Managing Public Investments
Public investments are important drivers for economic growth, yet they are the first to be cut during periods of fiscal constraints. In many countries this has exacerbated project delays and cost overruns, has often led to arrears, and stalled unfinished projects. Whether a country’s portfolio of public investments delivers the anticipated benefits depends crucially on how well it is managed. This workshop will examine the key stages of the public investment cycle to identify the critical areas where the efficiency and effectiveness of public investment could and public private partnerships be improved. It continues a sequence of related CEF learning initiatives delivered in cooperation with IMF FAD experts.
How will you benefit?
This workshop aims to help public officials better understand key factors undermining the efficiency of public investment spending, as well as shortcomings in procedures and institutional organization, in order to explain what improvements can be made to ensure better management of public investments.
Upon completion, participants will be able to:
- Understand the Public Investment Management Assessment (PIMA) assessment tool and the Public-Private Partnership (PPP) Fiscal Risk Assessment (PFRAM) evaluation tool, and how these can be used to improve domestic systems
- Appraise the challenges of externally financed public investment projects, and how to effectively integrate them within country’s overall public investment management system
- Describe the key stages and institutions involved in managing public investments and how these can affect the efficiency of public investment
- Assess how to streamline the process of public investment projects preparation, evaluation, prioritization and monitoring to better integrate it into the regular budgeting process
- Identify specific shortcomings in domestic procedures and the institutional organization of managing public investments, and what could be done to address them
What you will learn?
The workshop will outline the desired features of effective public investment management systems, and highlight gaps between how systems are meant to work on paper and how they often work in practice. It will provide a concrete and pragmatic set of recommendations for how ministries of finance can improve the ways that governments manage investment expenditure, i.e. how they prepare, evaluate, prioritize and monitor their capital projects.
The event will provide insight into the key stages of public investment cycle set in the IMF’s PIMA – planning, allocation and implementation – to identify the critical areas where efficiency and effectiveness of public investment could be improved to disable project owners to systematically overestimate the benefits and underestimate the costs of a project in their appraisals.
Furthermore, it will explain how the distinctive challenges of managing investments seek identification of specific institutional arrangements necessary to support these stages and enable adequate outcomes. Finally, it will examine the position and role of an independent review of appraisal results, and assess how it could be used as a way to check compliance with procedures, and to restrain political influence over project selection.
We will take a look at public investment plans as a means of linking a portfolio of investment projects with a long-term national development objectives, and analyze the role of these planning documents in creating a pipeline of well-prepared projects, appraised using cost–benefit analysis, and made ready for selection in the annual budgeting process.
Moreover, we will assess how the stages in the life cycle of a public investment project can be combined with the annual budget cycle at certain key moments. Taking the prospective of a finance ministry, we will assess how this system, constructed to effectively inform annual budget formulation, can secure better debt management, reduction of arrears, and compliance with overall medium-term fiscal objectives.
Since PPPs are becoming an increasingly popular mechanism for funding public investments, this learning initiative will also review the elements of the PFRAM assessment tool, and discuss how management of capital projects with external financing can be better integrated within overall public investment management systems to secure value for money.
The event will be held in English, and highly participatory. Participants will be encouraged to share their experiences and country practices.
Who should attend?
Invited are public officials in South East Europe who are working at ministries of finance, capital intensive line ministries, central planning and coordinating institutions, and government agencies for roads and railways, and who are actively participating in planning, appraisal, evaluation, implementation and oversight of capital projects.
No fee will be charged, and meals and refreshments provided during the event. Flights, transfers, and accommodation will be funded for up to three officials per EU 2014-2020 Instrument for Pre-Accession (IPA II) beneficiary country, as well as one official per country from Armenia, Bulgaria, Croatia, Georgia, Moldova, Romania, and Ukraine. Applications of additional self-funded candidates from the CEF Constituency (and beyond) will be considered, as far as space permits.
Applications need to be submitted no later than August 17 via the online application form. Candidates will need to be approved by the CEF; confirmations will be sent to selected candidates by August 22.
Information to be added
This learning initiative is supported by: