Publication: Tunisia Urban Development and Local Governance Program : Fiduciary Systems Assessment Report
Date
2014-06-26
ISSN
Published
2014-06-26
Author(s)
World Bank
Abstract
As part of the preparation of the
Tunisia Urban and Local Governance Program (ULGP) using the
Program for Results (PforR) instrument of the World Bank,
the Bank task team carried out a Fiduciary Systems
Assessment (FSA) of the Program in accordance with OP/BP
9.0. Based on the findings of the FSA, it is concluded that
Program Fiduciary Systems have the capabilities to provide
reasonable assurance that the financing proceeds will be
used for intended purposes. However considering the
existing weaknesses in Program Fiduciary systems, the
residual fiduciary risk rating for the Program is rated as
Substantial. The Program will finance a portion of the
Government of Tunisia s (GoT) existing program for financing
municipal service delivery that involves a combination of
Capital Grants, and Loans in addition to the Own Source
Revenues generated by the municipalities themselves. The
PforR Program intends to reform the system of Capital Grants
by making it predictable and based on an allocation formula
that is principle based and transparent. It has been agreed
with client counterparts that GoT will issue a Decree prior
to the start of the Program that will spell out the design
and operating rules of the reformed capital grant.
Indicative allocations for Capital Grants will be included
in the Five Year Plans and indicative allocations will be
provided by MoEF in advance of the annual plan preparations.
The budget allocations for Capital Grants will be
transferred from the Treasury Current Account at the Central
Bank (BCT) to the Caisse des Prêts et de Soutien des
Collectivités Locales (CPSCL) (referred to as the Caisse),
who will act as the Program Manager for the ULGP. Caisse
will in turn transfer the grant funds to municipalities in
accordance with the operating rules for the Unconditional
and Conditional Capital Grants. Preliminary assessment of
the Program expenditure framework shows that in addition to
the changes in the design of the Capital grant through the
proposed decree, additional steps such as publishing the
indicative allocations of capital grants in advance and
reforming the existing system of multiple ex-ante checks and
controls into a coordinated system of ex-post controls are
necessary for the efficient implementation of the proposed Program.
Link to Data Set
Citation
“World Bank. 2014. Tunisia Urban Development and Local Governance Program : Fiduciary Systems Assessment Report. © Washington, DC. http://hdl.handle.net/10986/19995 License: CC BY 3.0 IGO.”