April Annual Report of the e-asia and Knowledge Partnership Fund 2014

April 2015 Annual Report of the e-asia and Knowledge Fund 2014

ABBREVIATIONS ADB Asian Development Bank ASEAN Association of Southeast Asian Nations BIMP-EAGA Brunei-Indonesia-Malaysia-Philippines East Asia Growth Area CDD community-driven development CDM capacity development mechanism CDTA capacity development technical assistance DMC developing member country EAKPF e-asia and Knowledge Fund GOK Government of the Republic of Korea ICT information and communication technology ICTWG information and communication technology working group ITS intelligent transport system MDGs Millennium Development Goals MFF multitranche financing facility OCO Office of Cofinancing Operations PATA policy and advisory technical assistance PPP public private partnership RC review committee RDTA research and development technical assistance RSDD Regional and Sustainable Development Department SASEC South Asia Subregional Economic Cooperation SSTA small-scale technical assistance TA technical assistance NOTE In this report, $ refers to US dollars In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

i CONTENTS EXECUTIVE SUMMARY... 1 I. INTRODUCTION... 2 II. BACKGROUND... 2 A. OVERVIEW... 2 B. FUND ADMINISTRATION... 3 C. MONITORING AND EVALUATION... 3 III. PROCESSING OF TA PROPOSALS IN 2014... 4 A. GOK ENDORSEMENTS IN 2014... 4 B. PORTFOLIO DISTRIBUTION OF TA PROPOSALS IN 2014... 5 IV. HIGHLIGHTS OF TA IMPLEMENTATION... 6 A. APPROVAL OF TA PROPOSALS IN 2006-2014... 6 B. PORTFOLIO DISTRIBUTION OF TA PROPOSALS IN 2006-2014... 8 C. STATUS OF IMPLEMENTATION... 11 TABLES Table 1. GOK-endorsed TA proposals under EAKPF (2014)... 4 FIGURES Figure 1. Types of GOK-endorsed TAs (2014)... 5 Figure 2. Geographical Distribution of GOK-endorsed TAs (2014)... 5 Figure 3. Sector Distribution of GOK-endorsed TAs (2014)... 6 Figure 4. Fund Window of GOK-endorsed TAs (2014)... 6 Figure 5. Status of Implementation of ADB-approved TAs (2014)... 6 Figure 6. GOK Endorsements and ADB Approvals per Year (2006 2014)... 7 Figure 7. ADB-approved Projects per TA Type (2006-2014)... 8 Figure 8. ADB-approved TAs per Geographical Distribution (2006-2014)... 9 Figure 9. Sector Distribution of ADB-approved TAs (2006-2014)... 10 Figure 10. Accumulated No. of TAs per Fund Window (2006-2014)... 11 Figure 11. Fund Window Distribution of TA per Approval Year (2006 2014)... 11 Figure 12. ADB-approved Projects per Status of Implementation (2006-2014)... 12 BOX STORIES Box 1. Capacitating e-governance in Myanmar... 7 Box 2. Increasing Awareness on Community-Driven Development... 13 APPENDIX Appendix 1: Status of Grant Contribution (as of 31 December 2014)... 15 Appendix 2: Statement of TA Expenditures as of 31 December 2014... 16 Appendix 3: Project Processing Procedure for the E-Asia and Knowledge Fund... 25 Appendix 4: Application Templates... 27 Appendix 5: E-Asia and Knowledge Fund Annual Project Status Report... 35

1 EXECUTIVE SUMMARY The e-asia and Knowledge Fund (EAKPF) aims to contribute to poverty reduction and foster the economic and social development process in ADB's developing member countries (DMCs) by supporting technical assistance (TA) projects that promote and utilize information communication technology (ICT) (e-asia program) and help facilitate the creation and sharing of information and knowledge (Knowledge program). The e-asia and Knowledge Fund (the Fund) was established under the Asian Development Bank (ADB) on 30 June 2006, with a contribution of $20 million from the Government of the Republic of Korea (GOK). The GOK has since made additional contributions to the Fund: $6.37 million in December 2010, $6 million in October 2011, $7.85 million in November 2012, $8 million in November 2013, and $8 million in November 2014. To date, the total Fund contribution has reached $56.22 million. In 2014, seven new TA proposals were submitted to the Government of Korea (in batches), six of which were endorsed as of end-2014. Four proposals were under the e-asia program and three under the Knowledge program. All proposals were capacity development TAs (CDTAs), which targeted public sector management, education, transport and information and communication technology (ICT), multiple sectors, and energy. In 2014, two TAs approved for implementation in Q4 have yet to start, four were at the inception stage, and one was already in mid-term completion. From 2006 to 2014, a total of 97 TA proposals have been submitted for funding, of which 81 were endorsed by GOK, 15 were either disapproved or cancelled, and 1 under consideration. Of the endorsed proposals, 77 were approved for implementation by ADB, 2 were still awaiting approval, and 2 were dropped, as of 31 December 2014. Among the completed TAs, 8 were rated as highly successful, 18 were rated successful, while 7 were partly successful.

2 I. INTRODUCTION 1. The e-asia and Knowledge Fund (the Fund) was established under the Asian Development Bank (ADB) in June 2006, with a contribution of $20 million from the Government of the Republic of Korea (GOK), represented by the Ministry of Strategy and Finance and by the Export-Import Bank of Korea. The Annual Report (the Report), prepared by ADB s Regional and Sustainable Development Department (RSDD) in collaboration with ADB s Office of Cofinancing Operations, aims to describe and review the progress of the Fund s operations for the period of January to December 2014. This is in compliance with the reporting requirements stipulated in the ADB Board Paper and the ADB GOK Channel Financing Agreement. 1 The GOK has since provided a total of $56,220,000 to the Fund. The Fund s status of grant contribution and statement of expenditure as of 31 December 2014 are in Appendices 1 and 2. II. BACKGROUND A. Overview 2. The meaningful use of ICTs and strategic means of creating and disseminating knowledge are creating new opportunities for human development, poverty reduction, economic growth, and effective governance. The e-asia and Knowledge Fund (the Fund) was created in response to a widening digital divide, or the difference between those who have access to ICT and those who do not, and the growing recognition of the importance of building knowledge to achieve development objectives. The Fund aims to contribute to poverty reduction and foster the economic and social development process in ADB's developing member countries (DMCs) through its two windows: the e-asia program and the knowledge partnership program. Projects from all DMCs of ADB are eligible for funding from the Fund. 3. The e-asia Program aims to contribute to poverty reduction and economic and social development in DMCs through ICT. In support of the ADB ICT strategy 2, the e-asia program provides financing for: (i) ICT-related activities, including TAs; (ii) studies, research, and analytical work; (iii) capacity building and developing human resources through education and training; (iv) disseminating, networking, and cross-learning (e.g., policy consultations, seminars and workshops, conferences, publications, and websites); and (v) piloting innovative approaches to promote ICT. 4. The Knowledge Program aims to reduce poverty and foster economic and social development in DMCs by sharing information and knowledge. The knowledge partnership program is also expected to promote the facilitation of information and knowledge sharing and increase the effectiveness of poverty reduction activities. 5. Under Strategy 2020, ADB is also mandated to develop, mobilize and apply knowledge solutions from which it will distill and disseminate lessons; and to distribute knowledge that will achieve benefits for the poor. ADB s knowledge management directions and action plan (2013-2015) 3 focuses on: prioritizing and implementing knowledge solutions; enriching the quality of 1 2 3 ADB. 2006. Republic of Korea e-asia and Knowledge Fund. Manila. ADB. 2003. Toward e-development in Asia and the Pacific: A Strategic Approach for Information and Communication Technology. Manila. ADB. 2013. Knowledge Management Directions and Action Plan (2013-2015): Supporting Finance ++ at the Asian Development Bank. Manila.

ADB and DMCs knowledge capabilities for development effectiveness; advancing ADB s knowledge assets, information systems, and communications; and empowering and resourcing high-quality knowledge solutions. 6. The knowledge partnership program includes: (i) policy advice/dialogue and TA involving the use of experts in economic development and capacity building; (ii) capacity building and institutional development in DMCs, including workshops, vocational training, and long and short training and learning courses; (iii) publications that will disseminate successful development knowledge to developing countries in the region; (iv) studies, research, and analytical work; (v) projects on reforming government, improving governance in the business and financial sector, and privatizing state-owned enterprises; and (vi) disseminating, networking, and cross-learning (e.g., policy consultations, seminars, workshops, conferences). 3 B. Fund Administration 7. RSDD is responsible for the technical and implementation aspects of the Fund while the Office of Cofinancing Operations is responsible for general and financial aspects of the Fund. The fund website 4 provides some information on the Fund including the guidelines and approved projects. 8. To ensure the quality of projects under the Fund, the TA funding proposal is reviewed by specialists from RSDD or ADB s Sector and Thematic Groups 5 (formerly Communities of Practice or CoPs). In particular, RSDD carries out the following functions: (i) consultation of proposal requests with project officials, (ii) liaising with the ADB s specialists for review on project proposals, and (iii) corresponding with GOK for proposals. 9. Criteria. To be eligible for funding, proposals should: (i) be conceptually, programmatically, and procedurally aligned with the ADB country partnership strategy (CPS) and the regional cooperation strategy (RCS); (ii) be in line with the ADB s ICT policy and strategies 6, particularly for ICT projects; (iii) be discussed with key country stakeholders; (iv) shall use expertise from the Asia and Pacific region to the extent possible; (v) encourage contributions, either in kind or in cash, from DMCs that will benefit from activities financed under the Fund; and (vi) encourage to collaborate with international development partners; and/or may provide cofinancing opportunities with the Republic of Korea and other funding agencies if the Fund is used for preparing investment projects. 10. Approval Process. A TA funding proposal consists of: (i) the cleared TA concept paper following ADB s TA processing procedure, (ii) the design and monitoring framework, and (iii) the itemized cost estimate. The detailed processing procedure is described in Appendix 3. C. Monitoring and Evaluation 11. Progress in the projects has been monitored through the submission of annual progress reports by the project officers. Refer to Appendix 5 for the template of the annual status report. 4 http://www.adb.org/site/funds/funds/e-asia-and-knowledge-partnership-fund 5 http://www.adb.org/about/knowledge-management/sector-thematic-groups-adb 6 ADB issued its ICT policies and strategies through its publication of Toward E-development in Asia and the Pacific in 2003. See http://www.adb.org/documents/toward-e-development-asia-and-pacific-strategic-approach-ict

4 A. GOK Endorsements in 2014 III. PROCESSING OF TA PROPOSALS IN 2014 12. In 2014, seven new TA proposals were submitted to the Government of Korea (in batches), six of which were endorsed and one is under consideration, as of 31 December 2014. See Table 1 below for the details of the TA proposals submitted in 2014. Table 1. TA proposals submitted to GOK (2014) TA Number TA Type Scope Sector Fund Window TA Title Objective/ Outcome TA 8836 R-CDTA REG Multisector (Transport, agriculture, natural resources and rural development, Energy, Finance, Health) Knowledge Building Capacity for Enhanced Connectivity in Southeast Asia Greater capacity of government officials in the region to develop and implement projects, programs, and policies in support of MPAC connectivity pillars. TA 8813 R-CDTA REG Information and communication technology e-asia ICT for Development Initiative Facility for Asia and the Pacific Increased governments capacity to identify and prepare ICTD investments in DMCs. TA 8695 CDTA PHI Education e-asia Teach for the Philippines A scalable and sustainable ICTbased pre- and in-service training program that enhances the competencies of elementary school teachers. TA 8703 R-CDTA (SSTA) REG Information and communication technology Knowledge Enhancing Private Grant Mobilization Enhanced ADB s capacity for resource mobilization from private donors to support ADB s development activities. TA 8686 R-CDTA REG Public sector management e-asia ICTs for Social Protection in the Asia Pacific Region Increased ICT-literacy and capacity development among policy makers and government officials implementing social protection programs in DMCs. GOK endorsed but pending ADB approval as of 31 Dec 2014 CDTA PHI Public sector management e-asia Distance Learning Program for Real Property Tax Generation LGU appraisers and assessors as well as BLGF national and regional offices apply the competencies gained in participating in a tested distance learning program when updating real property values and collecting real property tax revenues. Pending GOK and ADB approval as of 31 Dec 2014 CDTA BAN Energy Knowledge Enabling Poor Women s Benefits from enhanced access to energy in Hatiya Island Efficient electricity services maximizing inclusive access to energy resources and services. Note: ADB = Asian Development Bank; BAN = Bangladesh; BLGF = Bureau of Local Government Finance; CDTA = Capacity Development Technical Assistance; DMC = Developing member country; ICTD = Information and Communication Technology for Development; LGU = Local government unit; MPAC = Master Plan for ASEAN Connectivity; PHI = Philippines; REG = Regional; R-CDTA = Regional Capacity Development Technical Assistance; TA = Technical Assistance. Sources: ADB TA concept paper from eoperations and project documents from www.adb.org; ADB Statement of TA Expenditures EAKPF as of 31 December 2014; Progress reports submitted by ADB project officers for the period January to December 2014.

5 B. Portfolio Distribution of TA proposals in 2014 13. Technical Assistance Type. All seven TA proposals supported capacity development, one of which was a small-scale technical assistance (SSTA). Figure 1 shows the type of TAs proposed for funding approval in 2014. 14. Geographical Distribution. Four GOK-endorsed TAs were regional in scope, two were for implementation in the Philippines, and one in Bangladesh. Figure 2 shows the geographical scope of TA proposals submitted to GOK in 2014. 15. Sector Distribution. Two TA proposals focused on public sector management, and another two on transport and ICT. 7 One TA proposal each supported projects in education, multiple sectors, and energy. Figure 3 shows the sector distribution of TA proposals submitted to GOK in 2014. 16. Fund Windows. Four GOK-endorsed TAs secured funding under the e-asia program for $2,000,000 while three got funding from knowledge partnership program worth $1,225,000. Figure 4 shows the fund window distribution of TA proposals submitted to GOK in 2014. Figure 1. Types of TA proposals (2014) Figure 2. Geographical distribution of TA proposals (2014) PHI 2 29% CDTA 7 100% REG 4 57% BAN 1 14% Source: TA concept papers submitted to RSDD and GOK. 7 In 2014, ICT was upgraded to sector status within ADB (previously, ICT was attached to the transport sector). However, the 2014 EAKPF annual report still uses Transport and ICT, as ADB s project database transitions to the new sector classification.

6 Figure 3. Sector distribution of TA proposals (2014) Figure 4. Fund Window of GOK-endorsed TAs (2014) Public sector mgmt 2 29% Transport and ICT 2 29% Energy 1 14% Multisector 1 14% Education 1 14% Knowledge 3 43% e-asia 4 57% Source: TA concept papers submitted to RSDD and GOK. IV. HIGHLIGHTS OF TA IMPLEMENTATION 17. In 2014, two TAs approved in Q4 have yet to start, four were at the inception stage, and one was at mid-term completion. Figure 5 below shows the status of implementation of ADBapproved projects in 2014. Figure 5. Status of TA Implementation (2014) Mid-term 14% Inception 57% Recent Approval 29% Source: TA progress reports received by RSDD as of end-february 2015. A. Approval of TA proposals in 2006-2014 18. A total of 97 TA proposals have been submitted for funding, of which 81 were endorsed by GOK, 15 were either disapproved or cancelled, and 1 under consideration, as of 31 December 2014. Of the endorsed proposals, 77 were approved for implementation by ADB, 2 were still awaiting approval, and 2 were dropped (see Appendix 2 for a detailed list of ADBapproved projects 2006-2014). Figure 6 below shows the number of TA proposals submitted to GOK, and those that were endorsed and disapproved over the past eight years.

7 Figure 6. TA proposals submitted for funding (2006 2014) 16 14 15 15 15 15 14 No. of TA proposals 12 10 8 6 4 2 12 6 4 11 2 9 8 3 12 12 11 10 2 2 1 1 7 6 0 2006-07* 2007-08* 2008-09* 2009-10* 2011 2012 2013 2014 Submitted to GOK Endorsed by GOK Disapproved by GOK Notes: ADB = Asian Development Bank; GOK=Government of Korea; * 2006-07 covers July 2006 to June 2007; 2007-08 covers July 2007 to June 2008; 2008-09 covers July 2008 to June 2009; 2009-10 covers July 2009 to December 2010. Source: TA proposals submitted between July 2006 and December 2014. 19. On the average, GOK took 41 days or about 1.5 months to endorse TA proposals. Meanwhile, ADB took an average of 139 days or 4.5 months to approve TAs for implementation. Box 1. Capacitating e-governance in Myanmar For decades, Myanmar was a country in isolation. But in 2011, the government initiated a wave of political, social and economic reforms. As the country transitions to a democracy and a market economy, focus is on poverty reduction 8 and economic progress. 9 In 2012, ADB reengaged Myanmar, targeting inclusive growth, access and connectivity, and human and institutional capacities. One of the key areas where Myanmar needs support is in the adoption of ICT as an enabler of more effective and efficient governance or e-governance. In 2013, the government of Myanmar asked ADB to formulate a multipronged technical assistance to integrate approaches for the development of government applications and online services, and for capacitating these with human and institutional capital. The TA will contribute to these desired outcomes: unified planning and execution, capacity and capability building, and incentivized guidance for new government to citizen (G2C), government to business (G2B), government to government (G2G), and government to employee (G2E) systems and services. The Design of e-governance Master Plan and Review of Information and Communication Technology Capacity in Academic Institutions project a consists of three interrelated outputs: (i) an e-governance master plan and related action items; (ii) a sustainability action plan for ICT capacity enhancements in identified ICT academic institutions; and (iii) demonstration initiatives and knowledge transfer in ICT academic institutions. It hopes to help Myanmar leapfrog the stages of e-governance maturity b through the following activities. Masterplan. Develop an integrated e-governance framework for ministry-specific e-governance application systems, common and shared ICT components across ministries, skills development, institutional strengthening, policy 8 9 A sizeable proportion of the population, or 25.6%, lives below the national poverty line. The government has launched an array of reforms touching the exchange rate, tax collection, monetary policy, public expenditure, business and investment, and the agriculture, financial, telecommunications, and trade sectors.

8 development, and countrywide e-governance organization. Enhancement. Incorporate professional certifications into the undergraduate ICT curricula of four universities covered, establish incubation centers within the universities, and pursue international accreditation and recognition. The curricula can also integrate training in contemporary ICT platforms and languages. It also aims to tighten interactions with the local ICT industry. Demonstration. Cutting-edge technology for speech recognition and speech biometrics in the human computer interface discipline has been identified for demonstration in Yangon Technological University. Knowledge gained in voice-based technology can help populations where ICT usage and adoption are constrained. The TA commenced in March 2014 and will run until July 2015. Notes: a ADB. 2013. Design of e-governance Master Plan and Review of Information and Communication Technology Capacity in Academic Institutions. Manila; b See Jungwoo Lee. 2010. 10 Year Retrospect on Stage Models of e-government: A Qualitative Meta- Synthesis. Government Information Quarterly. Vol. 27(3), pp. 220 230. Source: Based on a draft knowledge showcase on Capacitating e-governance in Myanmar by Arun Ramamurthy and Olivier Serrat. B. Portfolio Distribution of TA proposals in 2006-2014 20. Technical Assistance Type. As of end-2014, 49 of the TA proposals approved by GOK (60% of total) were classified as capacity development technical assistance (CDTA) (19 country-specific, 30 regional). Twenty (25% of total) were categorized as policy and advisory technical assistance (PATA) (11 country-specific, 9 regional), nine (11% of total) as research and development technical assistance (RDTA) (all regional), and three (4% of total) as project preparatory technical assistance (PPTA) (1 country-specific, 2 regional). See Figure 7 for the type of approved TA proposals in 2006-2014. Figure 7. GOK-endorsed proposals per TA type (2006-2014) 10 Source: Approved TA proposals between July 2006 and December 2014. 21. Geographical Distribution. About 62% of all approved TA proposals in 2006-2014 were regional in scope. In terms of country specific projects, the Philippines (7%) has the most 10 The types of TAs include: (i) Project Preparation Technical Assistance (PPTA) for preparing projects for financing by ADB and/or other external sources; (ii) Policy and Advisory Technical Assistance (PATA) for financing sector-, policy- and issues-oriented studies; (iii) Capacity Development Technical Assistance (CDTA) for undertaking institutional and organizational capacity development and to support the implementation, operation, and management of ADB-financed projects; (iv) Research and Development Technical Assistance (RDTA) for strengthening ADB s role as knowledge platform to address development issues of a global or Asia and Pacific wide nature. See ADB s 2010 Technical Assistance Disbursement Handbook (http://www.adb.org/documents/handbooks/tadisbursement/tadisbursement.pdf). Some of the TAs approved before 1 January 2009 were classified according to the above definitions by the Fund manager.

number, followed by Mongolia (6%), and Cambodia, India, Indonesia, Thailand, and Uzbekistan (2% each). Figure 8 shows the geographical distribution of approved TAs in 2014, and between 2006 and 2014. 22. Sector Distribution. Public sector management (28%) had the most number of ADBapproved TAs from 2006 to 2014, followed by multisector (21%) and finance (14%). Every year since 2007, at least one proposal on public sector management gets endorsed by GOK and approved by ADB. This is the same with multisector TAs, which gets GOK endorsement and ADB approval every year since 2008. Figure 9 shows the sector distribution of TAs approved in 2006-2014. Figure 8. GOK-endorsed TA proposals per Geographical Distribution (2014; 2006-2013) 9 REG PHI MON INO UZB THA IND CAM VIE TAJ PRC NEP MYA LAO KGZ BHU BAN ARM 4 2 5 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 4 46 2014 2006-2013 0 10 20 30 40 50 60 No. of GOK-endorsed TAs Source: Approved TA proposals between July 2006 and December 2014.

10 Figure 9. Sector Distribution of ADB-approved TAs (2006-2014) Notes: The 2014 annual report still uses Transport and ICT, as ADB s project database transitions to the new sector classification. Source: Approved TA proposals between July 2006 and December 2014. 23. Fund Windows. The distribution of TAs approved under each fund window has been varied. In June 2006 until June 2008, more TAs had been approved under the e-asia program. This changed in July 2008 when more approvals were seen under the knowledge partnership program a trend that persisted until 2012. In 2013 and 2014, there were more TAs under the e-asia program. As of 31 December 2014, there were 36 TAs (44% of total) approved under e- Asia, amounting to $16.92 million and 45 TAs (56% of total) under knowledge partnership, amounting to $19.74 million. Figure 10 shows the accumulated number of TA approvals per fund window from 2006 to 2014. Figure 11 illustrates the trend of the fund window distribution of the approved TAs since 2006. 24. There were 15 TA proposals submitted to, but were disapproved, by GOK. About 86% of the proposals were CDTAs and the rest was PATA. Over 65% was under the e-asia program while the rest was under the knowledge partnership program, with a total proposed amount of $4.4 million. Half of the disapproved TA proposals was country-specific, and the other half was regional.

11 Figure 10. Accumulated No. of TAs per Fund Window (2006-2014) Knowledge 45 56% e-asia 36 44% Source: Approved TA proposals between July 2006 and December 2014. Figure 11. GOK-endorsed TA proposals per Fund Window (2006 2014) 14 12 12 No. of ADB-approved Projects 10 8 6 4 2 5 5 5 1 6 3 3 4 10 6 5 5 5 4 2 0 2006-07* 2007-08* 2008-09* 2009-10* 2011 2012 2013 2014 Year of Approval e-asia Knowledge Note: * 2006-07 covers July 2006 to June 2007; 2007-08 covers July 2007 to June 2008; 2008-09 covers July 2008 to June 2009; 2009-10 covers July 2009 to December 2010. Source: Approved TA proposals between July 2006 and December 2014. C. Status of Implementation 25. Of the 77 EAKPF-funded TAs as of 31 December 2014, 43 (56% of total) were completed and. Of the completed TAs, 18 (42%) were rated successful, eight (19%) were highly successful, and seven (16%) were partly successful. Ten TAs did not have a completion report on the adb.org database as of end-2014. Meanwhile, six TAs (8%) have completed implementation of activities, but are not as of end-2014. Eight TAs (10% of total) were nearing completion while twelve (15%) were on their mid-term of

implementation 11. Six TAs (8% of total) were at the inception stage and two (3%) were just recently approved (within Q4 2014). One TA approved in December 2012 no longer required funding due to minor changes in the TA scope. 12 See Figure 12 for the distribution of ADBapproved TAs per status of implementation and Figure 13 for the rating of completed TAs. Figure 12. EAKPF-funded TAs per Status of Implementation (2006-2014) 12 TA 100% completed & 43 Mid-term 12 Near completion 8 Inception TA implementation completed 6 6 Recent Approval 2 0 10 20 30 40 50 No. of Projects Source: TA progress reports submitted by project officers to Fund manager as of 31 December 2014. 11 TA 8248-UZB: Strengthening Governance and Improving Local Government Capacity for Results Based Service Delivery. On 29 September 2014, the director of CWPF approved the minor changes in TA scope and implementation arrangements leading to reduced TA inputs. As a result, TA surplus in the amount of $340,000 was cancelled. Thus, the approved $400,000 from EAKPF was no longer required. 12 TA 8248-UZB: Strengthening Governance and Improving Local Government Capacity for Results Based Service Delivery. On 29 September 2014, the director of CWPF approved the minor changes in TA scope and implementation arrangements leading to reduced TA inputs. As a result, TA surplus in the amount of $340,000 was cancelled. Thus, the approved $400,000 from EAKPF was no longer required.

13 Figure 13. Rating of Completed TAs (as of 31 December 2014) Source: TA completion reports as of 31 December 2014. 26. Based on the completion reports of closed TAs, a number of success factors could be identified. Governments who implement the TAs should have a strong sense of ownership of their reforms, especially when the TAs involve business process reengineering or overhauling the way things are done. Intensive capacity-building activities among stakeholders is necessary, particularly for information technology (IT) projects that introduce new business processes in day-to-day operations. Capacity development projects would be more effective and relevant if those were demand-driven and custom-designed to the target beneficiaries. In terms of project management, the TAs with well thought-out designs were implemented successfully without delays. Getting the appropriate consultants with both the right expertise and field experiences also played an important role in the successful implementation of projects. Box 2. Increasing Awareness on Community-Driven Development The Sharing Knowledge on Community-Driven Development in Asia and the Pacific project (TA 7543-REG) builds on the previous work of Supporting Community-Driven Development in Developing Member Countries project (TA 6400-REG) that improved ADB s institutional readiness to support community-driven development (CDD) a projects. The succeeding TA aimed to strengthen the DMC capacity through supporting knowledge sharing on various CDD models and implementation experiences from the region. Its outcome includes increased awareness and improved readiness of DMCs to design and implement community development projects. In order to achieve this, the TA supported the following outputs: (i) studies and research on CDD approach in service delivery, (ii) knowledge sharing through workshops and publications, (iii) establishment of a community development learning hub, and (iv) establishment of a community development network. TA implementation commenced in October 2010, but was delayed for 18 months due to two consecutive handovers to new project officers. Consulting services were extended but without additional cost to the TA. The project was completed in April 2013. The TA contributed to increased awareness and improved readiness of DMCs on the CDD approach through the completion of the following outputs: (i) five country case studies and a synthesis report; (ii) seven knowledge events and five publications, and (iii) the CDD learning network. It produced four country/thematic case studies: (i) the KALAHI CIDSS Project in the Philippines, b (ii) Neighborhood Upgrading and Shelter Sector Project in Indonesia, c (iii) CDD Pilot Project in the PRC, d and (iv) Saemaul Undong Movement in the Republic of Korea. e An additional booklet

on the Urban Governance and Infrastructure Improvement Project (UGIIP) in Bangladesh f was also published. The TA conducted seven knowledge events, g which far exceeded the initial target of one e-learning event and two international workshops. It also provided interactive and sustainable solution in establishing a CDD network by using social media, such as Facebook, and by creating a Yahoogroup and a Scribd account, which serves as a repository of the country studies and workshop/conference proceedings. The TA was completed and closed in July 2013, and rated as successful. Notes: a The World Bank s 2003 Poverty Reduction Strategy Paper Sourcebook defines CDD as an approach that gives control over planning decisions and investment resources for local development projects to community groups. See World Bank. 2003. The World Bank PRSP Sourcebook. Washington, DC (Chapter 9 Community Driven Development). b ADB. 2012. The KALAHI-CIDSS Project in the Philippines: Sharing Knowledge on Community-Driven Development http://www.adb.org/publications/kalahi-cidss-project-philippines. c ADB. 2012. The Neighborhood Upgrading and Shelter Sector Project in Indonesia. http://www.adb.org/publications/neighborhoodupgrading-and-shelter-sector-project-indonesia. d ADB. 2012. The CDD Pilot Project in the People s Republic of China. http://www.adb.org/publications/cdd-pilot-project-peoplesrepublicchina. e ADB. 2012. The Saemaul Undong Movement in the Republic of Korea: Sharing Knowledge on Community-Driven Development. http://www.adb.org/publications/saemaul-undong-movement-republic-korea. f ADB. 2012. The Urban Governance and Infrastructure Improvement Project in Bangladesh. http://www.adb.org/publications/urbangovernance-and-infrastructure-improvement-project-bangladesh. g Participating countries for country case studies, workshop/conference, and learning visit include: Bangladesh, Cambodia, People s Republic of China, Indonesia, Republic of Korea, Kyrgyz Republic, Lao People s Democratic Republic, Federated States of Micronesia, Mongolia, Myanmar, Nepal, Pakistan, Philippines, Papua New Guinea, Sri Lanka, Timor Leste, and Viet Nam. Source: ADB. 2013. Technical Assistance Completion Report: Sharing Knowledge on Community-Driven Development in Asia and the Pacific. Manila. 27. Of the 77 ADB-approved TAs, 34 or 44% reported having some form of participation by Koreans 13. This mostly involved such activities as hiring of international consultants from universities or firms, getting resource speakers for knowledge-sharing activities, and organizing study tours to Korea for DMC participants. 28. Finally, the EAKPF continued supporting co-financing projects. It provided co-financing to 40 TAs amounting to $67,896,000, of which 72% was co-financed by other funding sources. The growing amount of co-financed projects is encouraged according to the ADB s finance ++ approach 14. This is also envisioned to further raise awareness of the Fund among ADB staff and stakeholders. 14 13 Beginning 2013, ADB project officers were requested to document the involvement of Korean institutions and individuals in the implementation of TAs supported by the Fund. 14 In this approach, ADB need to move beyond its traditional role of sole-financier to offer a full Finance ++ menu finance leveraging cofinance plus knowledge.

15 Appendix 1: Status of Grant Contribution (as of 31 December 2014)

TA/Loan Number TA 8836 Project Title Building Capacity for Enhanced Connectivity in Southeast Asia Appendix 2: Statement of TA Expenditures as of 31 December 2014 e-asia and Knowledge Fund (Amount in US$) Scope Approval Date by ADB Fund Window Amount Cumulative disbursement as of 31 December 2014 Balance (Amount less Cumulative Disbursement) Status/Remarks REG 18-Dec-14 e-asia 500,000-500,000 Recent Approval 16 Appendix 2 TA 8813 ICT for Development Initiative Facility for Asia and the Pacific REG 16-Dec-14 e-asia 500,000-500,000 Recent Approval TA 8695 Teach for the Philippines PHI 7-Aug-14 e-asia 500,000 135,000 365,000 Inception TA 8703 TA 8686 Enhancing Capacity to Mobilize Private Grant Cofinancing ICTs for Social Protection in the Asia Pacific Region REG 5-Aug-14 e-asia 225,000-225,000 Inception REG 11-Jul-14 e-asia 500,000 71,407.91 428,592.09 Inception TA 8656 Malaria and Dengue Risk Mapping and Response Planning in the Greater Mekong Subregion REG 26-May-14 e-asia 417,000 417,000 - Inception TA 8620 Economic Analysis for Gender and Development REG 14-Feb-14 Knowledge 500,000 149,299.52 350,700.48 Mid-term TA 8589 Supporting the Operationalization of Community-Driven Development in Developing Member Countries REG 16-Dec-13 e-asia 500,000 58,702 441,298 Mid-term

TA 8612 TA 8520 The Asia Leadership Program on Sustainable Development and Climate Change (Phase II) and the Asia Women's Leadership Program (Phase I) Asia Pacific Public Electronic Procurement Network REG 13-Dec-13 Knowledge 500,000 274,090 225,910 Mid-term REG 2-Dec-13 e-asia 500,000 19,997 480,003 Mid-term 17 Appendix 2 TA 8487 ICT for Better Education Services in Tonga and Solomon Islands TON/ SOL 21-Oct-13 e-asia 500,000 43 499,957 Inception TA 8483 Asia Energy Efficiency Accelerator REG 10-Oct-13 Knowledge 500,000 13,583 486,417 Mid-term TA 8398 TA 8396 Design of e-governance Master Plan and Review of Information and Communication Technology Capacity in Academic Institutions Mid-term Review of the Republic of Korea e-asia and Knowledge Fund MYA 4-Jul-13 e-asia 500,000 148,750 351,250 Near completion REG 4-Jul-13 e-asia 500,000 273,162 226,838 Near completion TA 8370 Establishment of the International Public Asset Management Company Forum (IPAF) REG 23-May-13 Knowledge 500,000 137,122 362,878 Mid-term TA 8260 e-government for Effective Public Management UZB 17-Dec-12 e-asia 400,000-400,000 Inception TA 8283 Improving Public Administration and Services Delivery through e-solutions BAN 14-Dec-12 e-asia 500,000 24,771 275,229 Mid-term

TA 8248 TA 7872 Strengthening Governance and Improving Local Government Capacity for Results Based Service Delivery Learning from e-learning: Testing Intelligent Learning Systems in South Asia UZB 10-Dec-12 e-asia 400,000-400,000 Funding no longer needed due to minor change in scope SRI/ BAN 27-Nov-12 e-asia 500,000 242,275 257,725 Mid-term 18 Appendix 2 TA 8225 GMS Phnom Penh Plan for Development Management Phase V REG 19-Nov-12 Knowledge 500,000 357,444 142,556 Near completion TA 8214 Implementation of Prudential Standards in Islamic Finance REG 13-Nov-12 Knowledge 250,000-250,000 Mid-term TA 8164 Strengthening Knowledge- Based Economic and Social Development PHI 14-Sep-12 Knowledge 500,000 87,463 412,537 Mid-term TA 8153 Policies for Industrial and Service Diversification in Asia in the 21st Century REG 7-Sep-12 Knowledge 500,000 381,938 118,062 Near completion TA 8101 Implementation of Sustainable Transport in Asia and the Pacific - Intelligent Transport Systems (ITS) for Better Urban Transport (Subproject 3) REG 27-Jun-12 e-asia 300,000 142,507 157,493 TA 100% completed and TA 6509 Minimizing Foreign Exchange Settlement Risk in the ASEAN+3 Region: Support for Group of Experts REG 18-May-12 Knowledge 450,000 324,751 125,249 Near completion TA 8073 Consumer Protection in a Competitive Electricity Market with Open Access PHI 16-Apr-12 Knowledge 500,000 90,043 409,957 TA 100% completed and TA 8033 Supporting Public Management through e- Governance Capacity Development REG 23-Dec-11 e-asia 500,000 207,164 292,836 TA implementation completed (Financially not yet closed)

TA 7971 TA 7939 Government Bond Market Development Water Supply and Sanitation Sector Development Project in Indonesia MON 14-Dec-11 Knowledge INO 25-Nov-11 Knowledge 500,000 396,084 103,916 TA implementation completed (Financially not yet closed) 500,000 344,034 155,966 TA 100% completed and 19 Appendix 2 TA 7911 Broadening the Scope of Asian Bond Markets Initiative under ASEAN+3 REG 11-Nov-11 Knowledge 145,000 102,776 42,224 TA 100% completed and TA 7903 Regional Forum on Public Sector Accounting REG 2-Nov-11 Knowledge 500,000 210,653 289,347 Mid-term TA 7898 Developing the Services Sector as a an Engine for Inclusive Growth REG 25-Oct-11 Knowledge 500,000 383,127 116,873 TA 100% completed and TA 7881 Developing a Revenue Administration Management Information System (RAMIS) BHU 06-Oct-11 e-asia 500,000 255,761 (131,761) Mid-term TA 7868 Republic of Korea-ADB Conference on Knowledge Sharing and Development Effectiveness in the Asia and Pacific Region REG 21-Sep-11 Knowledge 124,000 88,448 35,552 TA 100% completed and TA 7864 TA 6438 Financial Regulatory Reform in Asia Implementation of the Technical Support Facility under the Carbon Market Initiative REG 20-Sep-11 Knowledge REG 16-Sep-11 Knowledge 500,000 353,551 146,449 TA implementation completed (Financially not yet closed) 500,000 56,510 443,490 TA 100% completed and TA 7744 Asia-Pacific Community of Practice on Managing for Development Results - From Concept to Practice REG 8-Sep-11 Knowledge 500,000 499,891 109 TA 100% completed and TA 7431 GMS Phnom Penh Plan for Development Management Phase IV REG 22-Jun-11 Knowledge 500,000 496,975 3,025 TA 100% completed and

TA 7805 TA 7801 Strengthening Support for the Asia-Pacific Economic Cooperation Financial Regulators Training Initiative (APEC FRTI) Strengthening Public Resources Management Program REG 29-Apr-11 Knowledge 500,000 418,161 81,839 Near completion TAJ 12-Apr-11 e-asia 500,000 499,031.10 968.90 TA 100% completed and 20 Appendix 2 TA 7706 Comparative Infrastructure Development Assessment of the Kingdom of Thailand and Republic of Korea REG 10-Dec-10 Knowledge 400,000 385,326 14,674 TA implementation completed (Financially not yet closed) TA 7687 Strengthening Capacity to Address Climate Change for Small- and Medium-sized City Development PRC 6-Dec-10 Knowledge 500,000 370,496 129,504 TA 100% completed and TA 7601 TA 7379 Updating and Expanding Social Protection Index Sustainable City Management in Asia (consolidated with Establishment of e-systems in Support of Infrastructure Finance in Asia) Supplementary REG 18-Sep-10 Knowledge REG 7-Sep-10 Knowledge 500,000 497,788 2,212 TA implementation completed (Financially not yet closed) 500,000 TA 100% completed and TA 7576 Promoting an Interlinked ASEAN Capital Market REG 9-Aug-10 Knowledge 500,000 243,255 256,745 TA 100% completed and TA 7556 Public Transport Information and Communication Technology MON 29-Jun-10 e-asia 500,000 420,722 79,278 TA 100% completed and TA 7543 Sharing Knowledge on Community Driven Development in Asia and the Pacific REG 14-Jun-10 Knowledge 500,000 484,989 15,011 TA 100% completed and TA 7552 Support for Trade Facilitation in BIMP-EAGA REG 14-Jun-10 Knowledge 500,000 466,041 33,959 TA 100% completed and

TA 7540 TA 7513 Mainstreaming Public-Private s (formerly, Mainstreaming PPP in Thailand) Computer Access Mentorship Program a Public-Private for Enhancing Education Quality THA 2-Jun-10 Knowledge 500,000 464,419 35,581 TA 100% completed and PHI 12-Apr-10 e-asia 500,000 500,000 - TA 100% completed and 21 Appendix 2 TA 7414 Institutional Modernization to Improve the Business Environment in Armenia ARM 8-Dec-09 e-asia 500,000 473,081 26,919 TA 100% completed and TA 7399 ICT-based Inclusive Growth and Poverty Reduction in the Pacific (old name: Pacific Regional ICT Development) REG 3-Dec-09 e-asia 500,000 443,256 56,744 TA 100% completed and TA 7379 Establishment of e-systems in Support of Infrastructure Finance in Asia REG 13-Nov-09 e-asia 500,000 998,999.76 1,000.24 TA 100% completed and TA 7365 Capacity Building Program on Clean Development Mechanism (CDM) MON 22-Oct-09 Knowledge 500,000 431,758.72 68,241.28 TA 100% completed and TA 7351 Improving Public Services through ICT (old name: ICT Capacity Building and Knowledge Sharing) REG 22-Sep-09 e-asia 500,000 457,369 42,631 TA 100% completed and TA 7334 India Municipal Finance Study IND 24-Aug-09 Knowledge 500,000 324,265 175,735 TA 100% completed and TA 7338 Strengthening Indonesia's Economic Early Warning System (old name: Fostering Knowledge s to Strengthen Indonesia s Economic Early Warning Systems) INO 21-Aug-09 Knowledge 500,000 481,892 18,108 TA 100% completed and

TA 7305 TA 7297 Tonle Sap Technology Demonstrations for Productivity Enhancement Road Database Development Using Geographic Information System (GIS) CAM 1-Jul-09 e-asia 500,000 423,941 76,059 TA 100% completed and MON 9-Jun-09 e-asia 500,000 481,476 18,524 TA 100% completed and 22 Appendix 2 TA 6407 GMS Phnom Penh Plan for Development Management III (4th Supplementary) REG 12-May-09 Knowledge 500,000 460,830 39,170 TA 100% completed and TA 7277 Governance and Capacity Development Initiative (Phase 2) REG 28-Apr-09 Knowledge 500,000 245,692 254,308 Near completion TA 6523 for Good Governance and Knowledge on Urban Water Management REG 19-Jan-09 Knowledge 500,000 500,000 - TA 100% completed and TA 6513 Rural ICT Policy Advocacy, Knowledge Sharing, and Capacity Building REG 18-Dec-08 e-asia 500,000 463,492 36,508 TA 100% completed and TA 6514 Harmonization of Bond Standards in ASEAN+3 (original proposal: Standardizing or Harmonizing Asian Bond Conventions and Norms) REG 16-Dec-08 Knowledge 500,000 471,258 28,742 TA 100% completed and TA 7220 Geo-Information Technology for Hazard Risk Assessment VIE 8-Dec-08 e-asia 500,000 423,118 76,882 TA 100% completed and TA 6502 Regional Knowledge and Networks for Poverty Reduction and Inclusive Growth REG 14-Nov-08 Knowledge 500,000 404,275 95,725 Near completion TA 6492 Knowledge Sharing on Infrastructure PPPs in Asia REG 7-Oct-08 Knowledge 500,000 440,760 59,240 TA implementation completed (Financially not yet closed)

TA 7133 TA 7111 Capacity Building and School Networking for Educational Services (e-learning) in Thailand Knowledge Transfer for Public Procurement in Nepal THA 19-Sep-08 e-asia 500,000 327,867 172,133 TA 100% completed and NEP 31-Jul-08 Knowledge 500,000 448,010 51,990 TA 100% completed and 23 Appendix 2 TA 4293 e-tools for Community Focused Urban Poverty Reduction in the Philippines (Capacity Building for Housing Microfinance - Supplementary) PHI 27-Jun-08 e-asia 500,000 500,000 - TA 100% completed and TA 7058 Piloting Community e- Centers for Better Health LAO 29-Jan-08 e-asia 500,000 480,546 19,455 TA 100% completed and TA 6426 Knowledge-Sharing Program Using Good Asian Practices in Innovation and Development REG 11-Dec-07 Knowledge 500,000 438,954 61,047 TA 100% completed and TA 4999 (Piggybacked to Loan 2378) Financial Sector Program II Implementation (original proposal: Implementation Support for the Computerization of the National Bank of Cambodia) CAM 6-Dec-07 e-asia 500,000 485,908 14,092 TA 100% completed and TA 6419 Promoting Environmental Compliance and Enforcement in Asia (AECEN) REG 16-Nov-07 Knowledge 150,000 107,762 42,238 TA 100% completed and TA 4989 TA 4940 Deploying Innovative Information and Communication Technology (ICT) for Supporting e- Governance in Assam Business Process Reengineering and Change Management for Tax Administration Modernization IND 15-Nov-07 e-asia 500,000 463,925 36,075 TA 100% completed and KGZ 14-Jun-07 e-asia 500,000 420,660 79,340 TA 100% completed and

Grant 0070 (Piggybacked to Loan 2307) TA 6358 Customs Modernization Project (formerly: Institutional Strengthening for Customs Modernization) South Asia Subregional Economic Cooperation (SASEC) Information Highway MON 20-Dec-06 e-asia 500,000 481,533 18,467 TA 100% completed and BAN, BHU, IND, and NEP 1-Dec-06 e-asia 500,000 453,394 46,606 TA 100% completed and 24 Appendix 2 TOTAL 36,661,000 24,028,573 12,056,428 Note: ASEAN = Association of Southeast Asian Nations; BIMP-EAGA = Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area; GMS = Greater Mekong Subregion; ICT = information and communication technology; PPP = public private partnership; TA = technical assistance. Source: Progress reports submitted by the project officer(s), as of 31 December 2014; EAKPF Status of TA Expenditures (as of 31 December 2014).

Appendix 3: Project Processing Procedure for the E-Asia and Knowledge Fund A. Concept Preparation 1. The Asian Development Bank (ADB) project officer who plans to apply for the Fund must prepare a concept paper using ADB s template. B. Concept Review 2. ADB has established a Review Committee (RC) for the Fund. The RC acts as a technical advisory group for quality assurance of the projects under the Fund as follows. The RC will be chaired by Deputy Director General, Regional and Sustainable Development Department (RSDD). It is comprised of one representative from each regional department and a representative from Office of Information Systems and Technology and the Operations Services and Financial Management Department. 3. Prior to interdepartmental review following ADB s new business process 1, the concerned RC must assess if the concept paper meets the country eligibility and project criteria and makes recommendations on whether the concept paper is accepted, needs revision, rejected, and/or provides technical comments and suggestions, if necessary. For this screening, the concept paper together with a cost estimate table, a design and monitoring framework, and an information and communication technology (ICT) classification sheet (only for e-asia program) must be sent to RSDD for the coordination with the concerned RC. An RC meeting will be organized when there are conflicting views among the committee members and will be called on by Deputy Director General, RSDD. 4. Upon the clearance from the concerned RC, ADB project officer must circulate the revised concept paper to other key support departments that are not included in the concerned RC for the interdepartmental comments. 2 C. Concept Clearance 5. The concept paper must then be cleared by the respective Vice President (VP) or for departments reporting directly to the President, by the Managing Director General (MD) subject to endorsement of funding from the Government of Korea. 3 Those concept papers, already included the country partnership strategy (formerly country strategy and program) or its annual updates, and the regional cooperation strategy or its annual updates, do not need to be cleared again by the respective VP or by the MD. D. Proposal Preparation 6. Upon concept clearance, ADB project officers must submit (i) the cleared concept paper (with a copy of the memo indicating concept clearance), (ii) the design and monitoring 25 1 2 3 ADB. 2006. Further Enhancing Country Strategy and Program and Business Processes. Manila Key support departments include Economic and Research Department, Operations Evaluation Department, RSDD, Central Operations Service Office (COSO), Office of Cofinancing Operations (OCO), and Office of the General Counsel. Concept clearance by department grouping as follows: Office of the Vice President Operations 1 (South Asia Regional Department, Central and West Asia, Private Sector Operations Department, Office of the Vice President Operations 2 (East Asia Regional Department, Southeast Asia Regional Department, Pacific Regional Department, COSO; Vice President Knowledge Management and Sustainable Department [VP KM and SD] (RSDD, ERD, OCO); and Managing Director (Department of External Relations, Office of the Auditor-General, Office of Regional Economic Integration, Strategy and Policy Department, Office of the Special Project Facilitator, Office of Risk Management.