About this learning event

The event will focus on knowledge sharing and capacity building in the Implementation of the Public Financial Management Program 2022-2026 for Montenegro, and more specifically public investments preparation on the local level and their financing. This two-day event will be related to the capital projects preparation and the selection criteria of capital projects proposals according to the Decision on the Development of the Capital Budget in Montenegro, with the focus on local governments' project proposals. The workshop is part of the activities within the Operational Objective 1.4 – Improving public investment management and the indicator tracking the growth of the percentage of new mature projects in the capital budget- of the PFM Program 2022-2026.

Capital budgeting project appraisal is crucial for investment effectiveness, as it aligns investments with strategic objectives, provides better allocation efficiency, and mitigates fiscal risks. A transparent and structured process of planning capital investments – such as infrastructure, public facilities, healthcare, transportation, etc. – is important for increasing the efficiency and effectiveness of public investments and ensuring their sustainability. Projects selected based on clearly defined criteria lead to greater efficiency of public investments, responsible management of public funds, and better realization of strategic development goals. Currently, project proposals from the local self-government units are not always aligned with the selection criteria to be financed from the capital budget.

Therefore, the learning initiative will be about:

• Implementing the Decision on the Development of the Capital Budget in Montenegro aims to prepare and plan expenditures for the implementation of capital projects selected in accordance with the criteria outlined in the decision.
• Steps towards improvement of the management of public investments and their greater positive impact on the economy.
• The ways of selection of the matured projects.
• Full application of the criteria for selecting capital projects proposed by the local self-government units to the local budget or the Budget of Montenegro.
• Reflection on the IMF’s recommendations from the PIMA Report for Montenegro, which highlights the need to improve public investment management and increase their effectiveness.

Who should attend

This event is intended for the PFM Coordination team members responsible for working with local self-governments, as well as for the officials from the 25 local self-government units of Montenegro responsible for the budget cycle on the local level.

Faculty

The learning event will be delivered by:

• Snežana Mugoša, Ministry of Finance, Montenegro
• Nina Vujošević, CEF expert
• Branko Nilević, Ministry of Finance, Montenegro

Partners

The faculty for this event is provided from the EU-funded Action “Support to Coordination, Monitoring and Reporting on PAR Strategy and PFM Reform Programme 2022-2026” implemented by the CEF. The event will be held in CEF’s collaboration with UNDP and Ministry of Finance of Montenegro. UNDP supports the event's organization within the Project “Strengthening Public Finance Management in Montenegro,” funded by the Ministry of Finance of the Slovak Republic and jointly implemented with the Ministry of Finance of Montenegro.