US$25 Million Loan as Additional Financing for
Public Financial Management Modernization Program
WASHINGTON, December 9, 2014 – The World Bank (WB) Board of Executive Directors approved a US$25 million loan today as additional financing for a project aimed at modernizing public financial management in Nicaragua, making the public acquisition and auditing systems more efficient and improving accountability mechanisms
The “Public Financial Management Modernization Program in Nicaragua” project, originally approved in December 2010, increased the number of government agencies using results-based methodologies in the preparation of multi-annual budgets by 23 percent, while managing to have 50 percent of public acquisitions published online via the Nicaragua Compra webpage (www.nicaraguacompra.gob.ni). The goal is to publish 90 percent of public acquisitions online
“Through this additional financing, we will be able to expand implementation coverage, guarantee an alternative online database as back-up to provide continuity to financial operations in case of a natural phenomenon, as well as strengthening the Association of Public Accountants. We are highly satisfied with the commitment to work in coordinated manner with the World Bank to achieve the proposed goals,” said the Minister of Finance and Public Credit, Ivan Acosta
This project has been supporting the widespread use of a more precise and timely financial management information system at all levels, from central government to spending units. This allows for a more efficient decision-making process of budgetary allocation and a more effective and transparent follow-up and monitoring process of government financial flows. The project, implemented by the Ministry of Finance, began with a US$10 million investment and is co-financed by the Inter-American Development Bank and the European Union
In the last decade, Nicaragua has shown it is committed to the modernization of public financial management. This additional financing is geared toward consolidating this process, providing the Ministry of Finance with the tools needed to expand the implementation of a modern electronic system at all executing unit levels,” explained Luis Constantino, World Bank Representative in Nicaragua
This additional financing will also support the adoption of international accounting and auditing guidelines and standards on the part of Nicaragua. Moreover, it will enable the modernization of the statistical system prior to the Population and Housing Census of 2017, financing will be used to update cartographical registries with state-of-the-art technology and strengthen the National Institute for Development Information’s (INIDE) institutional capacity
The US$25 million credit is provided by the International Development Association (IDA) with a 40-year maturity period, including a ten-year grace period
