Good Practices

Public Investment Management Assessment (PIMA) has enabled countries to explore different aspects of public investment management and understand how their systems are designed and how they work in practice. 

The PIMA framework has allowed countries to identify the efficiencies and weaknesses of their public investment. Below are highlighted good practices from some of our member countries (for more details click on the specific Box link).

Institution 1: Fiscal Targets and Rules

Dimension 1.a: Is there a target or limit for government to ensure debt sustainability?

Box 5.1. Ireland Debt Rule and Other Fiscal Rules

Dimension 1.b: Is fiscal policy guided by one or more permanent fiscal rules?

Box 5.2. Public Finance Act in Bulgaria

Dimension 1.c: Is there a medium-term fiscal framework to align budget preparation with fiscal policy?

Box 5.3. Medium-Term Fiscal Framework in Estonia

Institution 2: National and Sectoral Planning

Dimension 2.a: Does the government prepare national and sectoral strategies for public investment?

Box 5.4. Botswana National Development Plan

Dimension 2.b: Are the government’s national and sectoral strategies or plans for public investment costed?

Box 5.5. Strategic Investment Planning in Ireland

Dimension 2.c: Do sector strategies include measurable targets for the outputs and outcomes of investment projects?

Box 5.6. National Planning in Malaysia

Institution 3: Coordination between Entities

Dimension 3.a: Is capital spending by SNGs coordinated with the central government?

Box 5.7. Subnational Government Investments in Chile

Box 5.8. Subnational Government Investments in Indonesia

Dimension 3.b: Does the central government have a transparent, rule-based system for making capital transfers to subnational governments and for providing timely information on such transfers?

Box 5.9. Coordination of Investments and Transfer of Funds to SNGs in Mali

Dimension 3.c: Are contingent liabilities arising from capital projects of subnational governments, public corporations, and public-private partnerships reported to the central government?

Box 5.10. Disclosure of Contingent Liabilities in Slovak Republic

Institution 4: Project Appraisal

Dimension 4.a: Are major capital projects subject to rigorous technical, economic, and financial analysis?

Box 5.11. Project Appraisal in Colombia

Box 5.12. Standardized Appraisal Methodology in Timor-Leste

Dimension 4.b: Is there a standard methodology and central support for the appraisal of projects?

Box 5.13. Project Appraisal Guidelines and Central Support in Slovak Republic

Box 5.14. Discount Rates for Cost-Benefit Analysis

Dimension 4.c: Are risks taken into account in conducting project appraisals?

Box 5.15. Project Risks and Contingency Reserves in Norway

Institution 5: Alternative Infrastructure Financing

Dimension 5.a: Does the regulatory framework support competition in contestable markets for economic infrastructure (for example, power, water, telecoms, and transport)?

Box 5.16. Competition in Infrastructure Markets in Ireland

Dimension 5.b: Has the government published a strategy/policy for PPPs and a legal/regulatory framework that guides the preparation, selection, and management of PPP projects?

Dimension 5.c: Does the government oversee the investment plans of PCs and monitor their financial performance?

Box 5.17. Public Corporation Oversight in Brazil

Institution 6: Multiyear Budgeting

Dimension 6.a: Is capital spending by ministry or sector forecasted over a multiyear horizon?

Box 6.1. Medium-Term Capital Spending Projections in Jordan

Dimension 6.b: Are there multiyear ceilings on capital expenditure by ministry, sector, or program?

Box 6.2. Multiyear Programming in Mali

Dimension 6.c: Are projections of the total construction cost of major capital projects published?

Box 6.3. Capital Spending Development Fund in Kiribati

Institution 7: Budget Comprehensiveness and Unity

Dimension 7.a: Is capital spending mostly undertaken through the budget?

Box 6.4. Budget Comprehensiveness in Armenia

Dimension 7.b: Are all capital projects, regardless of financing source, shown in the budget documentation?

Box 6.5. All Capital Projects Shown in Budget Documents in Timor-Leste

Dimension 7.c: Are capital and recurrent budgets prepared and presented together in the budget?

Institution 8: Budgeting for Investment

Dimension 8.a: Are total project outlays appropriated by the legislature at the time of a project’s commencement?

Box 6.6. OECD Multiyear Budgeting Practices

Dimension 8.b: Are in-year transfers of appropriations (virement) from capital to current spending prevented?

Box 6.7. Budgeting for Capital Investment in Jordan

Dimension 8.c: Is the completion of ongoing projects given priority over starting new projects?

Box 6.8. Capital Budgeting Practices in the Philippines

Institution 9: Maintenance Funding

Dimension 9.a: Is there a standard methodology for estimating routine maintenance needs and budget funding?

Box 6.9. Maintenance Practices in Estonia

Dimension 9.b: Is there a standard methodology for determining major improvements (for example renovations, reconstructions, enlargements) to existing assets, and are they included in national and sectoral investment plans?

Box 6.10. Maintenance Guidelines for Public Infrastructure in South Africa

Dimension 9.c: Can expenditures relating to routine maintenance and major improvements be identified in the budget?

Box 6.11. Budget Visibility of Maintenance Spending in Armenia

Institution 10: Project Selection

Dimension 10.a: Does the government undertake a central review of major project appraisals before deciding to include projects in the budget?

Box 6.12. Central Review of Project Appraisals in Ireland

Dimension 10.b: Does the government publish and adhere to standard criteria, and stipulate a required process for project selection?

Box 6.13. Project Selection Process and Criteria in Mexico

Dimension 10.c: Does the government maintain a pipeline of appraised investment projects for inclusion in the annual budget?

Box 6.14. Integrated Project Pipeline in Chile

Institution 11: Procurement

Dimension 11.a: Is the procurement process for major capital projects open and transparent?

Box 7.1. Procurement in Bulgaria: Legal Framework and Institutions

Box 7.2. World Bank’s Alternative Procurement Arrangements

Dimension 11.b: Is there a system in place to ensure that procurement is monitored adequately?

Box 7.3. Electronic Procurement System in Bangladesh

Dimension 11.c: Is the procurement complaints review process conducted in a fair and timely manner?

Box 7.4. Procurement Complaints Mechanism in Estonia

Institution 12: Availability of Funding

Dimension 12.a: Are ministries/agencies able to plan and commit expenditure on capital projects in advance on the basis of reliable cash flow forecasts?

Box 7.5. Cash Forecasting in Armenia

Dimension 12.b: Is cash for project outlays released in a timely manner?

Box 7.6. Legal Framework for Cash Rationing in Moldova

Dimension 12.c: Is external (donor) funding of capital projects fully integrated into the main government bank account structure?

Box 7.7. Banking Arrangements for External Funds in Mauritius

Institution 13: Portfolio Management and Oversight

Dimension 13.a: Are major capital projects subject to monitoring during project implementation?

Box 7.8. S-Curve Project Monitoring

Box 7.9. Portfolio Monitoring in Honduras

Box 7.10. Project Monitoring and Ex Post Project Reviews in Malaysia

Dimension 13.b: Can funds be reallocated between investment projects during implementation?

Dimension 13.c: Does the government adjust project implementation policies and procedures by systematically conducting ex post reviews of projects that have completed their construction phase?

Box 7.10. Project Monitoring and Ex Post Project Reviews in Malaysia

Institution 14: Management of Project Implementation

Dimension 14.a: Do ministries/agencies have effective project management arrangements in place?

Box 7.11. Project Implementation Plan

Dimension 14.b: Has the government issued rules, procedures, and guidelines for project adjustments that are applied systematically across all major projects?

Box 7.12. Project Adjustments in Korea

Dimension 14.c: Are ex post audits of capital projects routinely undertaken?

Box 7.13. Ex Post Audit of Capital Projects in Mongolia

Institution 15: Monitoring of Public Assets

Dimension 15.a: Are asset registers updated by surveys of the stocks, values, and conditions of public assets regularly?

Box 7.14. Fixed Asset Recording in Indonesia

Dimension 15.b: Are nonfinancial asset values recorded in the government financial accounts?

Box 7.15. Accounting for Fixed Assets in Estonia

Dimension 15.c: Is the depreciation of fixed assets captured in the government’s operating statements?

Box 7.16. Recording and Depreciation of Fixed Assets in Georgia


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