Public Financial Management Improvement Project

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The objective of the Public Financial Management Improvement Project for West Bank and Gaza is to enhance the expenditure controls, financial accountability and procurement management of the Palestinian Authority. There are four components to the project, the first component being improving budget expenditure management and control. This component will address core weaknesses with the current expenditure management and control mechanisms through four subcomponents: improving budget expenditure management, financial control and cash planning, establishing medical e-referrals system linkages with commitment control system, enhancing MoFP management of intergovernmental fiscal transfers, and enhancing the wage bill establishment control. The second component is the improving financial accountability of the PFM system. This component will address the core weaknesses with the current financial accountability of the Palestinian system through four subcomponents: aligning accounting/reporting with international standards, improving the bank reconciliation process, reducing the backlog of financial statements of the PA, and enhancing SAACB’s capacity to audit bank’s projects on a pilot basis. The third component is the modernizing public procurement. This component will support the implementation of key aspects of the 2014 Public Procurement Law (PPL) by the High Council of Public Procurement Policies (HCPPP), in coordination with the two central procuring entities; namely Ministry of Public Works and Housing, Central Tendering Department (MoPWH-CTD) and Ministry of Finance and Planning, General Supplies Department (MoFP-GSD), and other procuring entities at the central and local levels. This component has three subcomponents as follows: institutional strengthening of HCPPP, development of modern procurement tools, and capacity building of the procurement workforce and other stakeholders. Finally, the fourth component is the project implementation support and management costs. This component finances costs related to project management and capacity building at the MoFP throughout the life of the project. It will provide support for project implementation, coordination, monitoring and evaluation, including fiduciary control, external audit and oversight, and prepation of project reports.