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Govt. to establish framework to improve implementation of national projects
In an effort to ensure the effective implementation of the Public Sector Investment Programme (PSIP), the Finance Ministry intends to establish a public investment management framework that will streamline and formalize all aspects of the project cycle – from conceptualization, preparation and appraisal, to implementation management and monitoring and, finally, to evaluation and reporting.
This was recently revealed by Finance Minister, Winston Jordan.
The economist noted that the process will require behavioural changes, especially on the part of technical staff and Heads of Budget Agencies. He said that in early 2019, the Ministry will formalize the project preparation and selection process, which is intended to create a viable project pipeline.
Finance Minister, Winston Jordan
Jordan said that $100 million has been budgeted in the Ministry of Finance, to establish a Project Preparation Facility to support this process. Another $100 million has been budgeted in the Ministry of Public Infrastructure to undertake feasibility studies for some major projects.
Jordan said, too, that the Ministry of Finance has already begun to implement the overarching public investment management framework with the development of a Project Profile and Concept Note (PPCN) used in the preparation of Budget 2019. He explained that the PPCN is required for all medium-to-large scale initiatives and serves to ensure that Budget Agencies only approach the Treasury for funding of projects that are fully conceptualized. He said that this includes articulating the potential outcomes an intervention may have on the relevant population and environment, the associated performance indicators, and inter-sectoral linkages.
The Finance Minister said that a more effective PSIP, where project conceptualization and selection are derived from a criteria-based approach, will result in more targeted expenditure and interventions, such as constructing farm-to-market access roads, developing business incubators, upgrading our airstrips, and enhancing energy supply, just to name a few.
HIGHEST IMPLEMENTATION RATE
After months of issues, the Government was finally been able to improve the implementation rate of its Public Sector Investment Programme (PSIP).
The Finance Ministry has noted that for the first half of 2018, the PSIP expended $19.0 billion, reflecting a 20.0 percent increase, over the comparable period, in 2017. This represents an overall implementation rate of 31.8 percent of the budgeted allocation of $59.7 billion, the highest half-year implementation rate in the last five years.
While challenges persist within the tender process, the Ministry said that evidence suggests that sensitization clinics, held with Budget Agencies, during 2018, to mainstream procurement planning and assist agencies with the preparation of procurement plans, have positively impacted this half year performance.
The Ministry said, too, that there has been a 30.0 percent improvement in the performance of the locally-funded portfolio, compared to similar period in 2017. Further, the general improvement in turnaround times in the tender process has contributed to improved implementation. As at the half year, more than $23.8 billion of the local PSIP projects were awarded.
Further to this, the Finance Ministry said that the implementation rate of the foreign funded portfolio of investments was 25.3 percent of the budgeted sum of $27.3 billion, an improved performance when compared to the $6.5 billion spent in the comparable period, in 2017.
Government said that it remains committed to delivering the PSIP, of $59.7 billion, supported by rigorous monitoring of all PSIP projects. In the second half, the Finance Ministry said that greater emphasis will be placed on accelerated implementation of the foreign funded portfolio of projects.
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