|Approval Date||15 Dec 2017|
|Signature Date||16 Jan 2018|
|Planned Completion Date||30 Jun 2022|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||15124|
The proposed intervention concerns the second phase of the Economic and Financial Governance Institutional Support Project in Somalia. This is part of the Bank’s continuous engagement with countries in fragile situation as well as a response to a specific request from the Federal Government of Somalia to support the government’s state building efforts. The project will contribute to capacity enhancement in macroeconomic management through strengthened revenue and PFM institutions, as well as improving transparency and accountability for better public service delivery. It builds on the work of the previous financial governance projects, and aims to consolidate their achievements. Specific areas that will be maintained include support to debt management and budget preparation. The project has three mutually reinforcing components: (i) Strengthening macro-economic planning and management (ii) Enhancing control, transparency and accountability in the use of public resources, and (iii) strengthening capacity for project management. The expected outcomes are: (i) Enhanced domestic revenue mobilization which will be measured through increased revenue to GDP ratio, and; (ii) Improved fiscal space to increase share of budget allocated to social sectors. The project will be implemented over the period 2018-2020 with a total cost (exclusive of tax and customs duty) estimated at UA 5.5 million, including contingencies.
The overall development objective of the project is to strengthen macroeconomic management and enhance transparency and accountability in the use of public resources. The project will seek to enhance the institutional and operational effectiveness of selected institutions within government through developing policy frameworks, support implementation of new fiduciary instruments (PFM and Procurement), revenue mobilization strategy, support training and skills transfer, and provide technical assistance, ICT infrastructure and equipment support.
The direct project beneficiaries are the Ministry of Finance core departments( Budget, Procurement, Internal Audit, Debt Management Unit, Inland Tax Department, Office of the Auditor General); and infrastructure ministries notably: Energy and Water Resources, Ports and Marine Transport as well as Transport and Civil Aviation. The project will benefit the government and the people of Somalia through building the weak human and institutional capacity in the domestic revenue administration at federal level, as well as its public financial management systems. The project will also contribute to promoting good economic governance and the fight against poverty. The project is expected to result in improved service delivery in the country, arising from increased revenue collection and increased efficiencies in PFM. Most importantly, the project is expected to trigger an increase in domestic revenue collection, thus availing the much needed additional resources to finance the government’s budget deficit and create more fiscal space for funding delivery of basic public services.
Fragile States Facility
Ministry of Finance
|Last Update||24 Feb 2021|