Government launch Public Investment Management System

Accra, Sept. 25, GNA – Government has launched
the Public Investment Management System (PIMS) to ensure effective and
efficient management and delivery of infrastructure projects.

The PIM system is part of the grand reform
agenda of government to electronically integrate all financial management
operations, and bring efficiency to government business.

It aims to establish a well-defined and
transparent guidelines and procedures for project selection to ensure that only
viable projects with significant economic benefits receive funding.

Also, it is to implement appropriate procedures
for tracking project implementation and evaluating the impact of investment
spending.

Launching it, Mr Ken Ofori-Atta, the Minister
of Finance, said the design of a PIMS, which enhances the quality of public investment
by strengthening the links between the National Medium-term Development
Strategy, National Infrastructure and Sector Plans and the annual budget was in
order.

He said government was adopting a multi-pronged
strategy to enhance public investment management and the productivity of public
investment, including institutionalizing the legal and regulatory framework to
guide and enforce PIM operations in the country.

Mr Ofori-Atta said the Ministry, as part of
the effort at improving the regulatory framework for PIM, had also initiated processes
for the passage of a PIM regulation by Parliament, with associated guidelines
and templates to further guide Ministries, Departments and Agencies, the
Metropolitan, Municipal and District Assemblies and State owned Enterprises in
their project preparation, prior to submission of projects for financing.

There is also a move to operationalize PIMS to
consolidate all the currently scattered project systems in various MDAs/MMDAs/SOES
to allow for a comprehensive view of projects to inform public policy and
strategy.

Mr Ofori-Atta said consistent with the grand
agenda of integration, the PIMS would run as a database for all public
infrastructure projects, irrespective of their funding sources.

It will transmit prioritised coded projects through
the Public Investment Plan (PIP), the budget module and implemented in GIFMIS
financial, he said.

In this direction, a high level PIP Working Committee
has been established at the Ministry of Finance that will review a project
analysis and appraisal memorandum submitted to it the Public Investment
Division (PID).

The Working committee will prioritize, and
rank projects that have been judged acceptable from a technical standpoint, to
feed into the pipeline of projects that would ultimately be considered by
Cabinet.

“The PIP will be the source from which
projects are selected for funding and implementation in the annual budget,” the
Minister said.

He said there are also plans to increase private
sector participation in investment projects through Public-Private Partnerships
(PPPs), in view of the narrow fiscal space to undertake huge capital
infrastructure projects.

Mr Ofori-Atta said the government was currently
looking at leveraging existing resources to invite the private sector to
participate in the delivery of public infrastructure, especially in the transportation
and energy sectors of the economy.

Mr Henry Kerali, World Bank Country Director,
said Ghana’s lower middle income status required improved productivity,
efficiency, and effectiveness of public expenditures and more sustainable
public finances to mitigate financing costs, especially at the time of high
demand for development spending.

He said it was critical to ensure that Ghana’s
PIM framework delivers strategic and cost-effective capital investments, through
sound investment project cycle management.

“We believe that the establishment of the PM system
will help resolve most of the existing challenges and enable timely linkage of
all capital projects to the national budget,” Mr Kerali said.

He expressed the hope that the new PIM system
would bring clarity in roles and responsibility that hinder the effectiveness
of implementing capital projects and help government to focus on high impact capital
projects in the midst of scare resources.

GNA

قالب وردپرس

Comments