PROJECT TITLE:

Technical Assistance to Support the Implementation of Public Finance Management Reforms in Kosovo

OVERALL OBJECTIVE:

The overall objective of the project is to contribute to a sound financial management and improved service delivery in Kosovo by improving fiscal discipline, increasing revenue mobilisation and the strategic allocation of resources through the provision of policy advice and support to institutional and human resource capacity building in the Ministry of Finance and related institutions.

LOCATION:

Kosovo

SECTOR:

Public Administration Reform

DURATION:

36 months (2020 - 2024)

VALUE:

EUR 3,1000,000.00

PROJECT PURPOSES:

The purposes of this contract is to improve and strengthen policies, legislation and capacities of key stakeholders (in particular the Public Finance Management Coordination Group) involved in implementation of the Public Finance Management Sector Reform Program by providing technical assistance to support the implementation of the Public Finance Management reforms.

BENEFICIARIES:

Ministry of Finance, Public Finance Management Coordination Group

ACTIVITIES:

Result 1 activities: Support to Ministry of Finance, Public Finance Management Coordination Group and its Secretariat in policy development, coordination, reporting and implementation, of the Public Finance Management reforms; Support the Ministry of Finance, Public Finance Management Coordination Group and its Secretariat with capacity to coordinate the overall Public Finance Management reform and its implementation, which requires close coordination and collaboration with involved institutions, partner community, International Development Partners and civil society organisations; Support the Public Finance Management Coordination Group in drafting new Public Finance Management Reform Strategy 2021-2025; Through the Public Finance Management Coordination Group, advice the Minister of Finance with regard to issues related to the over-arching structure and workings of the Public Finance Management system in Kosovo; and, If required, improve the capacity of the Ministry of Finance to further align legislation to be developed with the EU acquis. Result 2 activities: Support the Central Harmonization Department with capacity building of Financial Management and Control staff and development of monitoring methodology of internal control implementation in Budgetary Organizations; Support the Central Harmonization Department on certification of internal auditors and additional capacity building of internal auditors especially with regard to reports, recommendations and overall communication and advice to the management of the budgetary organizations. Support the Central Harmonization Department in policy and strategic development and preparation of annual reports; Support the Central Harmonization Department in its work with Budgetary Organizations to improve the capacity to implement internal and external audit recommendations; Support the Central Harmonization Department with development and revision of sub-legal acts related to the Law on Public Internal Financial Control, as relevant; Result 3 activities: Support the Tax Administration of Kosovo and Kosovo Customs on fighting fiscal evasion, informalities , and increasing the efficiency in revenue collection; Support the Kosovo Tax Administration with development activities, such as the development of a tax audit guideline for the financial sector, development and provision of a training programme for financial sector tax audit and the development of a manual and training programme on transfer pricing; and, Support the Kosovo Customs in strengthening the administrative capacity of Customs with regard to for example the fulfilment of gaps identified by the Customs Blueprints and the alignment of legislation with the EU aqcuis. Result 4 activities: Support key public procurement bodies in their regulatory, advisory, monitoring and oversight role with the aim of enhancing effectiveness of the public procurement, ensuring better value for money, drafting and implementation of the public procurement legal framework in Kosovo. Support the Central Procurement Agency with the development of an analytical framework for selection of items to be procured centrally and with increasing the value-for money of centralized procurement cycle by improving market research capacities, tender publication, tender assessment and contract implementation; Support the Central Procurement Agency staff with analytical data to be used to report, among others, benefits gained from centralized procurements; Support the Public Procurement Regulatory Commission with the legislative reform of the public procurement law including in further harmonising with the European Union acquis and streamlining the Public Procurement law between primary and secondary legislation; Support and provide on-job training, workshops and when absolutely necessary needed and well-justified study visits (share of best practices in European Union and or the region) to the essential staff of the Public Procurement Regulatory Commission, Procurement Review Body and Central Procurement Agency in improving the Public Procurement System. Support the Procurement Review Body in drafting better quality decisions; Support the establishment of effective communication channels for peer learning and sharing of information between the Public Procurement institutions (Public Procurement Regulatory Commission, Public Procurement Review Body and Central Procurement Agency).

RESULTS:

– Result 1: Improved policy and legislative developments (and when needed further alignment of Public Finance Management legislation with the European Union acquis), implementation and monitoring of the Public Finance Management Reform Strategy, focusing on the role of the Ministry of Finance PFM Coordination Group as propos policies, coordinating, monitoring and reporting body. Increased fiscal discipline, allocation and operational efficiency through strengthening annual budget credibility for central government and increased transparency of the management and usage of public funds. – Result 2: Strengthened internal control and internal audit, by enhancing the internal audit function as a value-added service towards management accountability and by strengthening internal controls in budgetary organisations. – Result 3: Domestic revenue collection increased by expanding the revenue base, fighting fiscal evasion and informalities, and increasing the efficiency of the revenue collection agencies. – Result 4: Increased efficiency, value-for-money and transparency of public procurement in Kosovo by ensuring efficient implementation of the centralised procurement, as well as improving other aspects of public procurement.