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LAOS - Reinforcement of public funding and financial management
On 15 May 2019, HE Prof Dr Bounkong Syhavong, Minister of Health of Lao PDR, presided an inter-ministerial meeting of the National Council overseeing the Lao-Luxembourg LAO/027 Programme’s “Joint Participatory Mechanism” (JPM).
Women and children attending village health clinic
The JPM is an innovative financing mechanism, by which the LAO/027 Programme multiplies provincial government budgets annually on a common imprest account, for the timely provision of mother and child health services in three central provinces of Laos (population 1.1 Million). Application of the JPM multiplier formula is based upon well-defined budget-activity plans, timely imprest account deposits by the government and detailed target indicators on service quality, outputs and outcome.
The JPM began in 2018, following a previous 10-year experience of direct delegation agreement for Funds and Implementation.
Joint Participatory Machanism National Secretariat national review meeting 1st quarter 2019
The JPM aligns with the provincial budgetary planning cycles and provides effective and sufficient funding at the beginning of the fiscal year for the entire operational year. A transparent participative provincial planning process allows all district health system facilities (178 village health centres, 28 district hospitals) to receive operational budgets effectively and timely, through quarterly budget replenishment cycles.
Provincial training on Joint Participatory Mechanism financial management training
The National Council meeting hosted high-ranking representatives from the Ministries of Health and Planning and Investment, as well as the Resident Representative of the World Health Organisation and Mr Sam Schreiner, Chargé d’affaires a.i. Embassy of Luxembourg in Vientiane Laos.
Joint Participatory Machanism National Council Annual Meeting chaired by HE HE Prof Dr Bounkong Syhavong, Minister of Health of Lao PDR (thirth from the left) and co-chaired by Mr. Sam Schreiner, Chargé d’Affaires a.i. Embassy of Luxembourg in Vientiane (seond from the left)
During the recent meeting, the Council Members reviewed the results achieved during the first full year of JPM activities implementation in 2018, for a total budget of 1,082,136 EUR (20% MOH, 80% LAO/027 contributions), and endorsed the reports of the independent external auditors, stating a reconciled disbursement rate of 99% for the three provinces combined.
The National Council furthermore examined the first quarterly progress report of the ongoing 2019-year budget-activity plans, and approved the provincial activity proposals for the 2020 budget cycle (total provincial and Luxembourg amount combined of 1,317,952 EUR)
A JPM National Secretariat, embedded in the Ministry of Health, monitors quarterly the provincial results towards the achievement of the national targets for SDG 3 (Sustainable Development Goals for Health) and the national MCH policies and strategies. The Secretariat’s work is executed through the national Health Management information system and completed with supportive supervision and quarterly review and planning meetings.
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