Zimbabwe Public Investment Management Efficiency Review

Abstract

The Public Investment Management (PIM)
 efficiency review is intended to support the Government of
 Zimbabwe, and in particular the Ministry of Finance, in its
 efforts to strengthen the efficiency of the public
 investment system, with the goal of improving the creation,
 operation and maintenance of public sector capital assets
 that support service delivery and economic growth. The
 problems of public investment management are not merely
 financial but systemic. Budget execution deficit remains a
 major bottleneck. Due to large backlogs across sectors,
 capital budget allocation has prioritized completion and
 rehabilitation of on-going and stalled projects and
 programs. Currently, public investment projects are mainly
 financed by the national budget. Regulatory frameworks for
 public-private partnerships are in place, but sluggish
 recovery from the private sector has not made it a notable
 source of financing for capital projects. Foreign loans and
 grants, and humanitarian aid from donors are not channeled
 through the official budget. This report is intended to
 provide the basis for a follow-on discussion with government
 on possible options and approaches to addressing the
 identified problems, focusing on those which are the most
 critical to Zimbabwe's economic recovery and long term
 development. It is complementary to the action plan, also
 developed by the team for consideration by the Government of
 Zimbabwe, which suggests a list of reform actions over the
 immediate to medium-term to strengthen the regulatory
 framework and build capacity across central and implementing
 agencies. The objective of the policy note is to support the
 Government of Zimbabwe to strengthen the efficiency of PIM
 system, with an ultimate goal of contributing to improved
 governance, service delivery, and economic growth. The study
 will inform a reform and capacity strengthening action plan
 with the Government as well as subsequent Bank's
 proposed technical assistance program to strengthen the PIM.