Contacts: In Buenos Aires: Yanina Budkin (54-11) 4316-9724 ybudkin@worldbank.org In Washington: Gabriela Aguilar (202) 473-6768 gaguilar2@worldbank.org WASHINGTON, August 29, 2007— The World Bank approved yesterday US$24.8 million to increase the efficiency of operations regarding financial management, budget formulation and execution, and the transparency of public expenditure management at the central and municipal level in Chile through the implementation of an updated, functionally enhanced and expanded financial administration system, the Sistema de Información para la Gestión Financiera del Estado (SIGFE). The expansion and strengthening of the SIGFE is one of the Government’s key initiatives incorporated in the 2007 Budget law. Its implementation has already yielded benefits, including enhanced fiscal transparency, robust institution strengthening, improved inter-agency coordination, and enhanced financial planning. “The consolidation and expansion of SIGFE will help strengthen further Chile’s public expenditure management by promoting increased efficiency and transparency in the allocation and use of public resources. Moreover, by strengthening financial management at the municipal level, the project will help improve the effective utilization of municipal resources including by promoting greater accountability” said Pedro Alba, World Bank Country Director for Chile, Argentina, Paraguay and Uruguay. The operation would consist of four components: a) Upgrading and Extending the Financial Information System to the Central Government Entities by providing technical assistance, training, designing and developing of software and equipment as well a procurement of software licenses to upgrade SIGFE and install it in Central Government Entities. b) Improvement of Budget Procedures and Mechanisms of the Management Control System. This component willenhance the quality of public expenditures by strengthening the Management Control System (MCS) and integrating them into the Budget Cycle. c) Strengthening Financial Administration at the Municipal by improving the availability of information on municipal budgets and on financial transfers; strengthening financial administration at the municipal level; and improving the effective use of central government transfers to municipalities, for example within the Municipal Fund (Fondo Común Municipal). d) Project Management. This component will cover operating expenses related to the following activities: Provision of technical assistance to Central Government Entities as part of the implementation of SIFGE or SIGFE-compatible financial administration systems; strengthening the capacity of selected Municipalities to operate financial administration subsystems and the Municipal Financial Information System; and strengthening the Government’s capacity to monitor and supervise the overall implementation of the Project. “The project aims at improving public expenditure management by furnishing Congress and the Executive with more effective tools for budget formulation and budget execution”, said Roberto Panzardi, World Bank Task Manager for the project. “Congress, the Executive and the public at large would have access to financial information that is more accurate, timelier and more complete”. The Fixed-Spread Loan from the International Bank for Reconstruction and Development (IBRD) for US$24.8 million has a 10 year maturity and a five year grace period. ### For more information on the Second Public Expenditure Management project please visit:http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=64624214&theSitePK=2748767&menuPK=2805091&Projectid=P103441 For more information on World Bank’s program in Chile please visit: http://www.bancomundial.org/cl |
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