The Provincial Governance Strengthening programme is implemented through the ministry of provincial government and institutional strengthening. The Programme aims to strengthen the institutional capacities of provincial governments in order to facilitate effective and efficient service delivery. The programme management unit is headed by Chief Technical Advisor and reports to the executive management of MPGIS. Following the endorsement of the PGSP II, the Solomon Islands Government (SIG) continues to increase its commitment to the programme as well as mandating MPGIS to oversee implementation of the programme. The SIG continuous commitment has seen national budget providing 100 % funding to the Provincial Capacity Development Fund (PCDF) resource level reflecting the Governments ownership of the programme. The PCDF which consolidates funds support towards implementation of the PGSP is the Capital funding that provides financial resources towards various components of the programme. The brief table below shows funding allocations to the PCDF in 2016 and projection for next four years

The PCDF is administered through a performance based grants. This requires provinces to perform to a certain level in financial management to qualify for the Annual PCDF allocation. With that, the provincial financial accounts will subject to an Independent audit to determine the performances of provinces in a financial year.

The Provincial Governance Strengthening Programme (PGSP) focus area covers,

1. Capacity building of Provincial Governments in the area of Public Expenditure Management (PEM) and Financial Management
2. Strengthening of processes and systems for better service delivery
3. Building Capacity of Provincial leaders to perform their roles and responsibilities more effectively
4. Provide funds for building of small-scale capital investments that supports service delivery and for Building of small scale infrastructure development.
5. Provision of Technical expertise and advisory to Provincial Governments and MPGIS

Some key programme activities to be implemented under the pdf MPGIS Corporate Plan 2017-2019 (6.32 MB) includes;

• Institutionalization of PCDF. Pursue a Joint commitment between the Central Agencies namely MDPAC, MPGIS and MoFT on funding arrangement which aims at giving the grant predictability in the long term.
• Support implementation of the financial management strategy for provinces aimed at managing expenditure and debts management and maintaining a sound budgetary control measures.
• Continue to conduct the public expenditure management trainings aimed at improving the understanding of MPAs and the head of divisions on various aspects of public financial management, their roles and responsibilities in PCDF implementation.
• Support and provide mentoring to provinces which disqualifies on PCDF to improve performance prior to next round of independent assessment.
• Trained chief planning officers, Provincial Treasurers and their deputies in provincial planning and bud­geting with the aim to improve the understanding of officers in various aspects of provincial planning and budgeting including procurement procedures and processes.
• Trained Provincial Treasurers and their deputies in International Public Sector Accounting Standards aimed at improving the officer’s skills in preparations of provincial government financial statements.
• The Programme Management Unit is also mandated to coordinate external audits and evaluation team who will be required to carry out mid review of the programme implementation as well as the annual assessment of provinces for PCDF qualification.
• Provide general capacity building to MPGIS in area of budgeting, Planning and financial management. This aims at improving performance of the ministry in delivering on its key mandates.
• Oversee implementation of small infrastructure projects under PCDF at the provincial level.
• Consolidate annual reporting from provinces on PCDF achievements and implementation as part of the MTDP and budget Annual Report.