The Inter-American Development Bank approved a $100 million loan to support the government of Trinidad and Tobago in its efforts to enhance and modernize the management of its public capital expenditure.
The loan, the first of the programmatic series of three independent but related operations, will lay the foundation for the rest of the program.
The objective of the program is to enhance efficiency, effectiveness, transparency, and accountability in the use of public resources. The project will modernize the public sector investment management system; improve transparency and accountability in public procurement; and enhance public financial management and control systems.
The program supports the following initiatives:
- Implementation of a system to screen proposed public investment projects based on objective criteria;
- adoption of a new legal and institutional framework for public procurement in accordance with best international practices, aimed at enhancing transparency and accountability; promoting greater competition among government suppliers and generating savings in public procurement.
- strengthen the institutional capacity of the Auditor General’s Department to enhance integrity in government;
- modernization of processes and information systems for a more transparent and effective public financial management.
The IDB loan is for 20 years, with a five-year grace period and an interest rate based on LIBOR.