US$20 million to improve public investment, procurement, financial management, and audit
“The reform effort will combine policy initiatives as well as government action,” said IDB team leader Jorge Luis Von Horoch. “The project will address the management of public investment, procurement and financial management and audit to support an ambitious government development program.”
The program outlines a comprehensive reform of the whole cycle of publicly funded projects, involving key aspects for the preparation, selection, execution, monitoring and evaluation.
The investment aspect will cover issues related to policies, practices, and mechanisms for improved project cycle management, including a better strategic vision in the pre-investment stage.
The procurement, financial and audit components are key to enhance project implementation. Each area of the program will target the legal framework, procedures and necessary instruments.
This financing is the first of a program of three policy-based loans. The IDB loan approved today is for a 20-year term, with a five-year grace period, at a variable interest rate based on LIBOR. The Ministry of Finance will be in charge of the program.
- Christina MacCulloch