The objective of this program is to assist the Government of Guyana efforts to streamline the public expenditure cycle by supporting modernization of two areas:
- public procurement; and
- public financial management (PFM).
The program will provide the Ministry of Finance (MoF) the tools and expertise to make more efficient the allocation and management of public resources.
Guyana’s economic outlook remains strong on the back of its eighth year of economic growth in 2013, maintaining an average real Gross Domestic Product (GDP) growth of 4.3% from 2006 to 2013. The Bank, as part of the Highly Indebted Poor Country (HIPC) debt relief initiative, cancelled US$356.5 million of Guyana’s outstanding debt in 2007. This debt relief has contributed to improve the country’s debt profile and increase its levels of spending focused on Guyana’s poorest and most vulnerable people.
Additionally, the Government of Guyana has engaged in a series of governance reforms during the period 2003-2011, yielding significant improvements in key PFM areas such as accounting, recording and reporting of public expenditures.
- The Government of Guyana plans to leverage these PFM gains within the implementation of the Low Carbon Development Strategy (LCDS),
- which will require the streamlining of the allocation of public resources as well as increase efficiency in public procurement expenditure management.
The Integrated Fiduciary Assessment (IFA) which was carried out in 2013 has identified important reforms being carried out in the areas of procurement and PFM.
It provides an outline of gaps and proposed measures to improve specific areas such as comprehensiveness of budget, payroll and cash management, pensions and accounting and public procurement operations. The proposed Technical Cooperation (TC) will provide significant added value by providing a roadmap for procurement modernization, including strategic planning and introduction of electronic government procurement systems (e-GP). Additionally it will improve the Government of Guyana’s public financial management by supporting the streamlining of processes and introduction of necessary technological upgrades. Finally, the TC will provide training across the board to support all activities within the operation.
This TC will build on the activities carried out under the Program to Enhance the Public Financial Management System (GY-T1073), which modernized PFM tools and provided the GoG with training, dissemination, and technical support studies.
The TC is aligned with Country Strategy 2012-2016 (GN-2690), which prioritizes the area of public sector management in order to collaborate with the Government of Guyana’s efforts to continue improving PFM, as this is a key element for achievement of the LCDS goals. In addition, the TC is consistent with the Bank’s target for lending to poverty reduction and to the less developed countries of the region. Finally, it also contributes to the number of public financial systems implemented or upgraded (budget, treasury, accounting, debt, procurement), result indicator for GCI-9.