FYR of Macedonia - Active Projects

Public Sector Management Adjustment Loan 2 (PSMAL 2)

The Public Sector Management Adjustment Loan Project is one of a series of adjustment operations, aimed at improving public sector management in Macedonia. The project will pursue five major areas of reform: 1) budget formulation, to increase the usefulness of the budget as a strategic policy instrument, and ensure that the Government is capable of formulating a budget within macroeconomic constraints; 2) budget execution, to strengthen the Treasury's control over spending commitments and extra-budgetary funds; 3) audit, to establish an internal audit department in the Ministry of Finance, and units in other key Government agencies, and, strengthen the State Audit Office's ability to focus on high risk entities; 4) procurement, to support the enactment of a new procurement law, and the creation of a specialized procurement bureau in the Ministry of Finance; and, 5) civil service, to create a mechanism to enforce civil service hiring requirements, and introduce a uniform, decompressed salary structure for civil servants. In addition, the project will support specific reforms in the health sector, including improvements in the internal control system of the Health Insurance Fund, and in the procurement of pharmaceuticals. Linked donor finance will also support technical assistance, and policy studies, aimed at improving the administration and targeting of health insurance subsidies, pension contributions, social assistance, and child allowances. Political and implementation risks shall be minimized, because key reforms will be completed prior to Board presentation, and the inclusion of a second tranche release will be contingent full compliance with reform implementation.**

Last Updated September 04 2010

Basic Information
Project Status	Closed
Region	Europe And Central Asia
Country/Area	Macedonia, former Yugoslav Republic of
Major Sector (Sector) (%)	Public Administration, Law, and Justice (Central government administration) (70%)
	Health and other social services (Health) (30%)
Old Major Sector	N/A
Old Sector	N/A
Env Category	U
Project ID	P074893
Bank Team Lead (Last Name, First)	Dillinger, William R.
Approval Date	13-MAY-2004
Closing Date	30-JUN-2005
Borrower	MINISTRY OF FINANCE OF MACEDONIA
Implementing Agency	N/A

Financial
Main Loan/Credit #	47340
IBRD Commitment *	30
IDA Commitment *	0
IBRD + IDA Commitment *	30
Grant Amount *	0
Total Project Cost *	30
Product Line	IBRD/IDA
Lending Instrument	Structural Adjustment Loan

Development Outcomes And Goals
*Targeted Thematic Outcomes...*	Supporting this Broader Dev't Goal
Improving labor markets	Empowerment, security & social inclusion (CAP)
Administrative and civil service reform	Public sector governance (CAP)
Public expenditure, financial management and procurement	Public sector governance (CAP); N/A (GPG)
Health system performance	Health (CAP)

Available Project Documents***
For a short project overview, please consult the Project Information Document if available.

	Project Performance Assessment Report (PPAR), Vol.1 -29-JUN-2010
	Implementation Completion and Results Report (ICR), Vol.1 -21-NOV-2005
	Loan Agreement (), Vol. -15-JUL-2004
	Program Document (PGD), Vol.1 -13-MAY-2004
	Project Information Document (PID), Vol.1 -17-NOV-2003

*Commitment at Board in USD$ millions. Does not reflect any cancellations. Pipeline and dropped projects display the forecast amount. Total project cost includes non-Bank funding.

** The project summary is drawn from the PAD, SAR, or PGD abstract and may not accurately reflect the project's current nature.

*** Project documents are posted to this website as soon as they reach certain milestones (more info.). For example, Project Appraisal Documents are processed and made available through this website a few days after Board approval. If you find that a report which should be here is unavailable, contact Infoshop .

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