Integrated joint financing "PBL reform program of municipal management I and II"

completed

The project to reform municipal management consists of two phases that build on each other in terms of content. The project is designed as sectoral budget support. After the implementation of the sectoral reform steps agreed with the Peruvian government, the funds will be paid out to the Ministry of Economic Affairs and Finance and included in the general budget. The FC measure will support the modernization of local authorities in the areas of public financial policy and administration, accountability and debt problems. The project is part of the development cooperation program Good Governance in Peru and operates in two of the three identified fields of action. In the field of decentralization, social cohesion and citizen participation, the local administrations, the economic and social infrastructure of the municipalities and the social services of the state are to be improved. In the field of public finances and accountability, municipal financial management is promoted through improved revenue structure and transparency, accountability and control. By consolidating public finances at the subnational level and improving the performance of the public service, the subnational governments are strengthened financially and administratively. The reform program is being implemented by the Ministry of Economic Affairs and Finance (MEF), which is responsible for implementing all program-oriented joint financing. The planned FC development loan will have a volume of up to EUR 30 million and will consist of FC funds of EUR 8 million and KfW market funds of EUR 22 million as integrated joint financing (IVF).