Support to BPK for Preparation of New Strategic Plan Project description for a proposed grant for supporting BPK in  preparation of its strategic plan (2011-15) and providing support to preparation and execution of its implementation plan (2011-15). Background: A peer review of BPK was recently conducted by Dutch Court of Audit and came out positive.  There has been a significant improvement in BPK since 2004 when the last peer review was carried out in terms of mandate, resources and practices. BPK has in place a strategic plan and a detailed implementation plan which lay out the overall direction of the institution and has served as a roadmap of BPK's significant achievements in the last 5 years. The new BPK Board will take effect from October 2009.  Thus the new strategic plan and implementation plan would have to be prepared in line with the vision of the new BPK Board. Project description: BPK has sought support from the Bank to: (a)   Prepare its strategic plan for 2011-15:  The strategic plan will develop on the current strategic plan and focus on the strategy on organization, HR, audit coverage and external relations besides laying out the new strategic goals of BPK.  The preparation of strategic plan would involve internal focus group discussions, stakeholder consultation workshops and consultant support to help put the strategy together. (USD 70,000); (b)   Preparation and execution support for BPK implementation plan 2011-15.  The implementation plan is a detailed document which lays out the specific actions that BPK proposes to carry out on the major areas identified in the strategic plan with target dates, responsibilities and measurement indicators.  This would involve consultant support to BPK team preparing the implementation plan and consultant support during the first year of implementation. (USD 230,000) Linkage to CPS: The proposal relates directly to the CPS objective of strengthening country institutions and links in with the cross cutting engagement on strengthening central government systems and institutions.  BPK as the SAI of the country is a key accountability institution. Critical risks and mitigation measures: 1. Risk a. Procurement delays and DIPA issues like other recipient executed trust funds b. BPK is in a transition phase now with a new Board expected to take over in October 2009 c. BPK has had a mixed record of implementing previous grants.  The grant for audit of disaster related aid is performing satisfactorily.  However, the grant on forensic audit disbursed only 35% of the grant amount on closure. 2. Proposed mitigation measures a. Procurement process to be started before the issuance of DIPA.  Procurement contracts expected to be mainly individual contracts. b. BPK would need a new strategic plan and implementation plan from 2011.  The new Board will be consulted prior to proceeding with the grant. c. Duplication of sources of funds had been cited as a major reason for poor disbursement of the grant for forensic audit capacity building (the outcome of the grant has been rated as moderately satisfactory).  BPK has assured us that in the event of us going ahead with this grant, the activities would be funded from the grant. The new Board of BPK needs a new strategic and implementation plan for 2011-15. The grant objective is to strengthen BPK's organization, human resources, audit coverage and external relation; and improve implementation of the strategic plan for 2011 - 2015.