World Bank approves loan for public finance management

A project titled Enhancing Public Finance Management through Information and Communication Technology and Skills (E-FITS) will be carried out in Laos to improve financial reporting and develop administrative capacity for revenue collection, public procurement, and budget execution.
Laos will also benefit from the Public Financial Management Reform project, with support from the European Union through the World Bank.
The World Bank has approved a loan of more than 173 billion kip (US$20 million) for the E-FITS project, while the European Union has provided a grant of EUR 1.5 million through the Trust Fund-World Bank for the Public Financial Management Reform project.
An agreement was signed in Vientiane on Thursday, inked by Deputy Minister of Finance Mrs Thipphakone Chanthavongsa and World Bank Country Manager for Laos, Mr Nicola Pontara. European Union Ambassador to Laos, Mr Leo Faber, witnessed the ceremony.

The E-FITS project aims to introduce a new financial management information system and a public finance management skills training programme at the Ministry of Finance.
These improvements will allow faster processing of financial statements and budget execution reports, and publication of statements online, for greater transparency.
Mrs Thipphakone said “This agreement reaffirms the commitment and cooperation between the Lao government and the World Bank in supporting the government’s priorities as outlined in its National Socio-Economic Development Plan. The project aims to improve and strengthen public finance management, which will contribute to sustaining dynamic and stable economic growth.”
Efficiency in managing public expenditure remains constrained by outdated information systems and procedures.
The improved financial management information system is expected to facilitate better cash management by the government, providing up-to-date data on available finances, real-time reporting, and improved budget execution. It can also allow for closer monitoring of outstanding bills, financial resources, and fiscal deficits.
“Laos has shown promising commitment to reforms in recent years. Now that the groundwork has been laid, the next steps are to improve the efficiency and transparency of the public financial management system,” Mr Nicola Pontara said.
“We are pleased to support the government’s high-level development objectives to strengthen public finances.”
The E-FITS project is implemented jointly with the Public Finance Management Reform project, financed by a trust fund with a EUR 1.5 million contribution from the European Union.
This project will increase the Ministry of Finance’s capacity for tax administration and revenue collection, improve the budget preparation and execution processes, and support implemen-tation of the new Law on Public Procurement.
It is a continuation of the previous Public Finance Management Modernisation programme, which ended in August 2018.

By Times Reporters
(Latest Update May 11, 2019)