World Bank2014-08-142014-08-142014-05https://hdl.handle.net/10986/19305Weaknesses in the public investment management (PIM) system may limit the gains from higher public sector investments in the Kyrgyz Republic. Capital spending has averaged 6.4 percent of GDP since 2010, up from 4.6 percent of GDP between 2005 and 2009, with significant investment in the energy sector and roads. Still, it remains unclear to what extent these investment decisions reflect the country's and sector priorities. Few projects, with the exception of donor-financed projects are subject to rigorous appraisal and there is no systematic procedure in place to monitor implementation progress. As a result, projects are often delayed or stalled and cost over-runs are frequent. Donor-financed projects, which comprise the bulk of public investment, are subject to relatively more rigorous project cycle management; however, they too face some of the same weaknesses. The rest of the note is structured as follows: section two provides a diagnosis of the public investment portfolio, including the structure of expenditures, the quality of the data, and a quantitative assessment of the efficacy and effectiveness of the public investment portfolio. The assessment builds on previous work on public investment in the Kyrgyz Republic, in particular the Public Investment Diagnostic undertaken in 2012 under the Capacity Building in Economic Management (CBEM) project. Section three reviews the institutional and administrative framework of PIM in Kyrgyz Republic. This draws largely from the draft Investment Diagnostic Report prepared in December 2012 using the eight key 'must-have' features of a well-functioning public investments framework proposed in Rajaram et.al. (2011). Finally, section four includes a summary of the findings and detailed recommendations on improving PIM.en-USCC BY 3.0 IGOACCOUNTABILITY ARRANGEMENTSACCOUNTABILITY FOR PERFORMANCEADMINISTRATIVE CULTUREADMINISTRATIVE FRAMEWORKAGGREGATE BUDGETAGGREGATE EXPENDITUREALLOCATIONANNUAL BUDGETAPPROPRIATIONSASSET MANAGEMENTAUDITORSBANK POLICYBENEFICIARIESBIDSBUDGET CIRCULARBUDGET CODEBUDGET COMMISSIONBUDGET DECISIONBUDGET DEPARTMENTBUDGET DISCIPLINEBUDGET EXPENDITUREBUDGET FRAMEWORKBUDGET LAWBUDGET MANAGEMENTBUDGET ORGANIZATIONSBUDGET PLANNINGBUDGET POLICYBUDGET PREPARATIONBUDGET PREPARATION CALENDARBUDGET PREPARATION PROCESSBUDGET PROCESSBUDGET PROPOSALBUDGET SUBMISSIONSBUDGET SYSTEMBUDGET SYSTEMSBUDGETINGCAPACITY BUILDINGCAPACITY CONSTRAINTSCAPITAL BUDGETCAPITAL BUDGETINGCAPITAL EXPENDITURECAPITAL EXPENDITURESCAPITAL INVESTMENTCAPITAL INVESTMENTSCAPITAL SPENDINGCASH FLOWCASH PLANNINGCASH RATIONINGCENTRAL AGENCIESCENTRAL BANKCHECKSCIVIL SERVANTSCOMPETITIVE BIDDINGCOST EFFECTIVENESSCOST ESTIMATESCOST OF CAPITALCOST-BENEFIT ANALYSISCOST-EFFECTIVENESSCOUNTERPART FUNDINGCREDIBILITYCURRENCYDATA ENTRYDECISION-MAKERSDECISION-MAKINGDEMAND FOR SERVICESDEVELOPMENT BANKDISBURSEMENTDOMESTIC CAPITALDOMESTIC FUNDSDOMESTIC INVESTMENTDONOR ASSISTANCEDONOR COORDINATIONECONOMIES OF SCALEEVALUATION CANEVALUATION OF PROJECTSEX POST ASSESSMENTEX-POST EVALUATIONEXCHANGE RATEEXPENDITUREEXPENDITURE CEILINGEXPENDITURE MANAGEMENTEXPENDITURE PLANSEXPENDITURESEXTERNAL AUDITFINANCE MINISTRYFINANCIAL ACCOUNTABILITYFINANCIAL CONTROLFINANCIAL MANAGEMENTFINANCIAL PERFORMANCEFINANCIAL PLANFINANCIAL RESOURCESFINANCIAL SECTORFINANCIAL SECTOR DEVELOPMENTFINANCIAL SUSTAINABILITYFISCAL CONSTRAINTFISCAL DISCIPLINEFISCAL REALITIESFLOW OF INFORMATIONGOVERNMENT INTERVENTIONGOVERNMENT POLICYGOVERNMENT PRIORITIESGOVERNMENT REGULATIONHUMAN RESOURCESINDEPENDENT ASSESSMENTINFORMATION FLOWSINFORMATION SYSTEMINFRASTRUCTURE INVESTMENTINFRASTRUCTURE PROJECTSINTERGOVERNMENTAL TRANSFERSINTERNAL AUDITINTERNATIONAL DEVELOPMENTINVESTMENT BUDGETINVESTMENT BUDGETSINVESTMENT CLIMATEINVESTMENT DECISIONSINVESTMENT FINANCINGINVESTMENT MANAGEMENTINVESTMENT NEEDSINVESTMENT POLICYINVESTMENT PORTFOLIOINVESTMENT PRIORITIESINVESTMENT PROJECTSINVESTMENT SPENDINGLEGAL FRAMEWORKLEGAL TRADITIONLOANLOCAL BUDGETSLOCAL GOVERNMENTLONG-TERM RESOURCEMACROECONOMIC FRAMEWORKMEDIUM-TERM DEVELOPMENTMEDIUM-TERM EXPENDITUREMEDIUM-TERM PERSPECTIVEMICRO-MANAGEMENTMINISTERIAL DEPARTMENTSMINISTRY OF ECONOMYMINISTRY OF FINANCENATIONAL AUDITNATIONAL GOVERNMENTSNATIONAL PRIORITIESNATIONAL STRATEGYPAYMENT DELAYSPERFORMANCE AUDITINGPERFORMANCE INDICATORSPERFORMANCE MANAGEMENTPERFORMANCE MONITORINGPERFORMANCE MONITORING SYSTEMPOTENTIAL INVESTMENTPOVERTY REDUCTIONPRIVATE INVESTMENTPROCUREMENT PROCESSPROGRAM BUDGETINGPROGRAM EFFECTIVENESSPUBLIC ADMINISTRATIONPUBLIC ENTITIESPUBLIC EXPENDITUREPUBLIC EXPENDITURE REVIEWPUBLIC FINANCIAL MANAGEMENTPUBLIC INVESTMENTPUBLIC INVESTMENT PROGRAMPUBLIC INVESTMENT SPENDINGPUBLIC INVESTMENTSPUBLIC MANAGEMENTPUBLIC MONEYPUBLIC PRIVATE PARTNERSHIPSPUBLIC PROCUREMENTPUBLIC RESOURCESPUBLIC SECTORPUBLIC SECTOR SPECIALISTPUBLIC SERVICEPUBLIC SERVICE DELIVERYQUALITY ASSURANCEQUALITY CONTROLQUANTITATIVE INDICATORSREALLOCATIONSREFORM EFFORTSREGULATORY FRAMEWORKRESERVESRESOURCE AVAILABILITYRETURNSECTOR POLICYSERVICE DELIVERYSHARE OF INVESTMENTSTATE AGENCYSTATE BANKSTATE BUDGETSTATE OWNED ENTERPRISESSTRATEGIC PLANSSUPREME AUDIT INSTITUTIONTOTAL EXPENDITURETOTAL EXPENDITURESTRANSPARENCYTREASURYTREASURY SYSTEMTURNOVERUNCERTAINTY10.1596/19305