Building Effective, Transparent and Accountable Public Financial Management Institutions Project

Abstract*

Reflecting the objectives of the Government’s 2018-2021 public financial management reform program, the proposed Project aims to strengthen the efficiency, transparency and sustainability of public expenditure and increase the effectiveness of revenue administration in North Macedonia through a comprehensive and whole of government approach to strengthening both the expenditure and revenue sides of the public financial management cycle that takes... Show More

Development Objective

To improve the efficiency, transparency and sustainability of public expenditure and increase the effectiveness of revenue administration.

Key Details

Project Details

Project ID
P176366
Status
Active
Team Leader
Mediha Agar , Cem Dener
Borrower 2
Republic of North Macedonia

Country
North Macedonia
Disclosure Date
July 19, 2021
Approval Date
(as of board presentation)
December 14, 2022
Effective Date
April 20, 2023

Total Project Cost 1
US$ 24.55 million
Implementing Agency
The Ministry of Finance of the Republic of North Macedonia
Region
Europe and Central Asia
Fiscal Year 3
2023

Commitment Amount
US$ 24.55 million
Environmental Category
N/A
Last Update Date
January 8, 2024
Closing Date
September 30, 2027

Consultant Services required
Yes
Last Stage Reached
BANK APPROVED

Notes
1. Total project cost includes funding from World Bank and non-bank sources in US$ millions. Active and Closed projects show current commitments. Proposed (pipeline) and dropped projects show the forecast amount. The commitment amount for projects in the pipeline is indicative and may be modified during the project preparation.
2. Borrower refers to the Borrower of a Loan or Recipient of a Grant.
3. ”Fiscal Year” is the fiscal year in which the project was approved (or dropped if the status is dropped). The World Bank's fiscal year is from July 1 - June 30. For example, a fiscal year of 1996 corresponds to July 1, 1995 - June 30, 1996.

Sectors

Themes

FY17 - Environment and Natural Resource Management

FY17 - Climate change5%
- FY17 - Adaptation3%
- FY17 - Mitigation2%

FY17 - Human Development and Gender

FY17 - Gender100%

FY17 - Private Sector Development

FY17 - ICT100%
- FY17 - ICT Solutions100%
FY17 - Public Private Partnerships67%

FY17 - Public Sector Management

FY17 - Public Administration100%
- FY17 - E-Government, incl. e-services41%
- FY17 - Public Assets and Investment Management67%
- FY17 - Transparency, Accountability and Good Governance67%
FY17 - Public Finance Management100%
- FY17 - Domestic Revenue Administration41%
- FY17 - Public Expenditure Management67%

FY17 - Social Development and Protection

FY17 - Social Inclusion100%
- FY17 - Participation and Civic Engagement100%

FY17 - Urban and Rural Development

FY17 - Disaster Risk Management67%
- FY17 - Disaster Response and Recovery67%

Project Map

Interactive Map

Finances

Financing Plan (US$ Millions)

Financier	Commitments
Free-standing TF for ECA	4.78
International Bank for Reconstruction and Development	19.77

Total Project Financing (US$ Millions)

Product Line	IBRD/IDA
IBRD Commitment	19.77
IDA Commitment	N/A
IBRD + IDA Commitment	19.77

Lending Instrument
Grant Amount	4.78
Total Project Cost**	24.55

Summary Status of World Bank Financing (US$ Millions) as of March 31, 2025

No data available.

Detailed Financial Activity as of March 31, 2025

Download:

Period	Financier	Transaction Type	Amount (US$)
Dec 14, 2022	IBRD-94540	Loan Commitment	19,770,000.00
Mar 15, 2024	IBRD-94540	Loan Disb	60,586.84
May 15, 2024	IBRD-94540	Int Charges	27,451.78
May 15, 2024	IBRD-94540	Int Charges	25,414.05
Apr 20, 2023	IBRD-94540	Loan Disb	54,857.50
Nov 16, 2023	IBRD-94540	Loan Disb	65,227.79
Jun 21, 2023	IBRD-94540	Loan Disb	1,091,900.00
Nov 15, 2023	IBRD-94540	Int Charges	7,433.16
Nov 15, 2023	IBRD-94540	Int Charges	124.12
Nov 15, 2023	IBRD-94540	Int Charges	26,225.76
Nov 15, 2023	IBRD-94540	Int Charges	19,188.58
Apr 20, 2023	IBRD-94540	Fee Charges	54,857.50

Footnotes

Ratings

IMPLEMENTATION RATINGS

Name	Review	Date
Procurement	Satisfactory	2024-07-19
Project Management	Satisfactory	2024-07-19
Progress towards achievement of PDO	Satisfactory	2024-07-19
Financial Management	Satisfactory	2024-07-19
Monitoring and Evaluation	Satisfactory	2024-07-19
Overall Implementation Progress (IP)	Satisfactory	2024-07-19

COMPLETION RATINGS

No data available.

INDEPENDENT EVALUATION RATINGS

No data available.

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

Comprehensiveness of publicly published general government reporting	Value	Annual Budget preparation and budget execution rep	Annual Budget preparation and budget execution rep	Regulatory agencies, independent institutions PEs
	Date	December 31, 2021	November 22, 2023	September 30, 2027
	Comment

General government arrears as a percent of total general government expenditures Value 8.9 percent 8.9 percent 5.9 percent
Date December 31, 2021 November 22, 2023 September 30, 2027
Comment

Integration of climate change considerations into project screening	Value	Climate considerations not contemplated in project	Climate considerations not contemplated in project	80 percent of new large projects have been screene
	Date	December 31, 2021	November 22, 2023	September 30, 2027
	Comment

VAT compliance gap Value 22 percent of VTTL 22 percent of VTTL 19 percent of VTTL
Date December 31, 2021 November 22, 2023 September 30, 2027
Comment

INTERMEDIATE RESULTS INDICATORS

INDICATOR		BASELINE	CURRENT	TARGET

New IFMIS is operational Value No IFMIS No IFMIS At least 95 percent of payments processed through
Date December 31, 2021 November 22, 2023 September 30, 2027
Comment
Adoption and implementation of change management and communication plans Value None None 80 percent of agreed upon change management and co
Date December 31, 2021 November 22, 2023 September 30, 2027
Comment
Domestic revenue collections of VAT coming from voluntary compliance initiatives Value 90.59 percent 90.59 percent 95 percent
Date December 31, 2021 November 22, 2023 September 30, 2027
Comment

Required time for the processing of payments through the IFMIS and Treasury Single Account interface	Value	No IFMIS; 30 days for entities to submit the invoi	No IFMIS; 30 days for entities to submit the invoi	5 days for entities to submit invoices to Treasury
	Date	December 30, 2021	November 22, 2023	September 30, 2027
	Comment

Development and implementation of learning toolkit for new processes and competencies	Value	No learning toolkit	No learning toolkit	Knowledge product of lessons learned from the tool
	Date	December 31, 2021	November 22, 2023	September 30, 2027
	Comment

Rate of on time tax payment (VAT)	Value	Rate on number of timely payments - 60% (2021)Rat	Rate on number of timely payments - 60% (2021)Rat	Rate on number of timely payments - 90% (2025)Rat
	Date	December 31, 2021	November 22, 2023	September 30, 2027
	Comment

Preparation of the annual budget including climate and gender tagging through the IFMIS	Value	Budget prepared through fragmented systems, and cl	Budget prepared through fragmented systems, and cl	Program based budgeting is fully supported through
	Date	December 31, 2021	November 22, 2023	September 30, 2027
	Comment

Enhanced ITIS Operational	Value	The current ITIS does not have the functionalities	The current ITIS does not have the functionalities	Improved availability of the MDC and DRC
	Date	December 31, 2021	November 22, 2023	September 30, 2027
	Comment

Open Budget Index Score (transparency) Value 36 out of 100 36 out of 100 61 out of 100
Date December 30, 2021 November 22, 2023 September 30, 2027
Comment
Percentage of VAT refund requests processed within 30 days Value 7.56 7.56 15.00
Date December 31, 2021 November 22, 2023 September 30, 2027
Comment

Use of systematic tool for monitoring and responding to citizen feedback on PFM policy decisions and strategic investment projects.	Value	Government engaged in consultations on new laws an	Government engaged in consultations on new laws an	Annual report on the Government’s response to citi
	Date	December 31, 2021	November 22, 2023	September 30, 2027
	Comment

Frequency of SAMIS generated reporting on state aid	Value	SAMIS does not exist; reports on state aid are not	SAMIS does not exist; reports on state aid are not	Monthly reports generated by the SAMIS
	Date	December 31, 2021	November 22, 2023	September 30, 2027
	Comment

Implementation of PIM guidelines and manuals including procedures for integrating climate considerations into the project management cycle	Value	No dedicated guidelines or standard criteria for t	No dedicated guidelines or standard criteria for t	Application in 90 percent of entities
	Date	December 31, 2021	November 22, 2023	September 30, 2027
	Comment

General government arrears as a percent of total general government expenditures	Value	8.9 percent	8.9 percent	5.9 percent
	Date	December 31, 2021	November 22, 2023	September 30, 2027
	Comment

VAT compliance gap	Value	22 percent of VTTL	22 percent of VTTL	19 percent of VTTL
	Date	December 31, 2021	November 22, 2023	September 30, 2027
	Comment

New IFMIS is operational	Value	No IFMIS	No IFMIS	At least 95 percent of payments processed through
	Date	December 31, 2021	November 22, 2023	September 30, 2027
	Comment

Adoption and implementation of change management and communication plans	Value	None	None	80 percent of agreed upon change management and co
	Date	December 31, 2021	November 22, 2023	September 30, 2027
	Comment

Domestic revenue collections of VAT coming from voluntary compliance initiatives	Value	90.59 percent	90.59 percent	95 percent
	Date	December 31, 2021	November 22, 2023	September 30, 2027
	Comment

Open Budget Index Score (transparency)	Value	36 out of 100	36 out of 100	61 out of 100
	Date	December 30, 2021	November 22, 2023	September 30, 2027
	Comment

Percentage of VAT refund requests processed within 30 days	Value	7.56	7.56	15.00
	Date	December 31, 2021	November 22, 2023	September 30, 2027
	Comment

Building Effective, Transparent and Accountable Public Financial Management Institutions Project

Abstract*

Development Objective

Key Details

Project Details

Sectors

Themes

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Project Map

Finances

Financing Plan (US$ Millions)

Total Project Financing (US$ Millions)

Summary Status of World Bank Financing (US$ Millions) as of March 31, 2025

Detailed Financial Activity as of March 31, 2025

Ratings

IMPLEMENTATION RATINGS

COMPLETION RATINGS

INDEPENDENT EVALUATION RATINGS

Results Framework

PROJECT DEVELOPMENT OBJECTIVE INDICATORS

INTERMEDIATE RESULTS INDICATORS