NI Public Financial Management Modernization Project

closed

The objective of the Public Financial Management Modernization Project is to enhance the efficiency, performance orientation, and transparency of Nicaragua's public expenditures management. This project has four components. Component one includes the strengthening of institutional capacities of the Ministry of Finance. The objective of this component is to strengthen institutional capacities and support the operation of rector entities within the Ministry of Finance to comply with their institutional mandates set out in Law 550, while at the same time prepare for the implementation of a renewed financial management information system. Component two consists of the design, acquisition, and development of a renewed Integrated Financial Management System SIGAF (Administrative and Financial Management Information System). This component will focus on the modernization of the public financial management information system by developing a new functional model, which will consolidate and integrate all the core financial management and administrative processes of the central government, with the possibility to be expanded and implemented by decentralized entities and municipalities, under the scope of a management-by-results approach. Component three comprises of implementation of SIGAF and public financial management capacity building in central government agencies. This component will support the installation and roll-out of the new SIGAF in the central government defined as all ministries and several large agencies (and eventually in all decentralized agencies and municipalities depending on resource availability), and will also provide the capacity building efforts to develop users' capabilities to operate the system in a sustainable manner. Component four is project management. This component would provide support to the borrower's Ministry of Finance (MHCP) to oversee and administer the implementation of the project including Bank's funding as well as the co-financing funds.