Contacts In Washington Anand Rajaram: 458-2359 Arajaram@worldbank.org Robert A. Yungu 458-2491 ryungu@worldbank.org In Niamey, Niger, Ibrahim Cheick Diop 227-20 73 56 16 Idiop@worldbank.org Washington, July 2, 2009 – The Board of Directors of the International Development Association today approved a five-year technical assistance grant for US$10 million to support the reform process at the Ministry of Economy and Finance, which seeks to build the capacity required for implementation of Public Financial Management (PFM) reform. The World Bank and the other development partners have noted in several implementation completion reports (ICRs) on PFM reform projects that weak public sector capacity is a major obstacle to the implementation of reform programs in Niger. Indeed, all the ICRs on PFM reform projects indicate that the first and probably the most important lesson to be learned is the need to couple the design of a major political and institutional reform program for public financial management with the implementation of a comprehensive capacity-building project supporting each main objective of the components of the PFM program. The Government in turn recognized the importance of capacity building to the success of PFM reforms. It is against this backdrop that the Ministry of Economy and Finance, in view of expected increased revenues, particularly from the mining and oil sector, requested the World Bank to provide assistance to strengthen, modernize, and reform its ministry. The World Bank’s Country Manager in Niger, Ousmane Diagana, noted that “this project is fully consistent with the World Bank’s new 2008–2012 Country Assistance Strategy for Niger, which proposes a program that focuses on supporting engines of growth, which includes strengthening public finance management and improving access to basic social services.” This reform will focus on specific areas, including the strengthening of Directorates General, the acquisition and use of decision-making tools, training, research, and the mobilization of experts in the country and in the Diaspora. The project has three key components, namely (i) capacity building; (ii) use and streamlining of information and financial management systems; and (iii) project coordination support. Component A: Capacity Building (US$3 million) Three sub-components were selected to support capacity building, namely (i) capacity building of key MEF personnel; (ii) support to training institutes; and (iii) support to the Diaspora program. Component B: Use and Streamlining of Information Systems (US$5.5 million) This component includes the following activities: - Implementation of an intranet/internet system (US$2.5 million); - Streamlining and upgrading of systems (US$2 million); - Upgrading of budget information systems; - Upgrading of customs administration information systems; - Upgrading of tax administration information systems; and - Upgrading of the cash management system and support for reform of the Treasury. Component C: Support to the Project Coordination Unit (US$1.5 million) The main activities undertaken by the Project Coordination Unit include (i) the preparation of annual work plans, procedures manuals, and procurement plans; (ii) the conduct of fiduciary and monitoring activities; (iii) the coordination of technical works related to the project’s components; and (iv) leadership with respect to the preparation and implementation of the project. Monitoring and Evaluation System A monitoring and evaluation system will be established in the Project Coordination Unit to monitor and evaluate the progress of the proposed IDA project, in the wider PFM reform context. -#- |
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