This presentation was made by Jonas FALLOV, World Bank, at the 13th Annual meeting of OECD-CESEE Senior Budget Officials held in Paris on 6-7 July 2017

1. Public Investment Management (PIM) in Europe
and Central Asia
OECD CESEE meeting, Paris
July 6, 2017

2.  PIM: “The institutions, systems, and
processes guiding decisions on how to
prepare and implement public
investment projects”
 Closing the infrastructure gap – requires
better quality of capital and recurrent
spending
 Getting more for each dollar spent on
infrastructure – IMF estimates suggest an
average efficiency gap of 27 %, two-
thirds of which could be clawed back
through better PIM
 De-risking private and international
infrastructure financing
 Facilitating EU accession and EU/IFI-
funds absorption
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What is PIM and why is it important?
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AEs
{n=28}
EMs
{n=57}
LIDCs
{n=34}
All Countries
{n=119}
PublicInvestmentEfficiency
Index
Average
efficiency
gap of 27%
Average country is 27% below efficiency frontier with largest
efficiency gaps among low-income countries.
Source: IMF (2015)

3. A comprehensive diagnostic is a first step….
 A comprehensive analysis across all stages of public
investment projects ensures overview of interlinked problems
 Gap assessment against good international practice
 60+ engagements worldwide
Approach to assessment and problem-solving
…but Engagements should also include a
problem-driven approach to PIM
 Issue: Too many slow-moving projects
- Recommendations on how to rationalize project
portfolios
 Issue: Projects selected despite lack of feasibility
and readiness
- Support on how to identify, develop, and
prioritize cost efficient, affordable and legitimate
projects
 Issue: Scarcity of financing options
- Support on how to ramp up private sector
participation in infrastructure, including balanced
use of Public-Private Partnerships
 Issue: Poor overview of PIM portfolio
- Support on developing PIM information systems
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4. Experiences and results
 Gov’t officials trained in PIM concepts and good
practices
 Project prioritization framework adopted (Romania)
 Comprehensive PIM regulation drafted (Croatia,
Moldova) and adopted (Serbia, Cyprus - RoC,
Ukraine)
 Methodology for portfolio rationalization developed
(Ukraine) and piloted (Romania)
 Decree on step-in Rights and appraisal of PPPs
(Ukraine).
 Template and Guidance for first-level screening of
Project Proposals implemented (Cyprus - TCc)
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PIM Diagnostics implemented: Albania, Belarus,
Bosnia, Croatia, Cyprus (TCc), Georgia, Kazakhstan,
Kosovo, Kyrgyz Republic, Macedonia, Moldova,
Montenegro, Romania, Serbia, Ukraine
TA and operations: Azerbaijan, Cyprus (GoC), Georgia,
Kyrgyz, Moldova, Romania, Ukraine
TA and operations planned: Belarus, Serbia
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Diagnostics TA and Operations Planned TA and Operations
PIM engagements in Europe and Central Asia Results of PIM engagements – examples

5. 1- Continue work with IMF to develop joint diagnostic framework;
seek ways to further strengthen collaboration with OECD and others
2- Leverage private financing (“Cascade approach”)
3- Prepare PIM reference guide and other knowledge products
4- Build a harmonized approach to PIM and PPP
5- Facilitate peer assisted learning
Next steps in the work on PIM
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6. Thank You
FOR MORE INFORMATION:
JONAS ARP FALLOV (JFALLOV@WORLDBANK.ORG)
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