Philippines: Technical Assistance Report—Public Investment Management Assessment

IMF Staff Country Reports, May 16, 2019

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Reviews public investment management practices in the Philippines using the IMF’s Public Investment Management Assessment (PIMA) methodology.
Provides a broad overview of institutional strengths and weaknesses along the public investment cycle.
The PIMA findings could guide the upcoming Public Expenditure Review that is likely to be completed with the support of the World Bank.
Proposes eight priority reform measures to strengthen the public investment management framework in the Philippines.

Institutional weaknesses exist that need to be addressed to strengthen public investment management.
Public investment management institutions in the Philippines are generally comparable to emerging market economies, but there is scope to improve performance.
Standard methodologies for maintenance planning and costing of infrastructure assets exist for certain types of assets; these practices are not yet consistently extended across all sectors.
Routine maintenance of major infrastructure assets lacks a central monitoring mechanism.

Implement the eight priority reform measures proposed in the report to strengthen the public investment management framework (measures described in the report).
Extend standard methodologies for maintenance planning and costing of infrastructure assets to additional sectors.
Establish a central monitoring mechanism to ensure routine maintenance of major infrastructure assets.
Use the PIMA findings to inform and guide the Public Expenditure Review with World Bank support.

Strengthening public investment management would help maximize the return from the infrastructure investment planned in the coming years.
Improved maintenance planning, costing, and central monitoring would support better preservation and utilization of infrastructure capital.