Contacts: In Washington: Stevan Jackson (202) 458 5054 sjackson@worldbank.org; In Guatemala City: Virginia Barrios 502-2366-9852, Ext 263 vbarrios@worldbank.org WASHINGTON, March 27, 2008 – The World Bank’s Board of Directors today approved a $20 million loan in additional financing to support Guatemala’s efforts to modernize the management of public sector finances. This work seeks to amplify the impact and development effectiveness of a project which is currently under implementation. “Additional financing through this project will help Guatemala continue to make progress in terms of improving the management of its investments in social services and basic rural infrastructure so that the programs benefit poor people,” said Laura Frigenti, World Bank Director for Central America. “Providing government officials with timely information on budget commitments will improve efficiency of public sector delivery.” The project will help the government expand and complete its public sector modernization work in the areas of public expenditure, fiscal and financial management, as well as to strengthen its control systems and further implement its e-government strategy and continue progress under the previous project. The Guatemala Integrated Financial Management Project will facilitate the provision of technical assistance necessary to: i) Further strengthen the budget, accounting and treasury management functions; ii) Institutionalize the respective integrated financial management (SIAF) and the e-procurement (GUATECOMPRAS) systems within the Ministry of Finance; iii) Support the municipalities’ capacity to adopt and consolidate new procedures and systems to carry out efficient and transparent financial management; iv) Strengthen the Comptroller General’s Office (CGC); v) Build and integrate public planning and public investment procedures and systems with the budget; and, vi) Design and institutionalize a permanent knowledge management system in the area of public expenditure management. “The SIAF system is now considered one of the best regional practices in automated public financial management,” said Anabela Abreu, World Bank Country Manager for Guatemala. “New financial management procedures and systems were successfully implemented in most all municipalities, and we look forward to continuing the good work of this project.” Abreu added. The SAIF, also known as the Integrated Financial Management System, is designed to extend the reach of the remaining agencies and social funds within the central government, and reaching executing units’ levels in central government agencies. This supports Guatemala’s decentralization effort, by underpinning the design and implementation of new financial management procedures and systems in the 331 municipal governments. This $20 million Fixed-Spread Loan has a reimbursement period of twenty-five years and a grace period of 9 years. -###- For more information on the Guatemala Integrated Financial Management Loan , please visit: http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=40941&menuPK=228424&Projectid=P106993 For more information on the World Bank’s work in Guatemala, please visit: http://www.worldbank.org/gt |
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