EXPENDITURE MANAGEMENT OF PUBLIC INVESTMENT  PROJECTS

Feb- March 2005

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World Bank and Issues and Policy Consultants (IPC) of Lahore, entered into a contract to carry out a study of Expenditure Management of Public Investment Projects for inclusion in the World Bank’s “NWFP Economic Report”. K & P conducted the study. The TORs of the project were as under;

  • Rules/processes and practices being followed at the planning stage of public investment projects. The various steps involved in formulating public investment projects and involvement of other stake-holders, such as NGOs and the private sector.

  • Identification of projects for inclusion in public investment budgets.

  • Developing a system of forward estimates which projects the future cost implications of existing and proposed projects and programmes.

  • Processes/steps to be followed for vetting of projects in public investment budgets.

  • Study of the issues of institutional conflict of public investment projects between different levels of government, in particular between the Provincial Government and local Government for increasing effectiveness of public investments, particularly for growth enhancement and poverty reduction.

  • Criteria used for selecting public investment projects.

  • Indication of deficient checks and balances in the process.

  • Identification of the steps/processes involved after the selection of projects to get approval for release of funds. Considering the constraints / issues at the stage of project implementation.

  • Processes/practices for selection of contractors. Methods for reduction in “leakages”, pertaining to weak governance.

  • Monitoring of projects during and after implementation and methods to improve M&E of projects.

  • K&P studied all the processes and picked a number of projects in the core areas of education, health, roads, irrigation and regional development for a more detailed study. The study identified issues and constraints in the project cycle from conception to completion. This analysis provided a summary for improving budgetary practices, capacity constraints, utilization of development funds, reducing “leakages” and raising effectiveness of public spending by better identification and targeting.  These recommendations are a part of World Bank’s NWFP Economic Report (Dec 2005).

K&P believes that by working for the betterment of humanity it will assist women, the helpless & the down trodden.

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