Peru will improve its public financial management through digital transformation with a $74 million loan approved by the Inter-American Development Bank (IDB). The project’s goal is to improve the quality of financial management information by increasing the efficiency of public spending processes.

In particular, it will finance actions to strengthen the organizational capabilities of the public sector’s financial administration by reviewing and updating processes, regulations and methodologies associated with public resource programming, administration and evaluation.

The project will promote the digitalization of processes and documents and the use of data analytics tools for data mining and reporting, s fostering the implementation of a public cost management system. It will also finance personnel training to facilitate the adoption of the new processes and the adaptation to organizational changes.     

In addition, the funds will finance the expansion of technological infrastructure and the modernization of information technology systems. Regarding infrastructure, the project will finance the implementation of a cloud environment for data processing and storage, IT equipment expansion, and the adoption of a cybersecurity system and a platform for system data exchange.

The IDB loan is for a 17-year term, with a 7.5-year period of grace and interest rate based on LIBOR. The Government of Peru will provide an additional $18.5 million in local counterpart funds.