Portfolio

Active Portfolio Investment Projects

Public Sector Capacity/Governance

Project Title:
Second Public Financial Management Reform Project
Grant Amount:
$114.125 million
Approval Date:
June 29, 2011
Closing Date:
June 30, 2017

Project Objective:

The Project’s development objective is to strengthen public financial management through effective procurement, treasury and audit structures and systems in line with sound financial management standards of monitoring, reporting and control.

Program Summary

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The Project: The Second Public Financial Management Reform Project (PFMRII) constitutes a second phase of support for public financial management (PFM) and builds on the outcomes of a series of IDA operations and bilateral donor technical assistance projects that have assisted the Government of Afghanistan (GOA) in establishing the legal framework for PFM and put in place the capacity at the central government level to operate PFM systems and processes for budget planning, execution and monitoring. PFMR II is entirely financed with ARTF donor financing. The objective of the new program is to strengthen public financial management in line with sound financial management standards of monitoring, reporting and control.

PFMR II is specifically designed around the new PFM Roadmap and National Priority Program. Like the first program, it continues to focus on three core areas: treasury, procurement and audit. In addition, it looks to establish the basis for an accounting profession in Afghanistan. While the project continues to support good public financial management performance developed in central control entities under the first program, support is during the second phase being extended to line ministries both at the central and the provincial levels to improve their financial management capacity.

EXPECTED RESULTS

  • Donors shift 20 % of their off-budget official development assistance to Afghanistan to on-budget;
  • PEFA ratings for internal audit (P-21) improve to B;
  • PEFA ratings for internal audit (P-26) improve to B;
  • At least 50 % of procurement under the budget is done by line ministries;
  • Conducting stand-alone procurement;
  • Increased number of functions carried out by regular ministry staff that were previously carried out by contracted staff.
Second Public Financial Management Reform Project
Public Financial Management Reform Project