IDB will contribute $8 million to the project
The Inter-American Development Bank (IDB) has approved a loan for $8 million to Colombia for the creation of an innovative system for monitoring public investments, which have experienced a dynamic growth and extensive changes due to the country’s process of decentralization.
Colombia will contribute $25 million to the program, bringing total investment to US$33 million.
The amount and characteristics of public spending in Colombia have changed in recent years.Between 1990 and 2002, the volume of resources transferred to sub-national entities (such as departments and municipalities) has increased 22 times, and those entities now administer one third of the country’s total public expenditure.On top of this, citizens are demanding better services and greater access to information.
The project aims to improve monitoring and tracking tools for public investment management through an integrated technology platform.The platform will provide public officials and the public with timely information on investment resources and projects in the country’s main sources of public sector investment, which are the General Budget of the Nation, the Revenue Sharing System, and the General Royalty System.
"Increasing resources for public investment without an adequate institutional framework increases the risk that the investment is less productive," said Diego Arisi, IDB team leader for the project.
The project, which will be carried out by the National Planning Department, will improve the efficiency, monitoring, and tracking of public investment.The technology platform will have a data visualization and geo-referencing component to create an investment map. In five years, information for all approved and financed investment projectswill be available online and with tracking tools that will facilitate decision-making and early warning.
The IDB is a single payment loan with a 15-year maturity and a LIBOR-based rate.