
Indicators Means of Verification Assumptions and Risks
General Objective:
To strengthen the BTr’s debt management operations in support of the government’s thrust of reducing the level and cost of its borrowings to sustainable levels in order to create fiscal space to fund its vital programs and services. 1)       Improvement of long-term key debt indicators

2)       Positive trends in long-term grading by credit rating agencies

3)       Decrease in cost of borrowings

·      Progress Reports

·      Project Evaluation Reports

 

Objectives:
1)       (To implement a planned, managed, monitored and evaluated project) By EO Project, BTr is characterized by the following:

•   advanced user of DMFAS;

•   successfully incorporated securities into the DMFAS database and developed applications to routinely update the DMFAS database;

•   has strong IT units;

•   has developed linkages of IT systems with DMFAS, and are linking DMFAS with the integrated financial management systems;

•   has modern debt management structures, with clear division of responsibilities along the lines of front, middle and back office; and

•    has stable, well trained staff.

·      Progress Reports

·    Steering committee minutes

·    Lists of trainees

·    Reports of training activities

·      Supportive IT environment in BTr;

·      Minimum turn-over for trained staff

·      Government committed to implement recommendations of reports.

·      Duplication of or inconsistencies with other developments within the PFM reform agenda

·      Changes made to project can be implemented and on time.

2)       To improve institutional arrangement within BTr and build overall human and technical capacity in support of debt management
3)       Strengthening BTr’s Risk Management and Analysis (“Middle Office”) Functions
4)       Strengthening specific debt management functions within BTr
Outputs:
1.1  A detailed project work plan and established governance structure ·      Annual work plans approved and implemented

·      Treasury Office Order issued and implemented

·      Progress Reports

·      Steering Committee minutes

·      Budget is able to cope with unforeseeable exogenous factors, such as exchange rate fluctuations or increase in travel costs;
1.2  An effectively managed, monitored and evaluated project ·      Project office established

·      1 end-of-project independent evaluation conducted

2.1  Improved organizational structure, regulatory framework and performance measurement in support of debt management ·      BTr org’l structure aligned with international best practices, taking into account functions critical to DMO

·      Regulatory framework adopted; Revised Business Process implemented

·      Performance Evaluation System exist and in use

·      Progress Reports

·      Mission Reports

·      Qualified personnel

·      Relevant staff available for training;

·      The rotation of trained personnel is limited.

·      Government committed to implement recommendations of reports.

2.2   Recommendations on strengthening communications and coordination on debt management in the overall context of Asset and Liability Management ·     Consultant’s reports accepted

·     ALM Committee in place and meeting regularly

2.3   Strengthened overall HR capacity for performing debt and risk management ·     Debt and risk management functions/positions defined in Rationalization/Reorganization Plan; 3-year CD program developed

·     Skill gaps analysis conducted; at least 50% of personnel in debt and risk management functions trained

·     Training documentation and reports are submitted to ensure that activities contribute to achievement of project objectives

·      Progress Reports

·      Mission Reports

·      Training reports

·      Budget is able to cope with unforeseeable exogenous factors, such as exchange rate fluctuations or increase in travel costs

·      BTr staff are available for training

2.4   Improved IT service management in support of debt management ·      BTr IT Help Desk in place

·      Strengthened data sharing among BTr divisions

·      Progress Reports

·     Mission Reports

·     High retention of IT staff

·     Supportive IT environment

3.1   Improved treasury risk management functions in support of debt management

 

·      Treasury risk management framework is in place by EO Project

·      Treasury risk management middle office is created, and its structure and functions defined and in place by EO Project

·      Skills gaps for Treasury risk management identified and personnel recruited/trained by  EO Project

·      Initial identification of risk exposure of BTr has been conducted and documented by EO Project

·      Risk Register of the BTr is in place by EO Project

·      Progress Reports

·      Mission Reports

·      Training Reports

 

·      Proper computer maintenance and regular back up of the database.

·      Relevant staff available for training;

3.2  Improved debt reporting and

analysis functions

·      At least 1 related training conducted ·      Progress Reports

·      Mission Reports

·      Training

·      Reports

3.3  Strengthened contingent liability management for Treasury functions ·      Scope of contingent liabilities and its impact on BTr’s debt projections, cash forecast and analysis are determined by EO Project

·      Contingent Liability data collection policy/ procedures in place and being implemented by EO Project

·      BTr has contingent liability database by EO Project and analysis of such liabilities are being undertaken regularly

·      The rotation of trained personnel is limited.

·      Government committed to implement recommendations of reports.

·      Contingent liability expert recruited.

3.4  Improved cash management in support of debt management ·      Reduced borrowing and “carry” costs on Bond Sinking Fund contributions

·      Reduced debt stock due to reduction on BSF contributions

·      Maximized yield on investment

·      Cash is available to pay for government debt when due

·      Strengthened short-term calculation of cash availability

·      Timely and accurate payment of debt

·      Reduced average operational cash balances to minimum level which translate to borrowing only when needed at minimum cost

·      Progress Reports

·      Mission Reports

·      Training Reports

·     Correct technical environment within BTr; Absorptive capacity of BTr to implement the project;
4.1  Upgrade of DMFAS system to Version 6 ·     System is installed and operational; subsequent upgrades insta lled; availability of a written and formalized internal procedures on use of DMFAS 6

·     Linked to various user units within BTr

·      Progress Reports

·      Mission Reports

·      Training Reports

·      DMFAS reports

·     Retention of technically trained staff
4.2   A consolidated data base ·     Data from ADAPS exported to IMAS-B

·     Data  migration from IMAS-B to DMFAS

·     Periodic data migration running on a weekly basis

·     DMFAS able to produce consolidated reports by 2014

4.3  Improved debt information flows and data exchange ·     Exchange of debt information among BTr divisions and other government agencies 75% accurate and comprehensive

·     Data flows streamlined and at least 50% automated

·      Progress Reports

·      Mission Reports

Transfer of knowledge in case of staff replacement
4.4 Debt data validation and training ·     Historical data validated by 2014 and periodic data validated after every auction

·     At least 1 data validation training conducted

·      Progress Reports

·      Mission Reports

Transfer of knowledge in case of staff replacement
4.5  Customized data reports and linked excel worksheets templates from DMFAS and other BTr systems ·     Reports produced immediately in the desired formats

 

Annex 4.2.3: Consolidated Work Plan
Objectives Outputs Activities/Tasks Timeframe Responsibility Center Status
1)       To implement a planned, managed, monitored and evaluated project 1.1  A detailed project work plan and established governance structure 1.1.1  Elaboration of a detailed, phased/ sequenced and comprehensive project management workplan, including logframe, calendar of activities, allocation of financial resources and terms of reference of external experts required for the project 2015-2016 UNCTAD, BTr Completed
1.1.2  Establishment of a clear governance and operational structure for the project clearly defining lines of responsibility and communications, including the setting up of a Project Steering Committee or working group 2015-2016 UNCTAD, BTr Completed
1.2  An effectively managed, monitored and evaluated project 1.2.1  Recruit Chief Technical Advisor (Senior Advisor), National Project Officer and Administrative and Finance Staff 2013 UNCTAD, BTr Completed
1.2.2  Develop Project Management Plan, including scope baseline, work breakdown structure and schedule, quality and risk management plan, and procurement plan 2015-2016 SP Teams, SA, PM, NPO Completed
1.2.3  Monitor and control project activities, including controlling changes 2015-2018 SP Ts, SA, PM, NPO Ongoing
1.2.4  Communicate project progress to stakeholders 2015-2018 SP Ts, SA, PM, NPO Ongoing
1.2.5  Manage quality and risks 2015-2018 SP Ts, SA, PM, NPO Ongoing
1.2.6  Manage procurements 2015-2018 SP Ts, SA, PM, NPO Ongoing
1.2.7  Facilitate project reviews and evaluations 2015-2018 SP Ts, SA, PM, NPO Ongoing
2)       To improve institutional arrangement within BTr and build overall human and technical capacity in support of debt management 2.1   Recommendations on strengthening communications and coordination on debt management in the overall context of Asset and Liability Management (ALM) 2.1.1   Review and recommend means to strengthen communication and coordination between the AMS and LMS division as well as overall coordination of debt management functions 2015-2016 SPT2 Completed
2.1.2  Develop ALM Committee mandate and agenda, as well as recommend structure (Explore the possibility of the creation of an ALM committee with Senior Management (via Treasury Office Order) who will regularly meet and make proposals/ recommendations for better management/matching of assets against liabilities) 2015-2018 SPT2 Completed (Cash Flow Committee)
2.2   Strengthened overall HR capacity for performing debt and risk management 2.2.1   Recruit Treasury Human Resource Development Consultant Jan-Mar2015 UNCTAD, SPT4 Dropped
2.2.2   With the end in view of upgrading BTr’s HR Profile, assess existing competencies, and understand BTr’s skills requirements for debt and risk management. This will require– 2015-2016 BTr Dropped (Transferred to BTr)
2.2.3   Developing a comprehensive 3-yr HR Development Plan and, after conducting a TNA, propose a training programme that may include international and local training, workshops and seminars, e-courses, etc. Apr-Jul 2015 BTr Dropped (Transferred to BTr)
2.2.4   Identifying and develop alternative HR development schemes, including fellowships, attachments, and internships Apr-Jul 2015 BTr Dropped (Transferred to BTr)
2.2.5   Managing training programs, including arranging UNCTAD workshops, external courses, international study tours, workshops & e-learning programs and provide policy advise 2013-2018 UNCTAD (NPO, PM, Admin), UNDP, BTr Ongoing (Please see Annex 4.2.4 below)
2.2.6  Adopting and implementing a holistic competency development plan Apr-Jul 2015 BTr Dropped (Transferred to BTr)
2.3   Improved IT service management in support of debt management 2.3.1  Develop Service Level Agreement (SLA) for IT Help Desk Functions Feb-Dec 2015 BTr Dropped (Project Amendment)
2.3.2  Identify and contract with external service provider for delivery of IT Help Desk Functions Jan 2015 IT External Service Provider, SPT5 Dropped (Project Amendment)
2.3.3  Determine and implement data sharing needs between/among BTr divisions Feb-Dec 2015 IT External Service Provider, SPT5 Dropped (Project Amendment)
2.3.4.  Design and arrange workshops on “groupware” activities, such as the use of email, shared resources, intranets, etc. Feb-Dec 2015 IT External Service Provider, SPT5 Dropped (Project Amendment)
2.4   Improved IT infrastructure and equipment to support debt management 2.4.1  Identify BTr’s ICT hardware and infrastructure needs for improved debt management (Bloomberg and Analytica) 2015-2016 SPT2, SPT3 Dropped (Project Amendment)
2.4.2  Manage procurement and implementation of  equipment 2015-2016 SPT2, SPT3 Dropped (Project Amendment)
2.4.3  Design and arrange training programs for BTr staff, as necessary, for new equipment and software 2013-2018 UNCTAD, BTr Ongoing
3)       To strengthen BTr’s Risk Management and Analysis (“Middle Office”) functions 3.2   Improved debt reporting and analysis functions 3.1.1   National workshop on Debt Statistics 2015 DM Experts, SPT1, UNCTAD, SPT2 Completed
3.1.2   Produce the BTr’s “Debt Statistical Bulletin” 2018 SPT1, UNCTAD, SPT2 Ongoing
3.1.3   National workshop on Debt Portfolio Review 2017 SPT1, UNCTAD, SPT2 Completed
3.1.4   Produce the BTr’s “Debt Portfolio Review” 2015-2018 SPT1, UNCTAD, SPT2 Ongoing
3.1.5   Implement updated e-views software 2015-2016 SPT1, UNCTAD, SPT2 Dropped
3.3   Strengthened contingent liability management for Treasury functions 3.3.1   Recruitment of Contingent Liability Consultant Jan-Mar 2015 BTr, UNCTAD, SPT2 Dropped
3.3.2  BTr contingent liability needs assessment 2015-2018 BTr Ongoing (c/o BTr)
3.3.3   Build capacity on contingent liability management 2015-2018 BTr, UNCTAD Ongoing
3.3.4   Develop improved tools and techniques for contingent liability management 2015-2018 BTr
4)   Strengthening specific debt management functions within BTr 4.1   A consolidated data base 4.1.1   Hire an Oracle Programmer (IMAS B Enhancement) Jan 2015 BTr, UNCTAD, SPT5, SPT1 Completed
4.2  Improved debt information flows and data exchange 4.2.1   Recruit IT/Debt Management Consultant 2017 SPT1, UNCTAD Completed
4.2.2   Review document, and where possible, streamline relevant debt information flows between divisions within BTr 2015-2018 SPT1, SPT5, IT Expert/s Completed (pending activities transferred to BTr-hired IT Specialist)
4.2.3   Review document, and where possible, streamline relevant debt information flows between BTr and external organizations 2015-2018 SPT1, SPT5, IT Expert/s
4.2.4   Identify areas of automation and electronic data exchange to reduce redundant data entry and work efforts, and where possible, design exchanges and linkages 2015-2018 SPT1, SPT5, IT Expert/s
4.2.5   Improve reconciliation procedures 2015-2018 SPT1, SPT5, IT Expert/s
4.3   Debt data validation and training 4.3.1   UNCTAD debt data validation workshop Nov 2015 SPT1, SPT5, IT Experts Completed
4.3.2   Develop debt data validation manual, procedures and calendar Nov 2015 SPT1, SPT5, IT Expert/s Completed
4.4 Customized data reports and linked excel worksheets templates from DMFAS and other BTr systems. 4.4.1   Design report and worksheet formats, including data analysis Oct 2015 SPT1, SPT5, IT Expert/s Completed
4.4.2   Develop and test reports and worksheets Nov 2015 SPT1, SPT5, IT Expert/s Completed

 

ANNEX 4.2.4: PROPOSED TRAINING ACTIVITIES FOR 2018

Tables 8 and 9, below, summarizes the training activities proposed for 2018. These activities comprise the only remaining activities that need to be completed to wind up project implementation.

Table 8. Proposed Training Activities for 2018 by Date, Duration, Location, Provider and Estimated Cost

Course Title Date Duration (Day/s) Location Provider Estimated Cost (USD)[9]
DSA[10] Airfare Course Fee Total
Treasury / Asset Management
Treasury Certification Program (TCP) TBD 13/batch BTr/Ateneo R Lacsamana 30,750.00[11] 0.00 82,000.00 112,750.00
School of Bonds & Fixed Income Products 17-21 Sep 5 London Euromoney 3,248.00 2,100.00 5,415.00 10,763.00
4-8 Jun 5 New York 2,520.00 2,100.00 6,800.00 11,420.00
12-16 Nov 5 Hong Kong 2,751.00 600.00 6,240.00 9,591.00
9-13 Dec 3 Dubai 2,370.00 2,450.00 4,430.00 9,250.00
Treasury Products Workshop 3-6 Sep 4 Hongkong Euromoney 2,358.00 600.00 6,000.00 8,958.00
9-12 Oct London 2,784.00 2,100.00 6,000.00 10,884.00
Asset & Liability Management 9-12 July 4 London Euromoney 2,784.00 2,100.00 5,370.00 10,254.00
Financial Programming and Policies 17-28 Sep 12 Austria JV Institute 3,822.00 2,400.00 0.00 6,222.00
Debt Management 0.00
51th ADB Annual Meeting 3-6 May 4 Manila ADB 0.00 0.00 0.00 0.00
Debt Management Facility Stakeholders’ Forum 28-29 May 2 Brussels EC; World Bank 2,656.00 2,500.00 0.00 5,156.00
Designing Government Debt Strategy 9-13 July 7 Austria WB 2,457.00 2,400.00 0.00 4,857.00
Implementing Government Debt Strategy 16-20 July 7 Austria WB 2,457.00 2,400.00 0.00 4,857.00
Gov’t Debt Management Perf Assessment Tool 13-17 Aug 7 Austria WB 2,457.00 2,400.00 0.00 4,857.00
National Accounts Statistics 22 Oct – 2 Nov 12 Austria IMF 3,822.00 2,400.00 0.00 6,222.00
Sovereign Debt Management Forum 2018 Oct 4 Washington WBTreasury 2,178.00 2,134.00 0.00 4,312.00
Annual Meetings of the WB Group and the IMF 12-14 Oct 3 Indonesia WB-IMF 1,176.00 400.00 0.00 1,576.00
Capital Markets 0.00
Financial Markets and New Financial Instruments 23 July – 3 Aug 12 Austria JV Institute 3,822.00 2,400.00 0.00 6,222.00
FX and Money Markets 29-31 Aug 3 Hongkong Euromoney 1,965.00 600.00 4,542.00 7,107.00
Primary Market Certificate 14-18 May 5 London ICMA 3,248.00 2,100.00 10,800.00 16,148.00
Financial Markets Foundation 9-11 May 3 London ICMA 2,320.00 2,100.00 7,000.00 11,420.00
Inflation-linked Bonds and Structures TBC 2 London ICMA 1,856.00 2,100.00 4,600.00 8,556.00
Trading & Hedging Short-term Interest Rate Risk TBC 2 London ICMA 1,856.00 2,100.00 4,600.00 8,556.00
Trading the Yield Curve with Int Rate Derivatives TBC 2 London ICMA 1,856.00 2,100.00 4,600.00 8,556.00
Economics/Finance 0.00
Fiscal Sustainability (FS) 23 July – 3 Aug 12 Austria IMF 3,822.00 2,400.00 0.00 6,222.00
Fiscal Policy Analysis (FPA) 27 Aug – 7 Sep 12 Tanzania IMF Institute 1,876.00 2,000.00 0.00 3,876.00
Vulnerability Diagnostics 3-14 Dec 12 Austria IMF 3,822.00 2,400.00 0.00 6,222.00
Public Governance 0.00
Tools and Policies for Inclusive Growth 6-17 Nov 12 Austria IMF Institute 3,822.00 2,400.00 0.00 6,222.00
Financial Development and Financial Inclusion 5-16 Jun 12 Austria IMF 3,822.00 2,400.00 0.00 6,222.00
Contingent Liability 0.00
Contingent Liability 30 Apr – 4 May 5 Austria WB 6,688.50 2,400.00 0.00 9,088.50
Disaster Risk Financing 0.00
Global Seminar on Disaster Risk Financing 6-7 May (TBC) 2 Bangkok ADB, OECD 2,708.00 800.00 0.00 3,508.00
Asian Ministerial Conf on Disaster Risk Reduction 16-19 Jul 4 Mongolia UNISDR; NEMA 2,031.43 1,800.00 0.00 3,831.43
Financial Technology 0.00
FinTech: Exploring Financial Technologies 2 Scotland TECT 1,750.00 2,500.00 812.00 5,062.00
IT/ Database/DMFAS 0.00
SEC301: Introduction to Cyber Security Various 8 Various SANS 3,630.00 2,134.00 5,380.00 11,144.00
Basic DMFAS Functional Training TBC 5 Manila DMAD 0.00 0.00 0.00 0.00
Study Missions TBC 5 Belgium UNCTAD 3,248.00 2,100.00 0.00 5,348.00
TBC 5 Mexico UNCTAD 3,248.00 2,100.00 0.00 5,348.00
Total 127,980.93 68,018.00 164,589.00 360,587.93

 

Table below fleshes out the proposed training activities in terms of description (content, objectives, etc) and the CB enhancement needs or skills gaps that they are expected to address.

Table 9. Proposed Training Activities for 2018 by Relevance (What Project Outputs are being addressed?)

Course Title Target Group / Who Should Attend? Description / Objectives Relevance (CB enhancement needs/skills gaps addressed)
Treasury / Asset Management and Capital Markets
Treasury Certification Program Participants will consist mostly of BTr staff (central and regional offices) who are designated as, or perform functions in, or whose tasks are related to operations in, the following: Dealing Room, Treasury Bonds and Capital Markets Staff, Middle Office and Operations Personnel, Auditors and Compliance Officers, System Developers, Risk Officers, etc. After completing the TCP, participants are expected to (1) gain an insight on working money market (local and foreign) and assist in the management of a money market book; and (2) gain a working knowledge and practical understanding of the foreign exchange market, covering spot foreign exchange and forward foreign exchange for both interbank activities and corporate businesses.

Four batches at an average of 30 participants per batch shall be conducted in 2018.

This training addresses Project Objectives 2 and 3, particularly Outputs 2.3 (strengthening ALM capacity); 2.3 (overall HR capacity); 3.1 (improved treasury risk management in support of debt management); and 3.4 (improved cash management in support of debt management). Participants are expected to help BTr in carrying out government strategy to further develop the domestic and foreign capital markets.
School of Bonds & Fixed Income Products This course is tailored for those who are involved in: Public and corporate Finance /Corporate Treasury; Capital Markets; Audit / Product Control /Risk Management / ALM; Research & Analysis; Sales & Trading; Investment Management In five days participants will gain an in-depth understanding of: Classification of bond instruments; Yield curve analysis; Pricing methodologies; Interest rate and currency swaps: uses and valuation; Bond trading and portfolio applications; Securitization and asset-backed securities; Repo markets; Financial engineering with swaps; Origination; Funding & Investment, etc. This training also addresses Project Objectives 2 and 3, particularly Outputs 2.3, 2.3, 3.1, and 3.4. Participants are expected to expand their knowledge on the structure and application of bonds and fixed income products, in support of BTr’s overall debt management strategy of establishing a robust domestic and foreign capital markets.
Treasury Products Workshop Those who are tasked with managing treasury and derivatives products. Sound treasury management utilizes the right financial products to manage risk, capitalize cashflow and minimize debt financing. This 4-day programme provides participants a comprehensive understanding of the products used by banks and corporate treasuries in today’s successful treasury management. The course also provides insights on how to implement a robust risk management strategy to weather today’s tough market conditions. This training also addresses Project Objectives 2 and 3, particularly Outputs 2.3, 2.3, 3.1, and 3.4. BTr’s treasury management capacity will be enhanced by this training as participant/s are expected to gain insights into the best borrowing sources and investments and when and how to use them, together with an insight into the essential processes to the smooth day-to-day running of BTR’s financial position.
Asset & Liability Management ·      Group Treasurers, Chief Risk Officers, Accounting and Finance Managers

·      Asset Managers, Liquidity Managers, Risk Managers and Risk Controllers, Risk Officers, Auditors and Bank Regulators

Basic knowledge in risk management, control and statistics is required. Active participation of the class is necessary to benefit from the full value of this programme.

This course explores issues and challenges for risk managers auditors and regulators. The course emphasizes practical advantages and disadvantages of risk measurement and management tools and techniques. Samples of best practices risk reports are provided. Course knowledge is reinforced through workshops using MS Excel to explore rate risk measurement and liquidity stress testing as well as course reviews. This training also addresses Project Objectives 2 and 3, particularly Outputs 2.3, 2.3, 3.1, and 3.4. The case studies will give BTr participants real life examples of the theories covered in the lectures, enabling them a greater understanding of the course topics. This will enable them return to their respective assignment with an extensive and valuable source of information on the following: Using EaR and EvE to measure IRR; Measuring liquidity cash flow coverage and survival horizons; Managing interest rate risk; Managing liquidity risk; Best practice risk reporting; Contingency planning; Meeting requirements for regulatory compliance, etc.
Financial Programming and Policies Officials from BTr, DoF and BSP who advise on or help implement macroeconomic and financial policies. Participants are expected to have a degree in economics or equivalent experience, along with proficiency in the use of spreadsheets. Participants are strongly recommended to complete the online FPP.1x and FFP.2x courses prior to enrolling in this course. This course, presented by the IMF’s Institute for Capacity Development, aims at teaching participants how to both diagnose macroeconomic imbalances and correct them through a coordinated set of adjustment policies. It covers the principal features of the four main macroeconomic sectors (real, fiscal, external, and monetary/financial) and the interrelations among them, highlighting both accounting and behavioral relationships, using data from a country case study. Upon completion of this course, BTr participants should be able to: Analyze the country’s economic and financial developments using historical data and a hands-on, Excel-based framework; Create consistent one-year economic projections under the assumption of unchanged policies; Identify economic vulnerabilities and risks under a baseline scenario and policy measures to address them; Prepare an adjustment scenario which reflects these policy measures and their macro impacts, etc. Knowledge and skills gained will enhance BTr’s capacity for ALM and debt management.
Financial Markets and New Financial Instruments Mid- to senior-level officials in BTr, DoF and BSP who are interested in more advanced finance topics than those offered in the Financial Markets Analysis course. Participants are expected to have an advanced degree in economics or finance, or equivalent work experience. The course requires heavy use of Excel spreadsheets and participants should be proficient in their use. This two-week course, presented by the IMF’s Institute for Capacity Development, aims at providing participants with the foundation of financial instruments beyond the standard treatment of bonds and equity covered in the FMAx. After a short review, the course takes on forwards, futures, swaps and options and moves toward combinations of these building block instruments with practical applications. This learning activity will further enhance BTr’s capacity for planning and implementation of its capital markets development initiatives (Project Objectives 2 and 3). BTr participants can, among other things: Identify and use the building blocks to construct financial instruments; Explain the underlying economic rationale for various financial instruments and markets; Use basic pricing models to identify potential mispricing and misuse of financial instruments; Identify threats to financial stability in markets and instruments, using case studies of previous financial crises.
FX and Money Markets ·      Money market managers

·      Corporate finance executives

·      Treasury executives

·      Relationship officers

·      Foreign exchange executives

·      Accountants and auditors

Foreign Exchange (FX) and Money Markets course provides a firm grounding in the instruments and activities of the international money and FX markets, sweeping away the confusion that can be created by the scale, speed and apparent diversity of the markets. In recent years, the importance of the money markets has become even greater as financial institutions focus more closely on the management and diversification of their sources of liquidity, apply greater discipline to their funding and examine the attractions of short term investment and trading strategies. This course is beneficial for BTr staff as they plan and implement programs for capital markets development. As participants, BTr staff can better appreciate the current profile of the markets and gain up-to-date insights, emphasizing the integrated nature of the market—in particular, how different instruments perform the same or similar functions and the opportunities they provide for arbitrage and hedging. Participants are also able to analyze the liquidity characteristics and risks of different instruments and funding strategies. (Project Objectives 2 and 3)
Inflation-linked Bonds and Structures This course is suitable for anyone with an understanding of the fundamental concepts of finance and fixed income.  An understanding of bond pricing and market risk (i.e. duration / DV01) is assumed. This training is primarily designed to increase the awareness of the concept of inflation as an investable asset class. Beginning with the fundamentals of inflation, the syllabus then explores the key aspects and benefits of inflation-links bonds and other structures such as swaps and options. BTr will benefit from this training as it continues to build local and foreign money markets. Participants are expected to: (1) understand the economics of inflation; (2)  be able to calculate ILB cash flows; (3) have a thorough knowledge of inflation bonds, swaps and options; and (4) be able to look at different types of trades for trading inflation.
Trading and Hedging Short-term Interest Rate Risk Recommended for those who are familiar with the basic types of derivative security (forwards and futures, swaps and options) is recommended. Basic understanding of fundamental financial market concepts is helpful. The course looks at over-the-counter and exchange-traded instruments related to short-term interest rates. These instruments are compared and contrasted in terms of interest rate exposure and credit risk and their relative value is assessed as tools for hedging and expressing views about changes in the yield curve. This training will enable BTr participants to (1) better appreciate hedging with STIR futures; (2) find out about market directional, relative and curve trades; and (3) understand monetary policy and the yield curve
Trading the Yield Curve with Interest Rate Derivatives Recommended for those who are familiar with the basic types of derivative security (forwards and futures, swaps and options) is recommended. Basic understanding of fundamental financial market concepts is helpful. The course explains how to use exchange-traded and OTC derivatives to profit from expected changes in the yield curve. Different derivative instruments are compared and contrasted in terms of their interest rate exposure and counterparty credit risk and their relative value is assessed as tools for expressing views about the volatility of interest rates. This training will enable BTr participants to (1) understand factors driving the yield curve and trading the yield curve; (2) look at trading the yield curve and managing interest rate risk with bond futures; and (3) learn about swaps, swap variations and trading the yield curve with swaps
Debt Management
2018 Debt Management Facility Stakeholders’ Forum Philippine government high-level policy makers and debt managers, representatives of civil society organizations, multilateral and bilateral donors, international and regional providers of technical assistance and NGOs. The DMF II builds on the success of Phase 1 of the DMF, a multi-donor trust fund launched in 2008 and designed to help developing countries strengthen their capacity to manage their public debt. The Forum aims to provide discussions on policy-relevant research relating to debt policy and debt management; discuss current challenges faced by developing countries with respect to debt management; and foster knowledge exchange among participants. DMF II, jointly with the IMF, was launched in 2014, building on the success of Phase 1, to provide grant-based technical assistance on debt management to developing countries. Responding to Project Objectives 2 and 3, this Forum can further strengthen debt management capacity of BTr. Forum current activities include: application of the Debt Management Performance Assessment (DeMPA) tool; preparation of Medium-Term Debt Management Strategies (MTDS); assistance to develop domestic debt markets, access international capital markets, build capacity to undertake debt sustainability analysis, develop detailed programs of reform in consultation with country authorities and provide technical assistance on overall risk management.
Designing Government Debt Strategy BTr, DoF and BSP technical and management-level staff involved in policy analysis and policymaking in debt management. This one-week workshop guides participants through the process of developing a public debt management strategy based on an analysis of financial cost and risk tradeoffs. Presentations and country cases illustrate the different stages of the strategy development process. Hands-on exercises focus on quantitative tools necessary to support debt management decisions such as calculating risk exposure indicators and scenario analysis. BTr’s middle office (especially CMSPD and DSPD) needs a continuous process of training on developing debt management strategies. This training facilitates learning on strategy development, as participants apply concepts and develop practical examples of debt management strategies. This workshop responds to Project Objectives 2 & 3, especially Output No. 2.2 (Strengthened overall HR capacity for performing debt and risk management).
Implementing Government Debt Strategy BTr, DoF and BSP technical and management-level staff involved in policy analysis and policymaking in debt management. This one-week workshop aims to build capacity in various aspects of implementing a debt management strategy, including the design of a cost-effective funding program, in ways that contribute to developing the domestic debt market. This complements learning from DGDS as participants explore techniques to alter the existing portfolio structure, using swap operations, exchange offers and buyback programs. The workshop combines conceptual presentations, case studies, and hands-on exercises.
Government Debt Management Performance Assessment Tool Philippine Commission on Audit staff and mid-level officials from BTr, DoF and BSP staff working on debt issues. Developing countries face various policy, institutional, and operational challenges due to weak debt management capacity and the lack of efficient debt markets, which require advanced knowledge of debt management processes and techniques. Also, public sector auditors are tasked with undertaking performance evaluations of government debt management practices, but often lack specific methodologies to carry out such activities. The Government Debt Management Performance Assessment (DeMPA) methodology, which was updated by the World Bank in 2015, provides a systemic tool for assessing debt management performance based on international sound practices in government debt management. The course format includes presentations and hands-on case studies with discussions on operational application. As principal administrator of national government debt, the BTr needs to continually improve its debt management performance. This can be done by getting inputs from DeMPA. The learning process enables participants to (1) get acquainted with the new trends and challenges in public debt management in developing countries, and (2) understand the scope and methodology for the application of the DeMPA methodology for designing debt management reforms and conducting external audit activities. It also enables participants to understand the inter-linkages between the debt performance indicators, the use of evidence-based data for assessing debt management in a country, and be familiar with the scoring methodology; and to learn in detail about expected outputs and outcomes, actions, sequencing and milestones, and provide budget estimates required to implement the plan.
National Accounts Statistics

 

Compilers of national accounts statistics employed by agencies responsible for official national accounts data. Participants should have a degree in economics or statistics or equivalent experience. This two-week course, presented by the IMF’s Statistics Department, covers theoretical and practical aspects of compiling national accounts statistics based on the System of National Accounts 2008 (2008 SNA). The course consists of lectures on methodological and compilation issues covered in the 2008 SNA and workshops consisting of practical exercises in compiling accounts. It covers the main concepts related to transactions, other economic flows, stocks, institutional units, classifications, and the main macroeconomic aggregates measured by the system. Sharing country experiences among the participants is also emphasized. This course can help inform and enhance BTr’s involvement in the Public Finance Management Program of the national government. Participants are expected to: Understand the main concepts and definitions of the 2008 SNA; Describe the compilation of GDP using production, expenditure, and income approaches; Discuss the importance of price and volume measures in national accounts; Explain the value of high-quality national accounts statistics to policymakers and business decision-makers. The purpose of the course is to train participants in how to compile annual GDP both at current prices and in volume terms using the production and expenditure approaches.
Sovereign Debt Management Forum  Debt managers This forum builds on the considerable developments that took place in public debt management in developing and emerging market countries in recent years, as well as improved access to markets. It allows participants to meet members of the international community involved in sovereign debt management capacity building and advisory services, discuss recent trends and developments, network with a broad range of peers, and to gain insights to support ongoing efforts to improve policy and practices. This Forum enhances the capacity of BTr to perform debt management functions as its participants gain knowledge and skills from exchange of information with their fellow public debt managers and recognized global leaders in the field of public debt management.
International Retail Debt Management Symposium Debt managers The International Retail Debt Management Symposium brings together countries with seasoned retail programs and those looking to establish or review existing programs. The Symposium provides a forum for debt managers to discuss current issues and trends such as product development, distribution channels, market research, and use of new technology. This provides inputs for improving BTr’s Retail Treasury Bonds (RTBs).
Spring Meetings of the WB Group and the IMF The Annual and Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group each year bring together central bankers, ministers of finance and development, private sector executives, civil society, and academics to discuss issues of global concern, including the world economic outlook, global financial stability, poverty eradication, jobs and growth, economic development, and aid effectiveness. The Meetings, which are widely covered by the international media, also offer an opportunity for civil society organizations to share their views and interact with policymakers in a global setting. These meetings allow BTr participants to meet together central bankers, ministers of finance and development, private sector executives, civil society, and academics to discuss issues of global concern, including the world economic outlook, global financial stability, poverty eradication, jobs and growth, economic development, and aid effectiveness.
Annual Meetings of the WB Group and the IMF
Economics/Finance
Fiscal Sustainability (FS) Junior- to senior-level officials with some intermediate fiscal background, who are interested in understanding and applying a fiscal sustainability analysis and its applications in the context of country-specific macro-fiscal environments. Having a degree in economics or equivalent experience is helpful. Completion of the online course on Debt Sustainability Analysis is recommended. This course looks at fiscal sustainability as a key requirement to achieve macroeconomic stability and ensure sustainable long-term growth and equity. It provides a thorough overview of how to assess fiscal sustainability from a policy and tools perspectives. It presents and discusses tools to understand fiscal risks and early warning indicators used by the IMF; sovereign debt management strategies; and debt crisis. It also covers policy issues related to long-term fiscal challenges such as aging populations and pension reform, and the impact of various contingent liabilities (such as Public Private Partnerships—PPPs) on the long-term fiscal position. Highly responsive to BTr’s need for enhancement in its risk management and contingent liability management strategies (Project Objectives 2 and 3). Participants are expected to: (1) understand why fiscal sustainability is key to macroeconomic stability and sustainable growth; (2) know key concepts, definitions and techniques for fiscal sustainability analysis; (3) identify near- and long-term risks and fiscal vulnerabilities; (4) analyze crises and fiscal adjustments cases; (5) differentiate between various Debt Sustainability Analysis frameworks; and (6) prepare a risk-based Debt Sustainability Analysis for the case of a country with access to financial markets.
Fiscal Policy Analysis (FPA) Participants should have taken courses in macroeconomics, or have equivalent experience, and have a basic background in microeconomics and econometrics. Ideal for junior- to senior-level officials those who wish to gain a broad understanding of the impact of fiscal policy on the economy and related tools of analysis. This course, presented by the IMF’s Institute for Capacity Development, aims at providing an overview of the key fiscal policy concepts and techniques used to analyze how fiscal policy can help ensure macroeconomic stability and sustainable long-term growth. This hands-on course is built around core macro-fiscal topics needed to analyze fiscal policy. Units will be substantiated by general empirical findings, Excel-based workshops, case studies, and selected topics of regional interest. As key adviser to the economic team of the Philippine Government, the BTr needs cutting-edge analysis of the local and global economy. By sending its staff to this training, the BTr will have access to discussions on the role of fiscal policy in attaining the key objectives of the government: macro-stability, equity and efficiency, and sustainable long-term growth. Participants will be able to use the tools and techniques to assess the fiscal stance, fiscal multipliers, and debt sustainability, as well as review the key elements of tax and expenditure policy.
Vulnerability Diagnostics BTr, DoF and BSP officials involved in monitoring and assessing vulnerabilities and risks at the country and regional levels. Participants are expected to have an advanced degree in economics or equivalent experience, a basic background in econometrics, and familiarity with the use of software for econometric applications This two-week course, presented by the IMF’s Institute for Capacity Development, complements the Macroeconomic Diagnostics (MDS) course by strengthening participants’ ability to assess fiscal, financial, and external vulnerabilities in an integrated fashion through the use of several diagnostics tools aimed at capturing tail risks.

 

As key adviser to the economic team of the Philippine Government, the BTr needs cutting-edge analysis of the local and global economy. This training shall enable BTr participants to (1) identify appropriate measures of fiscal, financial, and external vulnerabilities; (2) describe how vulnerabilities can arise as a result of adverse shocks and/or flawed policies, and how these vulnerabilities can morph into crises; and (3) implement a set of diagnostics tools to track measures of vulnerabilities and predict indicators of tail risks, etc.
Contingent Liability
Contingent Liability Government risk managers, particularly from debt and fiscal risk management offices, from WBG client countries, with a focus on IBRD and Blend countries This five-day training will help government risk managers in identifying and classifying the key types of Contingent Labilities (CLs) countries are exposed to and the key characteristics of a government’s risk exposure. The training is delivered through a combination of presentations and case studies. BTr participants are expected to be able to develop and present for BTr use a holistic risk management framework for a chosen country, among other outputs.
Disaster Risk Financing
Asian Ministerial Conference on Disaster Risk Reduction (AMCDRR ) 2018 Representatives of Asian and Pacific countries, stakeholder groups and development and humanitarian partners The AMCDRR will reflect on three years into the implementation of the Sendai Framework, review progress made against the commitments at the AMCDRR 2016, and reaffirm political commitment on disaster risk reduction. This training responds to the need for BTr to be active participant in processes that go into national government’s policy actions related to disaster risk financing.
Financial Technology
FinTech: Exploring Financial Technologies ·      Individuals wanting to understand the dynamic new FinTech landscape.

·      Managers and company directors wanting to effectively integrate FinTech systems into their business.

·      People wanting a Galileo Master Certificate (GMC)

Course Content:

·      Introduction to the FinTech; Understanding the fundamentals of technologies

·      Intermediation, disintermediation and re-intermediation

·      Financial, economic and regulatory frameworks

·      Alternative forms of finance

·      FinTech models: traditional and new

·      Security and Data protection

This training can help BTr identify and understand alternative forms of finance, in keeping with the rapid technological advances that are impacting on the world of finance.
IT/ Database/ DMFAS
Basic DMFAS Functional Training DMFAS existing and new users in BTr/DoF Upon completion of this training, participants can:

·      Understand the life cycle of a debt instrument in DMFAS; Understand the classification scheme

·      Grasp the basic functionalities of DMFAS 6; Use DMFAS 6 to record debt instruments, general agreements, grants, reference files and related transactions; Employ DMFAS 6 to generate export files; Work with new modules relating to debt securities, auctions, private nonguaranteed external debt, short-term external debt, debt reorganization, analytical features, and the new reporting tool

Further build on the capacity of BTr staff and personnel to operate DMFAS.
SEC301: Introduction to Cyber Security

 

·      Anyone new to cyber security and in need of an introduction to the fundamentals of security

·      Non-IT security managers who deal with technical issues and understand them

·      Professionals with basic computer and technical knowledge in all disciplines who need to be conversant in cyber security

After the training, participants are expected to be able to, among other things:

·      Communicate with confidence regarding information security topics, terms, and concepts

·      Understand and apply the Principles of Least Privilege; Understand and apply the Confidentiality, Integrity, and Availability (CIA) Triad; Grasp basic cryptographic principles, processes, procedures, and applications

·      Understand computer network basics

This training can boost the IT capacity of BTr staff (especially MISS)
Study Missions
Belgium, Mexico BTr officials and personnel, especially those who are involved in asset and liability management. Tentative topics: Overview of Debt Management in Belgium and Mexico, including the institutional set-up and establishment of the debt office; Liability management techniques; Cash Management and Short-term Borrowings; Risk Management Framework; Debt statistics and accounting; and Overview on the Operations of the Treasury Single Accounts (TSA). The study visits can further enhance BTr’s perspectives on, among other things, the operation and management of the TSA, Treasury, capital markets, inter-agency coordination, as well as operational and institutional arrangements. Delegations can learn more on: (1) RTBs; (2) Primary Dealer System; (3) Contingent Liability Management; and (4) Risk Management.

 

Annex 4.3: Completed Training Activities

Discussed below are the training and related activities conducted since 2011 until 2017. The inputs which the project made available for these activities include course fees, per diems, travel costs, and other resources needed for project coordination and management. Initial results from these activities are presented in the succeeding sections.

Table 10. List of completed training activities, by year, location, training provider, number and name of participants, and estimated cost

Event/Activity Title Year Location Provider Participant/s Estimated Cost (USD)
No. Names
Workshops/Conferences/Forum/Seminars
1 Sovereign Debt Management Forum 2012 Washington WB 5 DTOP Ed Mendiola, DTOP Christine Sanchez, William Beluso, Irene Jonson, DTOP Sharon Almanza 33,505.68
2016 Washington WB 1 DTOP Erwin Sta. Ana 4,312.00
2 GDMI Workshop – Vienna 2013 Vienna WB-VI 1 Jessica Farinas 6,757.00
2014 Vienna WB-VI 2 Karen Mahinay, JK Trinidad 9,000.34
3 Daiwa Capital Markets Conference 2013 Tokyo Daiwa 4 Ricca Nicolas, Karen Sarmiento, Tyrone Brotarlo, Marc Crisostomo 6,576.00
2014 Tokyo Daiwa 4 Gisela F. Lood, Soledad Emilia J. Cruz, Aurora S. Marcelino, Imelda G. Mendoza 8,234.00
2016 Tokyo Daiwa Irene Jonson, Amor Dais 4,940.40
4 UNCTAD Debt Management Conference 2011 Geneva DMFAS 2 DTOP Ed Mendiola, Irene Jonson 11,220.00
2013 Geneva DMFAS 9 DTOP Christine Sanchez, DIR Nanette Diaz, Elizabeth Awayan, Paul Pacheco, Jico Oracion, JC De Leon, Everette Villaraza, Charisse Hipolito, Irene Jonson 33,660.00
2015 Geneva DMFAS 7 DTOP Erwin Sta. Ana, DTOP Sharon Almanza, Irene Jonson, JC De Leon, et al 26,180.00
2017 Geneva DMFAS 3 TOP Rosalia De Leon, Edna Bona, Irene Jonson, Miguel Sevidal 14,960.00
5 Bilateral Meetings 2014 Washington WB-US Govt 1 Erwin Sta. Ana 4,607.29
6 Debt Sustainability Analysis Training 2014 Bangkok WB 2 Nicholas Pacheco, Jose Oracion 4,616.79
7 Gov’t Bond Market Conference & Technical Workshop 2014 Romania WB-RMPF 6 Dir Nanette Diaz, Dennis Landicho, Edna Bona, Amparo Abad, Arturo Trinidad, Ed Marino 15,360.40
2017 Romania WB-RMPF 1 Jose Carlos Sebastian 2,713.67
8 WB Debt Management Conference 2014 Belgium WB 5 Felimon Condino, Irene Jonson, Kenneth Francisco, Corinne Balansag, Jacquiline Santiago 18,046.39
9 Frontiers in Development Policy 2014 Washington WBI 1 Dennis Landicho 5,531.97
10 ADB Public Debt Management Conference 2014 Georgia ADB 5 Dominick Mariano, Ciara Comprendio, Jose Oracion, Joaquin Sanchez, Jeff Ramirez 10,181.88
11 Course on Financial Sector Issues 2014 Washington WB 1 DTOP Sharon Almanza 5,479.28
12 IMF Public Debt Management Forum 2014 Paris IMF-AFT 1 Dir Nanette Diaz 3,305.46
2015 Washington IMF 1 Irene Jonson 3,470.73
2017 Mexico IMF-AFT 2 Irene Jonson, Paul Allado 10,065.13
13 Fixed Income Training Seminar 2014 Zurich Credit Suisse 2 Ed Marino, Edward Lumidao 9,575.88
2016 Zurich Credit Suisse 1 Quinito Sanchez 5,266.73
14 Global Master Agreements for Repo and Securities Lending 2014 London ICMA 1 Atty. Erwin Sta. Ana 12,486.88
15 Non-Deal Roadshow 2014 Tokyo PH Gov 1 Corinne Balansag 2,710.50
16 WB Debt Management Facility Stakeholders Forum 2014 Belgium WB 5 Filemon Condino, Irene Jonson, Kenneth Francisco, Corinne Balansag, JC De Leon 18,226.85
2017 Vienna WB 1 Therese Calixto 4,009.91
17 Securities Operations Foundations Course 2014 Brussels ICMA 1 Ednaliza Bona 7,124.07
18 Fixed Income Portfolio Management 2014 London ICMA 0.00
19 Fundamentals of Derivatives 2013 Makati Ateneo CCE 11 Lara Aduna, Paul Allado, Erika Barredo, Rafael Carreon, JC De Leon, Jessica Farinas, Ricca Nicolas, Jico Oracion, Paul Pacheco, Joaquin Sanchez, Karen Sarmiento 31,410.50
2014 Makati Ateneo CCE 1 Corinne Balansag 2,855.50
20 Treasury Certification Program 2016 Manila GPFTP-BAP 35 Jose AS Alandy, Clarizza Estrada, Mark Hong, John Lunk, Kaila Masa, Luis Señires, Kristine Villa, Rozella Villanueva, Megan Barte, Fe Ajesta, Kristine Lurzano, Gabriel Tiu, Rey Valencia, Rocel Cauilan, Joann Samson, Leonesse Teves, Jazz Mayor, Stephen Adrayan, Nathalie Acio, Bonijun Patac, Angie Poe Ponce, Sol Cortes, Maura Espina, Trisha Querijero, EJ Carolina, Jasper Meneses, Eden Santos, Paul Allado, Karen Sarmiento, Criszel Docog, Lea Avellanosa, Jake Javier, Ma Therese Calixto, Joaquin Sanchez, Amor Dais 28,187.50
2017 Manila GPFTP-BAP 26 Niña Marie Escobal, Jennylyn Salvador, Ferdinand Catacutan, JC Sebastian, Shannen Chua, Roselyn Aquino, Miguel Sevidal, Marion Aguelo, Celestina Villalobos, Gemmalyn Aguanta, Mary Grace Doctor, Marie Ursaiz, Robert Aspa, Alexus Pastrana, Angie Gaw-Ponce, Wilhelmsen Palmes, Ray Gomez, Alwyn Villaruel, Aila Reyes, Manuel MM Villalon II, Julio Jerome Cosico, Rosamund Faye A. Melig, Varellie C. Vargas, Melanie Garcia, Gretchen Lagonoy, Stephen Adrayan 21,140.63
21 ASEAN Bond Market Forum 2016 Bangkok ADB 3 Dir William Beluso, Dir Nanette Diaz, Atty. Tyrone Brotarlo 6,080.00
22 Modern Asset Allocation & Portfolio Construction 2017 Singapore LFS 1 Lines Palmes 3,040.00
23 Assessing and Managing Risks from CL WS 2018 Vienna WB 1 Luis Senires 5,757.00
SUB-TOTAL 154 400,596.36
DMFAS/IT Trainings
1 DMFAS TfT-Functional (Batch 1) 2013 Geneva DMFAS 3 Ma Ana Pagdilao, Liza Concepcion, Kenneth Francisco 19,066.76
2 DMFAS TfT-Functional (Batch 2) 2014 Geneva DMFAS 4 Lara Aduna, Jessica Farinas, Donnalyn Minimo, Paul Allado 28,585.84
3 DMFAS Training for BTr Users 2014 Manila BTr 20 Lenit Bobis, Fely Hidalgo, Nora Falcon, Annabelle Borja, Norma Bolire, Marisa Perlado, Sonia Mañaco, Merced Gomez, Luz Mateo, Karen Mahinay, Eduardo Lao, Bona Bustamante, Salome Andrada, Floresca Papa, Kim Howell Honor, Jocylyn Bejar, Vicky Gan, Purita Belgica, Enrieta Marco, Amuerfina Reyes 2,150.00
2016 Manila BTr 17 Marites Masarap, Jico Oracion, Rosella Villanueva, Elizabeth Solis, Joanne Samson, Nathalie Acio, Nora Falcon, Antonio Manuel, Ana Daisy Peñalosa, Imelda Mendoza, Avelina Zumarraga, Eden Grace Santos, Marcela Dalangin, Corazon Carabbacan, Mark Hong, Jake Javier, Luis Señires 1,950.00
4 DMFAS TfT-IT 2014 Geneva DMFAS 5 Jico Oracion, JR Adriano, Irene Jonson, Norma Bolire, Regie Tamayo 47,652.60
2017 Geneva DMFAS 4 Mark Castro, Jacqui Santiago, JR Adriano, Karen Mahinay 42,887.34
5 Oracle Database 12c: Introduction to SQL Ed 1 2014 Makati Oracle 9 John Rudolf Adriano, Fortunato Lindain, Kristine Mahinay, Liza Concepcion, Jessica Farinas, Jose Oracion, John Cedrick De Leon, Arturo Trinidad, Leonisa Carreon 12,965.23
6 Oracle Database 12c: Program with PL/SQL Ed1 2014 Makati Oracle 2 Fortunato Lindain, JR Adriano 2,881.16
7 Oracle Database 11g: Admin WS 1 Ed 1 2014 Makati Oracle 2 Floresca Papa, Kim Howel Honor 2,881.16
8 Oracle Database 11g: Admin WS 2 Ed 2 2014 Makati Oracle 2 Floresca Papa, Kim Howel Honor 2,881.16
9 Oracle Forms Dev 10g: Build Internet Apps Ed2 2014 Makati Oracle 2 Fortunato Lindain, JR Adriano 2,881.16
10 Java SE 7 Fundamentals Ed 2 2014 Makati Oracle 2 Fortunato Lindain, JR Adriano 2,881.16
11 Java SE 7 Programming Ed 2 2014 Makati Oracle 2 Fortunato Lindain, JR Adriano 2,881.16
12 Oracle Reports Dev 10g: Build Reports Ed 1 2014 Makati Oracle 2 Fortunato Lindain, John Rudolf Adriano 2,881.16
13 JAVA EE6: Developing Web Components with Servlets and JSPs 2014 Makati Oracle 2 Fortunato Lindain, John Rudolf Adriano 2,881.16
14 Developing Web Apps Using JSF Tech’gies Ed 2 2014 Makati Oracle 2 Fortunato Lindain, John Rudolf Adriano 2,881.16
15 Debt Statistics Workshop 2015 Manila DMFAS 20 Lara Aduna, Eden Santos, Ma Erika Reyes, Teresita Dancel, Lina Santos, JK Trinidad, Jico Oracion, Raffy Carreon, Liza Concepcion, Ana Pagdilao, Karen Mahinay, Rowena Guillo, Naome Manuel, Felisa Hidalgo, Leonora Falcon, Gloria Antazo, Irene Reloza, Julius Espejo, Alexus Pastrana, Jake Javier 18,110.00
16 Debt Data Validation Workshop 2016 Manila DMFAS 21 Annabelle Borja, Ma. Ana Pagdilao, Norma Bolire, Sonia Mañaco, Merced Gomez, Marisa Perlado, Bona Bustamante, Karen Mahinay, Stephen Adrayan, Felisa Hidalgo, Bonijun Patac, Maureen Barandon, Florinda Ramirez, Gloria Antazo, Irene Reloza, Ladislao Baybay, Liza Concepcion, Floresca Papa, Ma. Caridad Soliven, Milagros Manlosa, Elizabeth Solis 19,921.00
17 Debt Portfolio Analysis Workshop 2017 Manila DMFAS 27 Jose Antonio Alandy, Raffy Alipio, Karen Mahinay, Roselyn Aquino, Stephen Adrayan, JC Sebastian, Shannen Chua, John Dexter Lunk, Eden Santos, Maria Denise Llanes, Rowena Mason, Byron Leyran, Jaymar Saturnino, Irene Reloza, Rozella Villanueva, Dianne Orendain, Miguel Sevidal, Bonijun Patac, JR Adriano, Lara Aduna, Joann Samson, Tyrone Brotarlo, Alvin Esmade, Harvey Juico, Philsaint Bantang, Nathalie Acio, Mark Castro 35,857.80
 SUB-TOTAL 148 255,077.01
Study Missions
1 South Africa 2017 Pretoria SA 3 DTOP Sharon Almanza, Art Trinidad, Luis Senires 0.00
2 Australia 2014 Australia AOFM 7 Irene Jonson, Sharon Almanza, Amparo Abad, William Beluso, Ian Francisco, Emmanuel Mannuel, Merlita Mendiola 15,095.57
3 Italy 2014 Italy DdT-PDMN 6 TOP Rosalia De Leon, Dir Nanette Diaz, F Condino, Dom Mariano, Rafael Carreon, Melody Alcera, Erika Barredo 19,059.06
4 Turkey 2014 Ankara Turkey 7 William Beluso, Marcia Salazar, Reggie Tamayo, Marc Crisostomo, Karen Sarmiento, Erwin Sta. Ana 24,686.58
5 Indonesia 2013 Jakarta DMO-Ind 10 DTOP Gisella Lood, DTOP Sharon Almanza, Felimon Condino, Irene Jonson, Vicky Patinio, Amaparo Abad, Lara Aduna, JK Trinidad, Erwin Sta. Ana, Arturo Trinidad II 20,770.00
6 Czech Republic 2013 Prague DMO-Czech 6 DTOP Sharon Almanza, Dir Nanette Diaz, William Beluso, Dominick Mariano, Ciara Comprendio, Dennis Landicho 5,674.00
7 Brazil-Argentina 2013 Rio, Brasilia, Buenos Aires DMO-Brazil-Argentina 11 Art Trinidad II, Irene Jonson, Ciara Comprendio, Ed Marino, Felimon Condino, Edna Bona, Erwin Sta. Ana, Kenneth Francisco, DTOP Christine Sanchez, Karen Mahinay 124,080.00
8 Turkey-Hungary 2011 Ankara, Budapest DMO-Ankara-Hungary 4 DTOP Ed Mendiola, Amelita Castillo, Vanessa Millard 18,776.00
 SUB-TOTAL 54 228,141.21
 TOTAL 356 883,814.58
Source: Project Files


Relevance of CB inputs to project objectives

Workshops, Conferences and Study Visits in Support of Output No. 2.3 (Objectives 2, 3, and 4)

Output No. 2.3—strengthened overall HR capacity for performing debt and risk management—supports Objectives 2, 3 and 4. Inputs for Output No. 2.3 included support for at least 48 training and related CB activities benefitting at least 356 government officials and staff at an estimated cost of USD 883,814.58.

DMFAS and IT Trainings in Support of Output Nos. 2.3., 2.4, 4.1-4

Aside from the core DMFAS CB workshops (Debt Statistics, Data Validation, Portfolio Analysis), the project also supported DMFAS and IT-related trainings. These trainings address Objective Number 2, Output No. 2.4 (Improved IT service management in support of debt management). The courses include Oracle Database (Introduction to SQL, Program with PL/SQL, Administration Workshops), Oracle Forms and Reports Developer, Java SE 7 Fundamentals and Programming, and Web Apps.

The project also supported DMFAS training activities for BTr users. The support package consisted of Training for Trainers (TfT) for advanced BTr users conducted by the DMFAS Programme in Geneva. Subsequent trainings were likewise conducted by the TfT graduates for the rest of DMFAS users in BTr. The echo trainings consisted of 3 batches, one for the Debt Monitoring and Analysis (DMAD) staff and the two for selected users from other divisions in BTr.

One of the training objectives addressed the need for users to be proficient in using the system given the latest upgrades of DMFAS. The trainings aimed to achieve Project Objective Number 4, particularly Output No. 4.1 (Upgrade of DMFAS system to Version 6).

On January 22nd, 2013, a DMFAS Mission was conducted in BTr for the purpose of implementing Activity No. 4.1 of the project. The mission sought to:

  1. Provide training in the use of DMFAS 6 (mainly debt securities and reporting), and
  2. Validate the migrated debt securities database.

The training was conducted in 2 batches:

  1. January 24-25, 2013: Introductory training for DOF and new users.
  2. January 28-February 1, 2013: Functional training in DMFAS 6

Training participants comprised mostly of DMFAS users from various BTr divisions (DMAD, PD, NGDAD, SDAD, RS, FPAD, SOD, RIDD, FTD) as well as potential users from the Department of Finance (DoF) and the Commission on Audit (CoA).

The mission recommended that further trainings be conducted on DMFAS 6, including practical sessions on reports generation as well as topics on advanced features of the system such as the Analysis module.

In late 2013 and early 2014 the project conducted the DMFAS Training for Trainers Functional Workshop in Geneva for advanced users of DMFAS with the purpose of building the capacity of local staff to train DMFAS users in their respective organizations. A total of seven (7) participants, 6 from the BTr and 1 from the DoF, have completed the training, and were expected to provide inputs for a series of re-echo workshops as facilitators and resource persons.

Two levels of re-echo workshops have been proposed for BTr and DoF users. Level 1 served as a refresher course for the January-February 2013 workshops and covered the basic operations of the DFMAS. Level 2 allowed participants to gain more skills and experience from actual operations through practical sessions, as well as to be familiarized with the advanced features of the system. 

Notes on the DMFAS Training Workshops

The DMFAS Training Workshops for BTr users consisted of three parts. First was for DMAD Staff, which was conducted for three days on 10-11 April and 13 June 2014. Second was the Level 1 workshop for all BTr DMFAS users, conducted for three days on 4-6 June 2014. Third was Level 2 workshop for all BTr DMFAS users, conducted for 5 days on 23, 25-27, 30 June 2014. (Please see Annex 1 for details of Training Design.)

Highlights of Proceedings

Training for DMAD/PD Staff members

The DMFAS Training for Debt Monitoring and Analysis Division (DMAD) and Payments Division (PD) users was conducted on 10-11 April and 13 June 2014 at the MISS Training Room and, on the third day, at DMAD.

The training covered the following topics:

10-11 April 2014

  • Echo-Training of the DMFAS 6.0 Train for Trainers Workshop in Geneva, Switzerland (Batch 1 & 2)
  • Update of the new/advanced functionalities of the DMFAS 6.0
  • Discuss/resolve past and current issues encountered in recording of real transactions in DMFAS including data validation

13 June 2014

  • Review of topics discussed in the Echo-Training last April 10-11, 2014
  • Preparations for BESF tables for FY 2015
  • SQL file creation
  • Data Validation reports
  • UDR features – use of set calculation, format 4 and multicurrency report

The participants of the Training for Trainers workshop in Geneva served as the resource persons/ trainers/facilitators of the training, namely: Ma. Ana M. Pagdilao, Liza C. Concepcion, Lara T. Aduna, Jessica L. Fariñas. Ms. Karen Mahinay was designated documenter. Overseeing the whole proceedings as coordinator and facilitators were Irene Jonson (Chief, DMAD) and Hermilando Aberia (UNCTAD).

This focus-targeted training for DMAD and PD was deemed important not only as a staff development program for the concerned staff (they have access to the Administration Module of DMFAS) but also as a change management strategy for BTr. The main objective of the training was for each staff to be familiar with the work of other staff members within the division, so that replacement would not become an issue when absences, rotation or re-assignment happen.

DMFAS Training of BTR Users (Level 1)

The DMFAS Training for BTr Users (Level 1) was conducted on 4-6 June 2014 at the MISS Training Room.

Training participants included staff members from PD, Receipts, Investments and Disbursements Division (RIDD), National Government Debt Accounting Division (NGDAD), Management Information Systems Service (MISS), Statistical Data Analysis Division (SDAD), Fiscal Planning and Assessment Division (FPAD), Human Resources Management Division (HRMD), Systems Administration Division (SAD), Liability Management Service (AMS), and Cash Custodial Division (CCD).

The participants of the Training for Trainers workshop in Geneva served as the resource persons/ trainers/ facilitators of the training, namely: Ma. Ana M. Pagdilao, Liza C. Concepcion, Lara T. Aduna, Jessica L. Fariñas. Ms. Karen Mahinay was designated documenter. Overseeing the whole proceedings as coordinator and co-facilitators were Irene Jonson (Chief, DMAD) and Hermilando Aberia (UNCTAD).

The major topics discussed during the training included the following modules and/or basic concepts: Status of DMFAS 6.0, Domestic Securities Migration, Bonds and Notes, Amortization Table, Mobilization Module, Debt Service Operations, Reports Module, User Defined Reports.

DMFAS Training of BTr Users (Level 2)

The DMFAS Training for BTr Users (Level 1) was conducted on 23, 25-27, 30 June 2014 at the MISS Training Room.

Training participants included staff members from PD, Receipts, Investments and Disbursements Division (RIDD), National Government Debt Accounting Division (NGDAD), Management Information Systems Service (MISS), Statistical Data Analysis Division (SDAD), Fiscal Planning and Assessment Division (FPAD), Human Resources Management Division (HRMD), Systems Administration Division (SAD), Liability Management Service (AMS), and Cash Custodial Division (CCD).

The training covered the following topics:

  • Status of DMFAS 6.0
  • Domestic Securities Migration
  • Bonds and Notes
  • Amortization Table
  • Mobilization Module
  • Debt Service Operations
  • Reports Module
  • User Defined Reports

The participants of the Training for Trainers workshop in Geneva served as the resource persons/ trainers/ facilitators of the training, namely: Ma. Ana M. Pagdilao, Liza C. Concepcion, Lara T. Aduna, Jessica L. Fariñas. Ms. Karen Mahinay was designated documenter. Overseeing the whole proceedings as coordinator and co-facilitators were Irene Jonson (Chief, DMAD) and Hermilando Aberia (UNCTAD).

This training enabled the participants themselves to work on the DMFAS operations more as compared to the lecture-type of inputting that was done during the previous training (Level 1). The topics covered the same topics discussed in Level 1, however, more details and more examples were presented in Level 2.

These topics included the 6 phases in DMFAS 6.0 which show the life cycle of a loan or debt security. These are Negotiation, Administration, Mobilization, Debt Service, Reports, and Analysis.

Process and Methodology

The design of the training had for its basic consideration the fact that BTr users had varying levels of proficiency and hands-on experience insofar as operating DMFAS was concerned. It was for this reason that the workshops had to be conducted at 2 different levels for 3 different groups. The first group consisted of BTr users outside of DMAD, and went through 2 levels of the training, namely: Level 1 (3 days) and Level 2 (5 days). The second group comprised the same group of participants, and likewise attended the Levels 1 and 2 training. The third group consisted of DMAD and PD users, who went through a compressed version of Levels 1 and 2 training (3 days). The DMDAD training also aimed to conduct a leveling off process for DMAD staff.

At Level 1 of the training, the resource persons provided inputs on how the participants could familiarize themselves with the system through lectures and presentations. The participants followed the discussions from their computer monitors or from 2 large screens in front of the training room. At Level 2, the participants were required to apply what they learned by going through the operations themselves using their respective computers. The facilitators/trainers guide the participants in each of the exercises.

The Level 1 training served as an introductory course, helping the participants the basic concepts applied in DMFAS as well as the modules and interfaces that are available in the system. The Level 2 training aimed to increase the participants’ proficiency in the use of DMFAS. Taken together, the expected outcome for participants was their objectively verifiable progression from basic knowledge and skill to mastery.

The training applied various methodologies to promote learning among participants. These methodologies included lecture, discussion, presentation, and hands on exercises. The training team devised session guides for the resource persons (trainers, facilitators, lecturers) to follow during the actual conduct of the training. For simulation and/or hands-on exercises, the resource persons took turns in guiding the participants to go through the activities.

To promote participation and increased learning, the training management established a system of reward for participation and performance.

Evaluation

The training team administered a post-training test and evaluation to determine how the training was able to help the participants improve their knowledge of, and skills in, DMFAS operations.

Test results showed that all participants who took the exam scored an average of 80 percent (20 out of 25 questions). The lowest score was 52 percent; the highest was 100 percent. At least 50 percent of participants answered 23 out of 25 questions correctly. All participants answered at least 7 of the 25 questions correctly.

The most difficult question was Question No. 11 (Debt securities usually are paid in bullet form, what payment pattern should you use in order to enter the principal maturity in DMFAS? (a) Equal principal payments, (b) Annuity paid end of period, ( c) Equal principal payments on latest outstanding, and (d) None of the Above) as only 25 percent of respondents answered it correctly (letter c).

The training evaluation showed that more that 90 percent thought that the objectives of the training were fully achieved.

Same respondents said that all things considered, that the relative degree of training effectiveness was either “Good” (25 percent), or “Excellent” (75 percent).

References

BTr-UNCTAD. (2010). Project Document. Manila-Geneva: Strenthening Debt Management Project.

BTr-UNCTAD. (2013). Meeting Minutes. Project Steering Committee (pp. 2-7). Manila: Strengthening Debt Management Project.

BTr-UNCTAD. (2014). Terms of Reference – IT Experts and Staff. Manila: Strenthening Debt Management Project.

Daang Matuwid-Office of the President. (2014). Philippines credit rating raised to Investment Grade. Retrieved from President.gov.ph: http://president.gov.ph/daang_matuwid/philippines-credit-rating-raised-to-investment-grade/

DoF News. (2014, May 8). Philippines Receives Further Credit Rating Upgrade from Standard & Poor’s. Retrieved from Department of Finance: http://www.dof.gov.ph/?p=9566

Francisco, K. I. (2015, February 2). CDS Graphs. (Exchange of Emails with I. Aberia)

Montecillo, P. G. (2015, January 5). Demand for PH Bonds Seen to Rise. Retrieved from Inquirer.net: http://business.inquirer.net/186104/demand-for-ph-bonds-seen-to-rise

Official Gazette. (2014). Philippine Credit Ratings. Retrieved from Gov.ph: http://www.gov.ph/report/credit-ratings/

Project Management Office. (2015). Meeting Minutes. Weekly Meetings (pp. 1-2). Manila: Strenthening Debt Management Project.

Research Service. (2013). Annual Report. Manila: Bureau of the Treasury.

Statistical Data Analysis Division. (2014, November 30). Debt Indicators. Retrieved from Bureau of the Treasury: http://www.treasury.gov.ph/wp-content/uploads/2015/02/mo_debtindicator.pdf

Sub-Project Team 1. (2013). Meeting Minutes. Strengthening Debt Management Project (p. 3). UNCTAD-Bureau of the Treasury.

 

[1] Earlier, in 2009, BTr and UNCTAD completed a technical cooperation undertaking that consisted largely of DMFAS-related trainings for BTr personnel. Results of this undertaking suggested the need for a more comprehensive provision of inputs for BTr as it faced greater challenges in the performance of its debt management functions.

[2] Please see Logframe [Annex 4.2] for complete list of Performance Indicators.

[3] “On track” means pending activities are expected to be fully completed by December 2018.

[4] The project also supported a number of Department of Finance (DoF) officials and staff in some CB/training activities.

[5] In a Philippine Daily Inquirer article, Moody’s was quoted as saying that “the Philippines’ macroeconomic credentials are strong.” Moody’s cited the economy’s economic growth prospects, improving fiscal and government debt ratios [emphasis supplied] and healthy external position—which were the main reasons for the successive credit-rating upgrades the country received.” (Montecillo, 2015) More recently, S&P has revised the country’s credit outlook from “Stable” to “Positive,” suggesting further upgrade in the future. (Luchi de Guzman, 2018)

[6] https://theasset.com/awards

[7] A CDS is a particular type of swap designed to transfer the credit exposure of fixed income products between two or more parties. It is the most common form of credit derivative and may involve municipal bonds, emerging market bonds, mortgage-backed securities or corporate bonds. A credit default swap is also often referred to as a credit derivative contract. (Source: https://www.investopedia.com)

[8] This Project Document Amendment was signed by TOP Roberto B. Tan for the BTr and Adnan T. Issa for UNCTAD on 25 January 2016.

[9] For 1 participant, except for TCP

[10] Includes provision for extra 2 days

[11] Local DSA and catering for 4 batches at 30-45 pax per batch

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